My first investment!

[Lauren Jones]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $115,000
Cash invested: $19,000
Sale price: $264,000

3 bedroom, 2 bathroom, 1 car garage, 1300 square feet in a historical neighborhood in Dallas. Fenced-in home with a shed out back.

What made you interested in investing in this type of deal?

Originally looked to a buy and hold but saw more potential for a flip on this deal. The Bigger Pockets Flip calculator was an exceptional tool that allowed me to put an offer on this property with confidence.

How did you find this deal and how did you negotiate it?

Acquired this deal from a wholesaler. I offered asking price, which was accepted.

How did you finance this deal?

I financed this deal with a hard money lender, Sherman Bridge Lending.

How did you add value to the deal?

We converted the garage into a bedroom, renovated one bathroom, updated the second bath, refinished the floors, electrical updates, new light fixtures and hardware throughout, and added flush lighting in the kitchen. The exterior got fresh new colors and we replaced a few windows. We did some big ticket updates in the kitchen, new appliances, new HVAC, new water heater, and we gave concessions at closing for a new roof.

What was the outcome?

We went under contract within 16 days, 7 days after a $6k price reduction.

Lessons learned? Challenges?

By far my biggest challenge is working this deal without a mentor. I've done extensive research before we pulled the trigger, but I had so many questions along the way. I made some key mistakes but when all was done, we made good seed money for our next deal.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I was very pleased with Tammy at Sherman Bridge lending. She was very responsive and answered all zillion of my questions.

[Mark Ito]

Congratulations! So glad to hear it went so well for your first investment! What were some of the biggest mistakes you made along the way that you learned from?