Updated about 3 years ago on .
Small financial investment
Investment Info:
Single-family residence hard money loan investment in Elma.
Purchase price: $350,000
Cash invested: $10,000
Sale price: $700,000
I invested a small $10k for a 10% annual return
What made you interested in investing in this type of deal?
I wanted to make money on my money via real estate
How did you find this deal and how did you negotiate it?
My friend told me about it. He had done 1 other investment with this flipper and brought me into the 2nd investment with her. Unfortunately, after the one that I did with her she decided to get out of the business. Now I'm looking at getting a group of friends together to invest in some properties through my brother who's done a few investments with a builder.
How did you finance this deal?
Money I had saved.
How did you add value to the deal?
Offered finances to help fund the flip before the sale.
What was the outcome?
Property sold for higher than expected. Unfortunately, my cut was still only 10% of what I lent.
Lessons learned? Challenges?
I didn't learn much from this deal, but it was a upsetting to find that I couldn't do it again with the same person. I know my 10k wasn't much, but it was a start and we all start somewhere.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No