My Second Flip Ever- Another Home run in Apex, NC

[Zachary Karczewski]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $318,000
Cash invested: $154,000
Sale price: $635,000

Bought this property off of a cold call with the brokerage I was at. This was my second flip. Purchased 318k with a remodel cost of 154k. My closing costs were about 24k for both purchase and sell combined ( I am a licensed realtor). So all in costs were around 178k. So I profited about 139k on this particular home, which was great. But my biggest win during this time period was convincing two contractors to come work for me full time. These were two guys that I trusted, did quality work, and that do well for themselves, but they were willing to take a chance on me. Still work for me to this day. These were my first two people to come onboard this crazy ride I'm in. This allowed me to really move with a purpose forward. Especially in this day in age where every GOOD contractor is booked out months and all you're left with is people who half *** things.

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

I'm all in on RE Investing. Was wrapping up my first BRRR/flip and looking for another. I was HOOKED

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

Cold call. They were in a dire situation and needed to move on. The home was tried on the market with no success due to the condition of the home. You couldn't be inside for more than 2 min without your eyes watering due to the cat piss smell.

How did you finance this deal?

Rolled the profits from my first deal into this one. Syndicated some money through friends and family to help finish off the remodel cost.

How did you add value to the deal?

Used a interior designer who was just starting out to help get the luxury look you see in the photos. Still was getting my sphere/network in place at this point

What was the outcome?

Purchased for 318k with 178k in total costs. Sold for 635k netting me about 139k. Property was sold at the top of the market at the time for a cash buyer. No appraisal was needed (Thank god). Comps in immediate subdivision definitely didn't support the price, but I knew the area well enough to sell people on what was coming which was a huge entertainment center that will be within walking distance proposed by the town of Holly Springs.

Lessons learned? Challenges?

I wish I had my quickbooks set up by this point and had the framework to correctly account for the ins and outs of my business... receipts, costs etc. It is really hard to back track. Especially when you are GC on your own job and are taking in hundreds and hundreds of receipts for each flip.