First Fix and Flip With Partner

[Andrew Farrar]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $82,900
Cash invested: $63,000
Sale price: $235,000

This was technically my first ever experience with a a fix and flip. I worked with an agent to find a deal, presented it to a hard money lender, found the contractor and subs, and oversaw the work. I didn't put any of my own money into this project and was able to walk away with cash to get started on my investing journey. You don't always have to have "enough money" to get started.

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

I always wanted to work for myself. So when I learned about the potential that real estate investing presents, I went all-in on reading books and acquiring as much knowledge as I could. I devoted all my time to finding a private lender and presenting a great deal.

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

I worked with a good local agent. We took about 7 months to find this deal.

How did you finance this deal?

Private lender- all-in was about $146k. Our deal was 50/50 profit split.

How did you add value to the deal?

Removed a wall in kitchen to increase size and add the open feel. All new flooring and carpet throughout. Took a room upstairs that was considered a "bedroom" because it had egress and a closet and converted to a nice master bathroom. Also grabbed part of one of the bedrooms and added it to the master bedroom by shifting a non load bearing wall. These improved the flow of the house and created an impressive master bedroom and bathroom.

What was the outcome?

After commission and paying the private lender, my profit was $31,000.

Lessons learned? Challenges?

This was the first project where I learned about what really sells a home: nice updated kitchen and an impressive master bedroom and bathroom.