Most Recent fix & Flip

[Michael Hauer]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $226,000
Cash invested: $55,000
Sale price: $469,000

I was the buyers agent, listing agent and project consultant on this deal with my contractor. He hadn't done a full rehab in awhile so I let he lead the way with me as a backup advisor. He got himself into some trouble a few times while caused a delay. But I was able to guide him through it successfully. My thoughts were that he needs to make the mistakes so he can learn from them and be more successful in the future. I hope it worked. In the end, he made money and he did a fantastic job.

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

The house was in a good neighborhood with what I thought had good upside for the selling price. The house also had character but it was in desperate need of a complete renovation. Floors and walls were damaged, basement had water in it and it had too many little rooms on the first floor. I loved the Craftsman style and I tried to keep the design in line with tradition. In addition, we had to bring it into the 2020's so many updates were needed. such as all new plumbing, electric, HVAC, etc.

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

The house was on the MLS. The sellers needed more money than it was worth at the time. I though we could make it back on the backside. And that's what happened. The negotiation was easy.

How did you finance this deal?

Combination of personal funds and Hard Money. Next time I will use a Private Lender and a Hard Money lender.

How did you add value to the deal?

We completely gutted the property down to the studs and built it back.

What was the outcome?

The before and after photos speak for themselves.

Lessons learned? Challenges?

These type of renovations require some flexibility in terms of time, money and design. Things don't always go smoothly. Don't be afraid to ask others more experienced for help.

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

I was the buyers agent, the listing agent, the advisor, the counselor and therapist. LOL It's good to have someone with many skills and experience tagging along.