$Big Lesson Learned$

[Curt Curley]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $75,000
Cash invested: $47,000
Sale price: $185,000

$Big Lesson$
I found this property through a local wholesaler. I was on the fence on buying it until he said HEY! Did you look at the detached one-bedroom efficiency in the back? MY reply No! And that was all she wrote. I purchase the property using hard money 10% loan with the goal in mind to turn into a long-term rental. Toke me 5 months to rehab the home, new roof, Eletric, Plumbing, taking down walls we are talking full remodel. The rehab turned out great I had it rented for $1,450 a month I was going to make around $600 a month roughly. UNTIL I ran into a huge ISSUE! I have been an active real estate agent for 6 years and thought how could I make a mistake like this and not do my due diligence BIG Yikes. The problem we had was my lender who was informed of the CASH OUT Refinance plan the whole time (5 month prior). Gave me my mortgage estimate which I thought was a little high so I wanted to shop around and when I did all the other lenders, I knew said OHH no you can't cash out refinance until your first loan is seasoned for 12 months which ended up being the case the first loan officer just didn't know the new law changed that year. That was a huge curve ball in my plans BC I was getting married in 45 Days and needed to rehab money to pay for the wedding. I do understand I could do a DSRC loan, but I didn't know enough to confidently go that direction. So, I rushed and got in on the market I knew that 45 days would be cutting it close but Thank GOD I truly mean it! I was stressed to the max I was not used to being completely broke and forking out money left and right for the wedding. With 2 maxed credit cards my faith was growing slim. 3rd day on market it went pending full price offer. The story ended with the happiest of ending. It closed a week before the wedding right in time to pay everything off. A true miracle the check was a good amount more than I predicted. The guy who bought it is turning it into a rental property, so the plan worked out just not the way I planned.

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

The area and layout.

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

Wholesaler I was able to get it 5k below asking price.

How did you finance this deal?

Hard Money 10% down

How did you add value to the deal?

New mechanics and knocking out a wall in the kitchen.

What was the outcome?

Great outcome the property turned out amazing.

Lessons learned? Challenges?

Lesson learned make sure you have an exit strategy in mind first. Dont have to buy brand new go to the rehab store get creative. The biggest lesson was JUST DO IT, Pull the Trigger or take the leap whatever you want to call it but put your plan into action.

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

Yes, myself