100k over asking during Covid

[John P Becker]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $270,000
Cash invested: $99,000
Sale price: $525,000

This was during the height of covid and we ended up getting 100k over our asking price which was crazy. Another crazy thing is we found this house on Facebook Marketplace. We looked at it and filled out an agreement of sale on the spot. This ended up being one of our most successful flips.

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

Deals were hard to come by during this time due to Covid and the market was just going wild. This house was not listed with a Realtor so we were able to deal directly with the seller.

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

We found it on Facebook marketplace. I went and saw it with my partner and I said we should bring a blank agreement of sale with us just in case. He was skeptical because they were asking for 330k but I said let's just offer them what we think its worth and go from there. I think we offered 260 or 265k and came up to 270k.

How did you finance this deal?

We paid cash

How did you add value to the deal?

We reconfigured the kitchen to make it more functional and we finished off an attic space.

What was the outcome?

Probably our best flip ever

Lessons learned? Challenges?

We didn't run into too many challenges on this one other than probably going over budget a little bit.