Painful Deal- My 1st Foreclosure - Atlanta

[Jonathan Small]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $80,000

This was one of my first deals I purchased at the beginning of my real estate investing career. I purchased this property with the plans of fix and flipping it.

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

I was interested in this deal because it was in an area that had a lot of renovations and the neighborhood was transitioning into a positive neighborhood.

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

I found this deal from a wholesaler.

How did you finance this deal?

I purchased this deal using a hard money loan from a private lender.

How did you add value to the deal?

I painted the inside and outside of the property. We replaced the hot water heater

What was the outcome?

I lost this property to foreclosure. I was over extended in this property as well as other properties. The property was given back to the private lender.

Lessons learned? Challenges?

I learned I need to buy deals with a lot of room for profit. I learned to buy in areas that families with kids want to live in. I learned to use professional contractors and not unlicensed handymen to do large jobs. I learned to have multiple exit strategies on a fix and flip. I learned to have a team and get them involved in the project before I purchase the deal. I learned to have cash reserves to complete the project.

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

no