First Fully Long Distance Project

[Daine Burke]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $42,000
Cash invested: $82,500

Purchased for Fix & Flip or BRRRR, currently ongoing.

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

Already had a contact in the area, so I had someone on the ground. Purchase price was affordable and rehab cost was fairly low, and it had a good ARV which left room for rehab cost overrun.

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

Invest Lift, and I negotiated with the Wholesalers by conducting an inspection first and using the required safety repairs and estimated costs to come to a max offer price which they accepted.

How did you finance this deal?

Initially self funded, but after a few delays and surprises, I refinanced with Hard Money.

How did you add value to the deal?

Added a second full bath, new kitchen, flooring, siding, roof, paint, and landscaping.

What was the outcome?

Still in progress

Lessons learned? Challenges?

First contractor ran off with a portion of the funds, then discovered unexpected fixes that were even worst than anticipated. Ensure you have enough budgeted and expect delays and surprises. Also, never pay more than 30% up front.

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

Yes, I worked with Back Flip for the deal analysis and funding. Their app is awesome and provides a one stop shop. I also used Bigger Pockets analysis tools to double check the data and they were pretty on par.