Traditional Fix and Flip

[Donald Eggers]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $345,000
Cash invested: $101,000
Sale price: $565,000

Traditional fix and flip in a very tight market sold with 40-year high interest rates (Oct 2023).

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

Increase cash reserves for larger purchases.

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

A business partner and I pooled out money to purchase this home in cash (not hard money) from a wholesaler. It was listed at $305,000 and we bought it for $345,000. The only reason we got it was because the other offers were hard money instead of actual cash and they had to close quickly. They even took our offer over another offer $5k higher.

How did you finance this deal?

A business partner an I pooled our cash for the purchase 50/50 and we split the construction costs 50/50. I used a HELOC on construction costs.

How did you add value to the deal?

Complete remodel.

What was the outcome?

We sold the property in 7 days 10k less than the list price and shared a profit of 100k.

Lessons learned? Challenges?

Get demo done as quickly as possible with a larger crew
Have a clear vision for the property up front
Having a higher quality finish drove an emotional appeal for the property and got it sold very quickly in a tough market to sell