Magna UT Fix & Flip Turned Note Investment

[Jeremy Bourgeois]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $189,000
Cash invested: $60,000
Sale price: $420,000

Disgusting hoarder/meth house that I bought and turned into the nicest house in the neighborhood. I sold this property on a lease option/contract for deed conversion and refinanced the house out of my hard money loan. This house makes me $750/month in completely passive cash flow (I don't have to be a landlord)

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

It was an incredible deal that I found off-market

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

I cold called the seller, and we negotiated the price over the phone before meeting for the closing

How did you finance this deal?

Hard money, then a DSCR loan

How did you add value to the deal?

I redid the entire house (drywall, HVAC, roof, landscaping, kitchen, bathrooms, and surfaces). I kicked out the squatters when I bought the house, and turned the ugliest house in the neighborhood to the nicest house. I then sold it quickly using creative finance to create passive income.

What was the outcome?

I kept a lot of equity in the deal, made my entire investment back when I refinanced and sold the lease option, and cash flow $750/month from this property.

Lessons learned? Challenges?

There are some great creative ways to create cash flow in more expensive real estate markets like Utah

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

Daine Clark (my hard money lender)