Fix and Flip Deal Closing 5/1/2024 11am (Follow the Journey)

[Kevin Walton]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $190,000
Cash invested: $25,000

Bought this property using HML, total cash in is actually $87,000 including the down payment and lender fees. Total resale is looking to be $285,000-$290,000 which leaves us with about $50,000 in net profits after lender fees, closing costs, holding costs, and minor renovations. Looking for a 90-120 day exit max.

This is a partnership deal with one of my long-term clients. We are doing a 60/40 split as he has come in with the majority of the capital on this deal.

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

The appeal came from the "turnkey" and approximately $25,000 in equity at the closing table alone. Once the upgrades go in, we are looking at modernizing and maximizing on the return.

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

Wholesale deal, it was extremely fast paced and had to move quickly on securing the HML and acquiring the funds needed to close. We have a long list of contacts that we funnel deals through/from.

How did you finance this deal?

Hard Money Lending/Private Money through Spring Garden Lending

How did you add value to the deal?

Full guts of the bathrooms, replacing all fixtures, throwing modern tile finishes for the tub/shower, new vanity, new cabinets in the kitchen, island, new stainless-steel appliances, new flooring throughout, new recess lighting, and likely new siding on the property to give it a more freshened pop for when it goes back on the market.

What was the outcome?

We will see......

Lessons learned? Challenges?

If you can buy cash, do it. Avoiding lender fees will save you upwards of $18,000 on average just in acquiring the deal.

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

I am an agent myself, so no I did not work with an agent. I did however work closely with New Western, which I would recommend any of their agents and their database to anyone looking for potential deals. Spring Garden is awesome and will move mountains to ensure a deal closes. Definitely worth the contact if you are looking to move fast, and continue to scale/looking for volume.