411 E Broad - FSBO, Renovated and Remodeled and Sold To A New Family

[Keyvan Moussavi]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $900,000
Cash invested: $240,000
Sale price: $1,520,000

Was driving by home this time last year and saw a FSBO sign. Called the owner, he was frustrated about the home and wanted to get rid of it quickly for a 1031. We talked for a while, he liked the fact that I was not salesish and decided to sell the home to us. I promised that we would not build a new home; the home was his parent's, he wanted it to stay

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

Perfect location, in the heart of Falls Church City, 10 minutes away from DC and other major locations in Northern Virginia. FSBOs are always interesting because you tend to get them for a bargain. We should have paid less, but it worked out.

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

Was driving by and saw a FSBO sign. The fact that we did not want to demo the entire home was a big selling point, it was an emotional think and we realized that from the beginning. We decided to work that angle, this played a big part in the negotiations. We are a family owned design build, he cared much about that as well, he wanted to help us.

How did you finance this deal?

Partnered with a friend and raised $250K for down payment and raised the rest through hard money.

How did you add value to the deal?

I am a builder, we design and build homes and addition for our clients. We bring a wealth of experience as we put 100 hours a week towards this industry.

What was the outcome?

Our target was $1.4M, we listed for $1.57M, we sold it in 16 days for $1.52M. We took the first offer that we got, we did not want to take a chance. We would have met the list price I'm sure, had we waited. But we decided to sell and move on to the next one.

Lessons learned? Challenges?

Permits took forever, we should have filed for permits sooner. For future projects, we set the closing date much further out to give us a chance to pull permits way before closing.

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

Lisa Koch and Julie Hamilton and Jaime Magne in the Northern Virginia were instrumental in helping us succeed.