Havertown Flip Project

[Dan Powers]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $350,000
Cash invested: $250,000
Sale price: $850,000

This rare corner property located in the coveted Havertown neighborhood had my investors running to get a chance to secure this beauty. At over 2400 sqft and a beautiful wrap around deck my investor planned to fully gut this property and get top dollar. With comparable properties reaching north of 800k and selling under a week on market and over asking this is a home run any way you slice it.

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

What made my investor interested in this project was the area plain and simple. Located in Havertown school district there is an overwhelming amount of demand for the Philly suburbs with all comparables selling over ask in under 6 DOM.

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

This deal was sourced through New Western and sold as a 48 hour highest and best.

How did you finance this deal?

This deal was financing through Sherman Bridge Lending.

How did you add value to the deal?

Value is being added to this deal by a full gut rehab and remodel of the current layout. Changing the current layout from a 3/2.5 to a 4/2.5 while enhancing the master bedroom into a master suite with huge walk-in closet and bathroom. In addition to all new mechanicals and cosmetics a portion of the rehab will focus on upgrading the current landscaping to enhance privacy.

What was the outcome?

The outcome is going to be a stunning home in a great school district that is going to sell in under a week.

Lessons learned? Challenges?

When talking to investors about the project some newer investors did not understand all the hype behind the area and why an investor would put so much capital into a single project. Everyone is at difference levels in their flipping careers but I explained that in these nicer areas you're going to have a slightly smaller margin but you are paying up for the security of that return. When houses are selling over ask by 10's of thousands cash and under a week you risk is significantly less.

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

Dan Powers - New Western