My First Fix & Flip Journey 2017

[Michelle Theriault]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $279,000
Cash invested: $45,000
Sale price: $425,000

Off-market property I found, contacted the sellers and proposed a cash offer of $279K "as is" (suggesting we would clean out the entire property & dispose of whatever the sellers didn't want.). They accepted & I partnered with my broker owner at the time who was/is a very seasoned investor doing all kinds of fix & flips. I learned a TON, and we each walked away with $34K in our pockets (a total of $68K in profit earned). I was HOOKED!!

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

I had just finished a course @ my local REIA, "How to find the hidden gems" & was EXCITED about putting it into practice right away to do a deal!!

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

I was already a licensed agent for 3 years @ that time, I was already doing a short-sale across the street, asked the seller if he knew anyone in the neighborhood looking to sell, & the rest is history as they say....I ALWAYS wanted to do a fix & flip, & this was my BIG CHANCE!! I'm SO GLAD I took the risk, walked through my FEARS & pushed out of my comfort zone!

How did you finance this deal?

We did a commercial loan, 20% down (10% down each)-I leveraged my partner's relationship with his commercial lenders to establish a baseline of credibility for myself and cut my teeth doing my first deal.

How did you add value to the deal?

We added $40K-$50K refinishing the hardwood floors, removing wallpaper, painting walls and updating the kitchen & bathroom with new cabinets, adding granite countertops and creating a BEAUTIFUL dining room off the kitchen that was wasted space as an enclosed porch, and also added french doors leading out to a newly-built pre-finished deck we added so the new owners could enjoy their gorgeous fenced in backyard. Added new windows & central AC (already had the existing duct work in the basement!)

What was the outcome?

The renovation came out AWESOME!! We listed it and made $25K over asking and we EACH made $34K net, YAY!!!

Lessons learned? Challenges?

I had NO CLUE what I was doing when I got this property under contract, but I knew in my gut I had something AWESOME that could change the trajectory of my life & real estate experience & career. Feel the FEAR, and DO IT ANYWAY!!! I pitched this deal originally to several local investors I had known over the years, & ALL wanted to "steal" it from me. "I don't know Michelle, we can give you $3K-5K if you wholesale it to us, & btw we can't pay you to relist". SO GLAD I listened to my GUT!!