Fun Fix & Flip in Broad Ripple

[James J Canull]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $300,000
Cash invested: $90,000
Sale price: $485,000

This was a fun one I got to do a few houses down from where I live. It was also fun to tackle an eyesore to our neighborhood. There were bushes and poison ivy so mature, you could barely see the home before. The interior had gorgeous hardwood floors under the carpet, and large rooms all around on a large lot. This was the ideal value add situation, where I didn't have to change much on the layout.. mostly just design.

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

It had a lot of square footage and already had some cool historic touches. It just needed cleaned up and redesigned.

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

It was a few doors down from my home so I kept my eye on it. I got this one like many.. I put in an offer where it would work for my budget and waited it out over a few weeks of being in touch with the realtor and letting him know my interest at my price.

How did you finance this deal?

Private money lender

How did you add value to the deal?

remodeled everything inside and out. Also finished the basement which had a good amount of space, adding two bedrooms and moving the laundry to a closet upstairs where it made more sense.

What was the outcome?

After the first offer fell through I got another strong back up offer and made a good payday along with a young couple happy.

Lessons learned? Challenges?

The first offer fell through due to some outlandish requests from the Buyer. We tried to appease the buyer with one request after another. It got to a point I felt the buyer would never be happy so we pulled out of the deal. The end result was getting some excited buyers that didn't care about all of the issues the first buyer was making up. The lesson learned is vetting the potential buyers before pulling the trigger on the one that might look the best on the surface.

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

I used myself as the buying and selling agent