Entry level first rehab

[Michael R Seitz]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $10,000
Cash invested: $32,000

This was originally a two bedroom house upstairs with kitchen dining room living room and a bathroom downstairs with like a mud room for say. There is even a front porch that was turned into like a foyer.

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

Well I invested to help a friend put a camper on it and we kind of talked about trying to go into business together. 

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

Well my guy that I helped found it on Facebook marketplace the guy was only asking $9,000 and I basically told him I liked it I wanted it and the seller tried to play the smooth saying I've got a bunch of buyers and the price went up and I basically told him to take it or leave it and I bought it for 10,000 bucks

How did you finance this deal?

I had my own money

How did you add value to the deal?

Well basically I have had connections to help with the roof on to help gut the house as well as try to GC some of the little bit of stuff I needed done but far as that just the finance guy

What was the outcome?

Project still not finished as I ran out of money to put into it and it's kind of a messed up deal as I've got a friend of mine well current business partner living in there as he's supposed to be fixing it up but this relationship is coming to an end just because of other personal issues

Lessons learned? Challenges?

Lesson learned don't go in business with an x drug addict. He hasn't like screwed me or nothing but he seems to love living in his own misery.

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

I have one that I'm working with but we haven't really figured out what we're doing yet with it.