How I Closed a $0 Out-of-Pocket Deal with Big Returns

[Freddy Alban]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $242,500
Sale price: $430,000

I used private lending to cover the down payment and closing costs, then paired it with a hard money loan to fund the project. We went all in on renovations—tore down a chimney to open up the space, put on a new roof, installed HVAC, updated floors, and completely redid the kitchen. Total reno cost: $85K.

The best part? It hit the market, and in just 2 days, we had multiple offers and sold above asking price. Crazy how fast it moved!

Love when a plan comes together like this.

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

The location really caught our eye—close to Uptown Charlotte, which is always a hot area. Plus, it's a corner lot with a big yard, which adds a lot of appeal. And the comps in the area supported a strong ARV, so it just made sense to jump on it!

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

We found this lead through SMS marketing targeting tired landlords. The property had a tenant in place, so we had to navigate that carefully. They weren’t thrilled about moving, but we worked with them—returned their deposit and offered cash for keys to help them transition into a new rental. It’s all about solving problems and creating win-win situations. They vacated the property the day before closing, and everything came together smoothly!

How did you finance this deal?

I used a private lender to cover the down payment and closing costs, which got me into the hard money loan. The hard money lender financed the rehab, so it ended up being $0 out of pocket for me. Once I sold the house, I paid back the private lender at closing.

How did you add value to the deal?

We removed a chimney to open up the space and updated all the major ticket items—new electrical, HVAC, and roof. On top of that, we repainted the house to boost curb appeal and really make it stand out. Those updates made a huge difference in the property’s value!

What was the outcome?

The property was on the market for less than 48 hours, and we got multiple offers over asking price. It couldn’t have turned out better!

Lessons learned? Challenges?

Invest in a security camera—we had a break-in where someone lived in the house for days and stole appliances, which insurance didn’t cover. Also, always vet contractors, even with referrals. A poorly chosen electrician delayed the project by two months and cost me time and money. Big lessons learned!

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

Me :)