Carlsbad Flip Property

[Mike Daniels]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $1,300,000
Cash invested: $130,000
Sale price: $1,650,000

We work with an investor who purchases the house and secures a deed in his name. We then use our money for the improvements. We sell the property and each side get their money returned off the top then we split the profits 50/50.

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

It's a win-win for the investor and us.

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

We research properties that we return at least 15% on our money. This property had a 15.86% ROI. The commission was $32,000 and we split it 50/50 with the investor.

How did you finance this deal?

Cash Investor

How did you add value to the deal?

When we sold the house we did not charge the investor a commission.

What was the outcome?

We've done about a dozen flips. This house was our first flip in 4 years. We were shocked at the cost of goods, lumber, cabinets, paint, plumbing. But we were able to come out on top despite inflationary costs.

Lessons learned? Challenges?

Would like to hire more daily workers to decrease time. Spent too much of my own time trying to save money. In the end, it would have made more sense to hire a couple handymen for a week or two than me spending 3 weeks installing flooring, base and case.

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

Stacy Daniels at Rancho Coastal Properties, Inc.