Fix and Flip with New County Requirements

[Sean McDowell]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $17,000
Cash invested: $107,000

Fix and flip that ran into new county permit issues. Now in Richland County, SC, you have to get a licensed General Contractor or Residential Builder to "run" your project when you purchase as an LLC. Imagine trying to find your investor friendly GC/RB that agrees to put their license on the line while you run it yourself. And then you are beholden to them asking for inspections and making sure everything is square before they even submit requests. It added SO MUCH time to this job, but we are nearing the end. It has been on the market for 24 days and we have had three offers. One we accepted but they wanted EVERY item on the inspection report completed. The teeny tiny nit noid stuff that the inspectors find because you re-did all the major components and they want to look like they did some work. Fingers crossed we close at the end of the month and this can be updated with our final numbers.

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

We use Fix and Flips to fund Buy and Holds.

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

Through a partner.

How did you finance this deal?

Personally funded.

How did you add value to the deal?

Dirt to roof renovation turning it into the nicest house in the neighborhood.

What was the outcome?

Awaiting.....

Lessons learned? Challenges?

County government can turn on a dime and require new things that they didn't care about last week.

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

Yes. A partner, a project manager, a realtor, a general contractor, and many exceptional subcontractors.