Fix-and-Flip Turned Bond-for-Deed

[Jon Lester]

Investment Info:

Single-family residence other investment.

Purchase price: $74,500
Cash invested: $25,000
Sale price: $140,000

I bought this house to do a traditional fix-and-flip and then market slowed down hard in New Orleans. We decided to get creative and sell it on Bond for Deed with a 10% down payment and all monthly expenses covered by the buyer.

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

The sellers wanted quick cash to purchase a new condo unit in an assisted living facility and I was able to help them hit their goal and deadline.

How did you finance this deal?

Hard-money + my own cash for the purchase and repairs, then refinanced through the same hard money lender in first position.

How did you add value to the deal?

Installed HVAC, replaced flooring, windows, and some cosmetic upgrades. Painted myself to save some money.

Lessons learned? Challenges?

I learned to better price my repair budgets after having to do a few things myself to save money.