Thanks BP! Made a Friend & Client Off Site. Made $26k on 1st Deal

[Kevin Hill]

First off, thank you to Bigger Pockets! I learn a ton off the site and podcasts, which helps me, as a real estate agent, better serve my investor clients. Best thing about it is making connections with like minded people in your area.

Met fellow member Kris Rasmussen off Bigger Pockets and he happens to live in the same town as me. After meeting and already being on the same page due to everything we learned off Bigger Pockets, we identified areas in Bergen County, NJ to focus his search for his first buy and flip. 

After seeing some houses and searching for a few months, we found a great potential house. It was an estate sale in Dumont, NJ. It was a bank owned property acquired through a reverse mortgage. The owner was 93 years old when she died and the house hadn't been updated in decades.

We jumped on it quick after it hit the local MLS. There were several bids on the property, but I knew it was a good deal, and Kris actually paid $10k over list price. Having already analyzed the current market value and ARV, there was still plenty of meat on the bone.

One good thing to know with foreclosures, even though the property is being sold in 'as-is' condition, you can still get credits from the bank. It turned out the furnace was shot and a large cast iron waste pipe was rusted out and needed to be replaced. We were able to get a credit from the bank to cover the cost.

I won't sugar coat things and say the flip went super smooth. We had delays with the contractor completing the work, unforeseen repairs required, a contractor scratching up the floor 2 days before the open house after they had already been refinished, and problems with the town & contractor over permits.

One tip I would give investors, I would actually go down to the town with your contractor and make sure all the proper permits were pulled so you don't have any problems when you go to get your certificate of occupancy. Some towns can be tough.

Also, have patience with buyers, especially if your home is in the first time home buyer range. They can often be panicky Petes and unless they have an experienced agent to counsel them. 

Even with overages and delays, Kris made $26k on his very first flip and we are already looking for the next deal in Bergen County!

Should I do a blog entry with all the before and after pics?