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Updated almost 9 years ago, 12/08/2015
Third Fix and Flip Success!
Just wanted to share my 3rd flip of the year our here in Las Vegas, NV. Just to give a little background I was out of state for the summer so I never saw the property other than the pictures. It was a HUD home listed for 96k on the MLS. I bid 88k and got the property. Based on the pictures and having a friend look at it for me, we figured it would be about 20-22k in work. Well as you can imagine it's a little hard to get a good estimate when you don't see it yourself and it ended up being closer to 29k in rehab costs. I financed it with hard money and ended up paying $7500 in loan fees between origination and holding fees. It took a little less than 5 months to fix it up and get it sold. I ended up selling it for 145k with $4000 in closing costs credited to the buyer. After all the fees and holding costs I profited about 12k. I expected to make almost 20k going into the deal but the rehab estimates were off by not seeing it. It still ended up being a good flip and everyone made money so I can't complain! But now I know next time I can't see it to get someone who can give me an accurate estimate! Here are some pictures!
Looks great! Just goes to show that it CAN and IS being done! Congrats!
Awesome!!
Hey Ryan, great story man. It's really motivating to hear your story and how you did it. 20k would have been great but I'm sure 12k and experience you'll take on with you to the next project.
Questions, how much of your own money did you have to put into it? Did the hard money cover repair costs?
What's the most important thing you learned from this deal that will help you get the kind of $ you expect next time around?
Thx
Nice work for a site unseen job. Let's talk about your next one. I'd like to participate.
@Ron Woods Thanks man. I had to put about 50k of my own money into it between rehab, down payment, and loan fees. The lender gave me 78k of the 88k purchase price. Pretty much the biggest thing is getting someone who can give me an accurate estimate for when I can't physically see the property.
@John Wielgolinski I don't have all the exact numbers in front of me but ya the $7500 included all holding fees and origination. So I purchased for 88k and spent about 2k in escrow fees on the buy and sale. I spent about 8k for the buyers agent commission and contributions towards buyer's closing costs. Then I spent around 29k for repairs which include utilities, insurance, etc. I also made a 3% commission on the purchase so that was about $2500. I'm sure I'm forgetting something but it came out to about a 12k net.