Single Family Residence Auction Flip (first post)

[Chandler Holt]

Investment Info:

Single-family residence fix & flip investment in Springfield.

Purchase price: $60,000
Cash invested: $18,000

This house was sold at auction and we will be taking possession of in November.

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

This property is close to my house, was sold 40% below what it would be worth after a renovation, and I know the owner.

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

The property showed up on Zillow due to the owner approaching foreclosure. I know the neighbor and reached out to him to pursue him selling before the bank stepped in. While in negotiations he signed on an auction company before we submitted an offer. The house was then purchased at auction where only investors stuck around to bid on the real estate.

How did you finance this deal?

My partner and I were prepared to buy the house through traditional financing and wanted to bring in a few investors at small amounts to gain experience. The first investor I approached was so interested he ended up agreeing to finance the entire deal!

How did you add value to the deal?

We will be taking possession of the house soon. Currently the plan is to replace the entry doors, refinish the wood floors, replace the countertops, replace the cabinet doors with doors I will build, update the kitchen and bathrooms, and clean / paint / pressure wash the property.

Lessons learned? Challenges?

I will let you know when we get into it!

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

I have used local real estate agent Terry Tindall “The Real Estate Lady” here in Springfield MO and had great experiences previously.