Hawkes Bay, New Zealand First Flip

[Caleb Hart]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $375,000

Cash invested: $12,229

Hawkes Bay, New Zealand
Single Family, 3 bedroom home with a large, older style shed.

Renovations:
Bathroom Painted (NZD $300)
Gutters (NZD $2,000)
Lounge Painted, insulated (NZD $600)

Status: Business Partner fell in love with the home and wishes to make it his forever home. Waiting to be bought out.

Conservative Estimated Profit: NZD $20,000-$25,000 + Government first home grant return (NZD $4,000)

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

Bigger Pockets Podcast. Researched what my local market favoured and found a deal under market value.

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

Found the deal: New Zealands equivalent of eBay (trademe.co.nz).

Negotiation: Minimal negotiation was required. Buyers needed to sell urgently. Had a few good yarns with the real estate agent and he sold us to the sellers despite being 5k under the other parties offer.

How did you finance this deal?

All pricing is in NZD
Savings: $8,229
Government first home Grant: $4,000
Total: $12,229

Business partner: $29,937

Bank Loan for the rest

How did you add value to the deal?

Basic cosmetic work

Lessons learned? Challenges?

Go into business with someone more experience until I myself have experience. Many decisions made could have been avoided with good guidance.

Ensure you both have the same intention with a house going into a deal.

Renovating a house is dangerously addictive

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

Justin (not sure of his last name) from Harcourts Realestate was absolutely fantastic.

SBS Bank really saved our bacon when our original bank fell through due to a change in policy.

[James Scholz]

I'd say 95% of properties are listed on trademe. Its a good place to look, but also means everyone else is looking there too. So if you can find a property before its listed on there, or private sales that aren't listed there is less competition.