First Fix/Flip (Late to upload, finished in 9/2017)

[Jordan Archer]

Investment Info:

Single-family residence fix & flip investment in Fort Pierce.

Purchase price: $150,000
Cash invested: $30,237
Sale price: $210,000

First Fix/Flip (Late to upload, finished in 9/2017)

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

I'm always looking for properties that have flip/buyandhold potential. I love the idea of building my income quickly with flips and investing the profits in buyandhold. Since I'm a realtor, the profits from a flip crush the profit from commission.

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

I market to probate properties, and end up listing most of them. Every once in a while someone wants to dump it.

How did you finance this deal?

I partnered with my parents on this one. I could have partnered with some hard money lenders in my area, so it was a win/win not paying the high interest and points, while sharing the profits with my family.

How did you add value to the deal?

-I found and negotiated the deal, and got it under contract.
-I determined all numbers (ie. purchase, selling, labor/repairs)
-I managed/coordinated/hired all repair work.
-My wife and I put in some sweat equity trying to save in areas where we could. (ie. painting, cleaning, etc.)
-I was the listing agent for the property saving on commissions. (I actually ended up double siding this property, which significantly lowered our costs)

What was the outcome?

- 30k in profits split between my parents and my wife/myself.
- Experience on our first flip

Lessons learned? Challenges?

A severe hurricane hit 2 weeks before closing, and we had to scramble to find hurricane shutters. We just replaced the roof so we had our fingers crossed nothing would go wrong...luckily, only the fence was blown down and it didn't effect the closing. Pfewww

We also learned that working with family has its ups and downs (not going in to detail on this one...)

Other than that, we got an insight on what it's like to work on a flip yourself (not very fun!) I would have hired people to do the work

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

Most of the professional services were kept in house. The other people involved in the deal I really haven't used since, so SORRY BUT I DON'T!