First Fix & Flip Property

[Stacy Fernandez]

Investment Info:

Single-family residence fix & flip investment in Lincoln.

Purchase price: $70,000
Cash invested: $40,000
Sale price: $134,900

Our first flip! We bought the property from our hard money lenders. The property already had a contract with a renovation company in place. We adjusted the bid by taking on some of the projects ourselves including demolition.

Major issues we addressed:
Water in Basement - Addressed grading issue by adding dirt around house, new roof and gutters.
Water Heater & Furnace - Replaced.
Outdated Kitchen - New cabinets, counter tops & appliance in kitchen and opened up wall separating Kitchen/Living Room.
Outdated Bathroom - New vanity, toilet & shower.
Unfinished Basement - Fixed up bad drywall job and finished.
Deteriorated Garage Siding - New garage siding.

Cosmetic Issues Addressed:
Painted interior of house.
Painted exterior of house.
Finished wood floors.
Carpeted basement.
Cleaned up yard, landscaped and refreshed retaining wall with some paint and crack repair.

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

Wanted to flip some properties to build up cash reserves so we can invest in mini-multifamily apartments (20+ units).

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

Met some hard money lenders/local experts at a REIA. They gave us the opportunity to flip it and use them as hard money lenders.

How did you finance this deal?

Hard Money - Property Purchase
Personal Funds, Credit Cards & Partner - Rehab Costs

How did you add value to the deal?

Forced appreciation to the property through rehab.

What was the outcome?

We made a decent profit and split the profits 50/50 with our partner (aka my contractor dad).

Lessons learned? Challenges?

Some things are worth paying someone else.
Stay on top of your contractors - yes even your father!
Don't go over board on fixes you never know what the end buyer will really want.

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

Cody Brinkman - REALTOR® (He inspired me to get my license and am now a part of his team!)
Aaron Impens & Marcus Tooze - Hard Money Lenders & Local Experts
Justine Sintek - Charter Title
Krisha Meader - NLTA Nebraska Land Title & Abstract