2nd Fix & Flip Project!

[Stacy Fernandez]

Investment Info:

Single-family residence fix & flip investment in Lincoln.

Purchase price: $90,000
Cash invested: $10,000
Sale price: $118,500

2nd Flip!

Found lead on Craigslist - Posted that they were motivated sellers and would only take $110,000 on the house.

Scheduled a walk through. Gave a cash offer on-site of $85,000 they declined.

We knew they needed to have a signed contract by Friday at 6pm so we sent them a message with a photo of a contract at $85,000 around noon on Friday.
They responded saying they needed at least $90,000. Ran our numbers again and found we could save some money by painting ourselves and set up a time to get the signed contract.

At 5:30pm we were at their house signing a contract so they could qualify for their dream home they were going to purchase!

The house needed cosmetic repair including:
- Refinishing the wood floors
- New paint
- Finish basement with drywall, paint & carpet
- Revamp the laundry room with paint & cleaning
- Change a closet door
- Landscaping clean up
- Refinish bathtub

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

Wanting to build some reserves to later invest in multi-family apartment.

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

Craigslist - In person cash offer and later via picture message. When explaining what we could pay we mentioned the work we would do to it and the comparable prices and how the amount of work vs the sell price wouldn't meet their requested amount. We ended up paying more than our initial offer (we built in room for negotiation).

How did you finance this deal?

Hard Money

How did you add value to the deal?

Fixed it up so it would sell better on the market.

What was the outcome?

Profit.

Lessons learned? Challenges?

Don't get angry when a first time buyer asks for everything the inspector pointed out - they are just being cautious and negotiation is just starting not ending.

Try to encourage the use of reasonable inspection companies - Some inspection companies treat small things like it is the end of the world and that scares first time buyers!

Don't think just because the fix is cosmetic you have time to get things done - be aggressive and timely ALWAYS!

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

Cody Brinkman - REALTOR®
Marcus Tooze & Aaron Impens - Hard Money Lenders
Justine Sintek - Charter Title