Luck had nothing to do with it

[Gabriel Roberti]

Investment Info:

Single-family residence fix & flip investment in Norfolk.

Purchase price: $112,000
Cash invested: $45,000
Sale price: $215,000

Let your significant other know when you are about to use 160K of your own money on an investment deal, especially if it's your first ever!
3Bed, 1.5 Bath 1300 sq ft SFR converted to 2 Bath and fixed up with about 45K. Do not forget to calculate all the little costs ie, taxes, utilities, staging, unknowns, etc. They add up quick.

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

Making money

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

An agent found it for me on an auction site. I don't like the online sites because the provider is allowed to bid up the price. The whole online real estate auction thing seems sketchy to me even after purchasing this property I still haven't bought another one through online auction.

How did you finance this deal?

My own cash, will not do that again. I wrapped up 160K in the home, made 30K. It was about 20% ROI. Didn't even know what hard Money was and now I would never put that much of my own into one property. Either Hard Money or private money from now on.

How did you add value to the deal?

Sweat Equity

What was the outcome?

Learned a lot. Don't pay contractors until they are done with the job or you will never see them again. Fire contractors on the first sign of not meeting deadlines, it will save you weeks in the long run, plus save you money. Every day that property sits is eating into your bottom line.

Lessons learned? Challenges?

The old cliche, "Good work is hard to find!"

Finding properties and working with people who are on the same page as you.