Blessed with the ffirst Flip netting nearly $110k profit.

[Alex Dem]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $57,000

Cash invested: $48,770

Sale price: $245,000

Great first deal, got us hooked up on rehabbing opportunities. Took roughly 8 months for this project and netted $109,500 profit. Great way to get started in the business. We were lucky and blessed with this opportunity.

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

Plenty of risk, as this was a foreclosure property, but the numbers worked and we went with it.

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

Foreclosure auction

How did you finance this deal?

The rehab was financed with our own capital.

How did you add value to the deal?

Needed somewhat substantial renovation, thus we have performed - numbers made a perfect sense, so we pulled the trigger.

What was the outcome?

Great project, plenty learnt!

Lessons learned? Challenges?

lost $10k to the contractor that made an impression of work and disappeared ( power washed half of the house, demoed kitchen and cut half of the lawn shrubs ;D) . Lesson learnt - pick contractors carefully and take a good care of those with integrity and sincerity.  NEVER give substantial DOWN to the contractor and check with them often especially at the beginning of the project.

NEVER act on contractor URGENCY - need money to repay other loans. Stick to the payment arrangements unless you have a great relationship and worked multiple projects together.

Stay extra conservative when it comes to estimating cost / rehab - rather be well surprised once it closes and you get more than you've expected !

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

Established a great team ( new contractor that we've done deals later in the future, attorney that we are still with)