Richardson Fix and Flip

[Shelby Graham]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $270,000
Cash invested: $40,000
Sale price: $400,000

1960's Ranch in the heart of DFW. Four bed, two and half bath.

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

The shell and the systems of this home made it a fun flip. No real exterior work needed and all the home's systems and roof were updated. The interior was a time warp and it was fun to get to redesign the interior.

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

It was listed on the MLS. I loved the neighborhood and we offered $1000 over their asking price. Dallas is a hot market and at the time it was a sellers market. Investors finding flips is harder.

How did you finance this deal?

Hard money on the purchase and personal investor on the rehab money.

How did you add value to the deal?

There were a lot of splits on this investment.

What was the outcome?

Great flip. Went by pretty quickly and closed pretty fast.

Lessons learned? Challenges?

Insist on receipts from your contractor. Our contractor put us off and put us off on his receipts. We had a deal that you get a draw when we get receipts. It was tough keeping him on time.