Single Family Residence Fix and Flip - Private Money

[Daniel Hansen]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $580,000

Cash invested: $60,000

Sale price: $781,102

My managing broker purchased this property from an owner who was upside down in the house, I remodeled the entire main floor including building a brand new kitchen, moved the laundry room from an odd location behind the kitchen to its own room in the basement, hired contractors to fixed stucco work, paint the entire interior and sand and refinish all the hardwood floors. I managed the project and had it completed and back on the market in 6 months.

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

I have worked as a contractor for many years, switching over to the agent side of real estate opened my eyes to the potential in run-down properties.

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

This property is located in Roxborough Park, a small community where my office is located. My managing broker was contacted by the owner because he was upside down in the property and wanted out. She purchased the property from him and hired me to manage the flip.

How did you finance this deal?

Private Money

How did you add value to the deal?

Complete main floor remodel, moving a laundry room from a very odd location to its own room, opened the floor plan and purchased all new appliances for the brand new kitchen. Re-tiled two bathrooms and sanded-refinished all hardwood floors.

What was the outcome?

Outcome was a sale price $200,000 more than purchase price in a 6 month time period.