Flip investment! investor

[Michael Nugent]

Investment Info:

Single-family residence fix & flip investment in Riverside.

Purchase price: $285,000
Cash invested: $103,000
Sale price: $425,000

Beautiful Craftsman home in the Wood Streets. Sellers put a lot-of-love in this one rehabilitated home. Enjoy a very long paved driveway and a larger than average lot...perfect for a swimming pool. The garage has a workshop wrapt around precise for your toys. You also have the option to make it an outside office for your business. The interior of this residence was tastefully renovated with the most demanding buyer's needs in mind.

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

I became interest in this deal because #1 I loved the area, #2 was very close to my home and #3 there was some money to be made fast.

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

I purchase this deal through Western Acquisitions in Corona, Ca. They are whole sellers, and they found me. I paid the asking price.

How did you finance this deal?

I obtained a hard money loan for $245,000.00 at 10% APR for 12 months fixed and paid 3% plus $800.00 in other fees. "Not the best terms"

How did you add value to the deal?

We "rolled" the dice on this one by adding high-end features, upgrading all systems, converting a bedroom into a master bathroom and closet, converting a sun-room into an office and tastefully combining all the modern features while conserving the integrity of the building, it being a craftsman home built in 1920.

What was the outcome?

It was positive: We sold it immediately after we listed it and closed the deal in only one week.

Lessons learned? Challenges?

Budget for the worst and do not wear the sub-contracting hat if you are not experienced on the actual work required. Instead of sticking to one crew who was charging me an arm in a leg on an already slim deal; I decided to hire people in different trains individually forcing me to micro manage and purchase all the materials. Home Depot became my 2nd home for almost 2 months. There were many challenges involving the crew in charge of completing the project.

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

I handled the deal myself as I am also a licensed realtor. I used a very speedy and efficient HM company named Secured income Group, Inc. out of Tustin, Ca. www.securedincomegroup.com even though it costed me a pretty penny to finance the flip; this lender came through and lend me the money in only 2 days time. I would highly recommend them as long as you have a nice margin on the deal.