Just Getting Started!

[Brandon Allison]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $160,000
Cash invested: $30,000
Sale price: $225,000

1st property! Picked it up as a short sale with a coworker who knew I was interested in business. We did most of the work ourselves and then hired pros to come in and finish up the bathrooms to get across the finish line. We learned a lot and ended up working well together.

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

I have been interested in real estate for many years, and it took a partner to get me off my but and get started.

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

My partner had bid on the home as a short sale to live in. A year later the bank got back with him and accepted his offer, but he already bought another house. So he asked if I was interested on break at the 9 to 5 and the rest is history.

How did you finance this deal?

We did a standard 20% down. I emptied my savings and borrowed against my 401K for the down payment and the repairs cost.

How did you add value to the deal?

We renovated all the rooms, painted all of interior, painted exterior, installed luxury vinyl plank flooring (fantastic!), new light fixtures, 2nd had appliances (all nice and stainless), and rebuilt A/C Box.

What was the outcome?

The house was on the market for 6 months, however we each came away with a profit.

Lessons learned? Challenges?

We each have a better understanding of our skill level, and a more realistic expectations of time and cost. We would be more willing to spend the $$$ early to hire people to get the tasks done quickly, and more professionally.

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

We are building a reference list of Professionals, more to come.