West Orange Fix and Flip

[Gonzalo M. Trenosky]

Investment Info:

Single-family residence fix & flip investment in West Orange.

Purchase price: $268,000
Cash invested: $80,000
Sale price: $400,000

Fix and flip

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

This was my first experience with a fix and flip that required a complete overhaul of the inside of the house. It was not as successful as I hope it would have been but I learned a lot from the entire process.

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

I found this deal through a licensed realtor.

How did you finance this deal?

A 30-year bank loan with 20% down payment required. If I had known at the time about hard money I would probably have taken that route.

How did you add value to the deal?

Complete interior renovation, new landscaping, adding a rear back yard deck and other improvements.

What was the outcome?

I was happy with the improvements.

Lessons learned? Challenges?

Avoid having to use a 30-year fixed rate loan for a fix and flip. At the time I was very inexperienced and wish I had first learned a little more about the world of private money (i.e. hard money).

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

No.