We earned a 62% ROI on this FLIP! in 8 weeks!

[Joshua Christensen]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $127,700
Cash invested: $85,000
Sale price: $250,000

This foreclosure sat neglected for nearly 6 years. In just under 8 weeks we completely renovated the entire property: roof, stucco, windows, doors, trim, flooring, granite, stainless steel, new bathroom vanities, tile tub surrounds, pool equiptment, furnace, water heater, and so much more! Our first offer came 1 week before ready for market & the 2nd offer came the first day on market, both for full price. The neighborhood was unbelievably grateful and very accomodating.

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

I love renovating homes and bringing neighborhoods back to life. Additionally, my partner and I are using our renovation dollars to build up cash to play in the larger 10+ unit multi-family buy hold arena. The renovations are stepping stones if you will.

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

It was a bank owned property that I found. I am a licensed Realtor (r) in the area, so I negotiated it myself.

How did you finance this deal?

Very expensive Hard Money for acquisition & we put out most of the rehab dollars

How did you add value to the deal?

Complete remodel - roof, stucco, windows, doors, trim, granite, refinished kitchen cabinets, lighting, bathroom vanities, toilets, surrounds, flooring, paint, termite treatment and repair, finished the garage, new landscaping, restored the pool with new mechanicals, new furnaces & water heater

What was the outcome?

We sold it 1 week before our listing date then received a 2nd backup offer on day 1 of being on market for 1st weekend open house.

Lessons learned? Challenges?

Line out good reliable contractors. Get out of the Hard Money Game as quickly as possible. Build solid systems to keep the project moving along. Don't swing hammers, let the pros do it. Pay a little more for more reputable contractors who will do ALL the work including picking up materials.

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

I am a licensed Realtor in New Mexico and handle my own deals as well as working with other investors in the area. I absolutely do NOT recommend the hard money lender we worked with as they changed their requirements several times before closing costing us nearly double in closing costs & lost 1 month in extensions to close the deal.