Fix & Flip in San Luis Obispo County

[Owen Schwaegerle]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $230,000
Cash invested: $12,000
Sale price: $297,000

Identified a distressed property and purchased it off market. Seller was extremely motivated and sold it quick for cash. Had to negotiate a rent back, and it took a while to get him out of the property so it delayed the renovation time. Fixed it up for about $10,000 and re-listed it for $297,000 and got a full price offer. Also, the investors got about a 10% return in 5 months, so not bad for a first project of this size. Looking forward to finding the next one!

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

There was an opportunity to buy the property right and we got a good deal.

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

We found it through a pre-foreclosure list. I met with the seller and helped him stop the auction 2 days before the property was going to be foreclosed on.

How did you finance this deal?

There are two investors I work with who had the cash. They went in on it 50/50.

How did you add value to the deal?

By finding the deal, negotiating the deal, and helping sell the property.

What was the outcome?

The investors made a 10% return so it turned out alright!

Lessons learned? Challenges?

The purchase price can make or break a deal. We can't control the market, and the market started to slow down as we re-listed it. So timing it right, and pricing it right so it would sell was crucial.