Hoover, my first flip: Great deal. Terrible contractor.

[Kevin Garcia]

Investment Info:

Single-family residence fix & flip investment in Los Angeles.

Purchase price: $200,000
Cash invested: $50,000
Sale price: $300,000

I helped my friend to invest. He would buy the house, put the money, and I would oversee the entire rehab process. 50-50.
As the real estate agent, I was in charge of representing him both as the selling and listing agent.
My very first flip, it was awesome, it was fun... and at times a nightmare! But oh it was so worth it!!!

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

$

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

Found it on the MLS, called the agent, and told them we were really interested. They were easy to work with.

How did you finance this deal?

My friend bought it and put the money to rehab it (though my dad and I put money into it too).

How did you add value to the deal?

New kitchen, new paint throughout, added a room, new carpet, landscape, new windows.

What was the outcome?

$50,000 return on investment ($25,000 each).

Lessons learned? Challenges?

Hire a competent contractor. Cheap=costly in the long run.