The scariest movie-pit Craftsman property ever purchased

[Michael Nugent]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $220,000
Cash invested: $60,000
Sale price: $335,000

Excellent opportunity with this entry level home in the heart of Riverside. You are just a few minutes drive to Starbucks (in less than a mile), the new 24 hours gym, schools, parks, Home Depot, bakeries, restaurants, orange groves...and the list goes on. This home brings lots of character and tons of upgrades including: New HVAC, roof, energy efficient windows, flooring, bathrooms (with tasteful vanities and Italian plank tile), upgraded plumbing & electrical...etc.

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

This deal was sold to me in conjunction with another property on the same street. So the money making opportunity was in selling both.

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

Western acquisitions in Corona

How did you finance this deal?

I put $100k down through a hard money loan at 10% APR over 12 months and paying 3 points on borrowed moony plus a $800.00 underwriter's fee.

How did you add value to the deal?

I practically had to fix EVERY frigging thing on this house. It was a pile of trash which took me for ever to fix. I really had to micro-manage this deal and sub-contract the heck out of it. Every material was found on the Craig's list, Facebook market and Home Depot clearance rack. I had to do some of the labor work myself. We really made this one look extremely attractive and even fixed up an un-permitted unit in the back, added new HVAC, reinforced foundation, added a new roof, windows & more

What was the outcome?

The out come was relieving. We received multiple offers the 1st week and sold it for more than I expected. We made about $22,000 after all costs associated with purchase, loan, rehab and sale.

Lessons learned? Challenges?

Bring your contractor to look into everything or LEARN about what to look for. Get your budget right from the get go. Look at a property from different angles. The only issue her is that wholesalers don't give you any time to really look into the properties they sell you. It is like walking on mine-bombs. You really have to use your experienced eye (and if you don't have one hire one).

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

I use Secured Income Group for the hard money loan. They are always so easy to work with. They are not the cheapest but they will take care of you.