Major fix and flip PLUS extra Lot worth 175k

[Jay Hinrichs]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $535,000
Cash invested: $150,000

SFR Major remodel Plus extra lot

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

WE determined using our patent pending software that the extra lot coming with this home was buildable per city of Portland code. We are able to determine this in a matter of minutes with our software.. thereby being the first to make an offer compared to others that will have to try to figure it out at the city etc.. which can be time consuming and very tough

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

Broker contact Listing agent knows we know what we are doing with these types of properties.

How did you finance this deal?

150k cash down our favorite local HML on this one funded the balance.

How did you add value to the deal?

we will do a 200k reno to the house sell it for the mid to high 800s and then we will sell the lot as is for 175k..
so looks to be 100 to 150k profit on a normal flip and a bonus of 175k profit for doing nothing more than finding this hidden lot and determining it was buildable using our systems.

What was the outcome?

just closed.. but we expect at least 250k profit in 6 to 7 months on this one.

Lessons learned? Challenges?

Our software for finding hidden lots of record that are not on the GIS system is how we determine were we can mine for gold.
this system is so robust.. and we have determined the same laws apply in MANY cities in the US.. so looking to take it across the country.. We do this in cities in WA currently and in Indy same laws. I like having a system that no one else has or they just don't know how to find this stuff.. its not online.

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

yes RE broker for the deal Local HML for the loan.. I am at my limit with my local bank so we pay a little more but there is so much juice in these deals the extra financing cost is irrelevant.. this is the 16th one of these we have done this year..

[Jay Hinrichs]

Originally posted by @Brian Ellis:

Nice! How do I get my hands on this software ?? Sounds like a goldmine for a select few until everybody can get there hands on it. 

Yup in the markets it works in its going to make those who use it some big money and I mean big..  you know how to get me.