My First Flip - 467 Steinway Road

[Wade Bartels]

Investment Info:

Single-family residence fix & flip investment in Lincoln.

Purchase price: $85,000
Cash invested: $45,000
Sale price: $169,000

The first project I ever did was a flip that some friends asked to partner on.

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

My friends were swamped but still wanted the deal. They didn't have the time or money to make it happen so I went in on it to help make ithappen.

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

My partners found a wholesale deal that didn't work for them, traded another investor for one that worked better for them.

How did you finance this deal?

The other investor closed on it and resold it to us with an 18% interest only hard money loan.

How did you add value to the deal?

Major rehab of the whole house. All new flooring, paint, lights, bathrooms, kitchen, exterior, roof, etc...

What was the outcome?

Net $30k profit ($15k per partner).

Lessons learned? Challenges?

Don't be afraid to fire your contractor and shift our strategy. Some things are easier to pay someone to do. Don't underestimate how long things will take. Don't put your knee on top of a stove, it breaks. Masking tape is the devil, just learn to edge without it.