My First Ever Fix & Flip!

[Nate Turner]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $272,000
Cash invested: $40,000
Sale price: $375,000

We used seller financing to acquire the property for $272k. Then a partner and I put in about $40k on a total rehab. We're currently in escrow to sell for $375k. We should close escrow in the next two weeks.

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

I have always wanted to fix & flip and when this one came up, it seemed right. Then when I called my potential partner to ask if he was interested, he loved it to.

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

Through my real estate agent business. One of my estate planning attorney contacts brought it to me to help his clients with. As far as negotiation, I made the sellers aware of all their options and let them pick their favorite, which happened to be sell to me. After we agreed upon a price, we realized the entire roof needed to be replaced so I asked the seller to split the roof cost with us, which they did as a reduction of sale price.

How did you finance this deal?

We used seller financing.

How did you add value to the deal?

I found the deal and sold it since I am licensed agent, we avoided seller agent commission. Plus brought the market knowledge knowing what to improve and to what extent.

What was the outcome?

We sold it prior to putting it on the MLS and for $5k more than we had comped it at after repairs.

Lessons learned? Challenges?

We under estimated our rehab budget slightly. I learned personally to be a bit more aware of the day to day happenings on the property.

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

I am a professional agent.