Stuck in the past no more!

[Georgui Kasaev]

Investment Info:

Single-family residence fix & flip investment in Athens.

Purchase price: $97,500
Cash invested: $50,000
Sale price: $220,000

This was a beautiful home with great bones and in need of updates.

1. Paint exterior and interior.

2. Gutted the entire house replaced paneling and popcorn sealings with drywall.

3. Raised the sunken living room floor to be on the same level as the rest of the floor in the house.

4. Changed the location of one of the water heaters to provide room for extension of the bathroom in the master. Rebuilt the master bathroom.

5. Opened load-bearing walls to create an open floor concept.

6. Gutted the entire kitchen to increase the size and install concrete countertops. New everything.

7. Rebuilt that second bathroom from the ground up, changed the tub into a walk-in shower for a mother-in-law suite.

8. Increased the size of the hall bathroom.

9. Landscaped.

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

I am currently concentrating on flipping. Working on building up my nest egg so I can start buying to fixe and hold.

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

This deal came to me through networking. I negotiated the deal with the seller. I offered him two options one where he could stay in the deal as an equity partner and split profits with me and then the other where I bought it from him outright with cash. The seller chose to go with the second option.

How did you finance this deal?

Cash. Brought in, two partners.

How did you add value to the deal?

I supervised the project. Gutted the entire house, moved walls, raised living room flooring, rebuilt all 3 bathrooms to increase size, rebuilt the kitchen to increase utility and size, painted the entire property in and out, installed base and crown, landscaped.

What was the outcome?

Profit for all parties involved!

Lessons learned? Challenges?

1) Never hire any subcontractor by the hour.
2) If you are going to list a home before completing the work then you have to clearly outline what changes if any the buyer can request prior to completion.

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

I am a REALTOR in Athens Ga. I represented us in the sale. I listed the home before it was finished on a Friday had it under contract next Monday. I would recommend any new investor or home buyer to work with me.