Flip Franklin amazing experiance

[Christopher Orr]

Investment Info:

Single-family residence fix & flip investment in Pueblo.

Purchase price: $75,000
Cash invested: $35,000
Sale price: $195,000

An amazing time. I got to spend so much time with my family during this project. I had just gotten off of active duty Air Force. To go from seeing my family a few times a year to seeing and spending quality time with them every day, wow. I bought this house on a for sale by owner. We did all of the work outside of the sheetrock, windows, sewer clean out, and AC. I cant imagine getting away from my family again, this was an amazing learning experience. if i didn't make a dime id be happy with this project. I did make money so it's a win win.

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

My grandfather is the one who got me really thinking about doing real estate and especially flipping a house.

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

My grandfather found this deal thru his church. I ran the number on the Bigger Pockets calculator after running some comparable homes that have sold in the area. Me and my grandpa met the owner of the house son in law to walk thru the home. Me and my grandpa stepped outside to talk for a few minutes about what we saw and the amount of work it would take to get the house in a sellable state. We felt like it was a good deal and we can move forward. We offered 75k on the drive way, and shook hands

How did you finance this deal?

I tried to get some traditional financing thru usaa. everything was going good until the week before closing when usaa said they cant do the loan. So I asked my sister if she wanted to go into the house with me. The terms of the loan being what ever her percentage of the overall cost ends up being, is the percentage of the profit she gets. For example total cost 100k she's in 20k, she gets 20% of the profit.

How did you add value to the deal?

Starting in the kitchen. new counters, new appliances, painted cabinets, opened up a wall, moved the laundry to downstairs adding a huge pantry to the kitchen. the rest of the upstairs got new flooring new paint, and a tile shower. the downstairs got a sheet-rocked made the bathroom usable, new shower, new toilet, new vanity, added the laundry room. new exterior doors, new windows, new fixtures. the downstairs was the biggest change to the house.

What was the outcome?

I learned so much and love working with my family and made money win win win. what a great experience. something I think needs to be talked about more i provided a nice home for a family to grow up in.

Lessons learned? Challenges?

The work will take longer than planned. It will go over budget. There will be surprises like needing to install a double sewer clean out the day before the contract gets signed. lesson learned I tried to sell this house for sale by owner for a month only tire kickers, and i did a open house the only people that came was my family. haha. Asked for a realtor to help under contract less than a week.