This home is in a low income area where nearly all buyers are either investors or low income coming with FHA financing and needing closing cost assistance. Everything about this home was great except for the master shower was a wreck, it was filthy, and that the kitchen is dated but the shower made it unable to get a typical loan FHA or otherwise and nobody seems to know about rehab loans around here. The seller did not have the cash to do the repairs so I jumped on it as my 1st personal flip. It took a fresh coat of paint, shower rehab, 8 hours of hard cleaning and some minor repairs for a grand total of $4200 in repairs and we are closing Friday for $125k.

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

I typically sell these to my investor clients but the ones that typically are interested in these did not have the funds available at the moment and the ones that typically don't want to invest in this area or price range passed. I saw the value and since the seller owned it free and clear I was able to get them to sell it to me 100% seller financed and only had to come out of pocket for the repairs.

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

Seller called me from a referral to list their home for sale.

How did you finance this deal?

seller financing

How did you add value to the deal?

Seller carried 100% financing, I funded the repairs. We split the profit 50/50.

What was the outcome?

We each net about $17k additional profit. Seller made roughly 20% extra for waiting 2 months to collect his money and I made 400% on my cash investment.

Lessons learned? Challenges?

There are almost always ways to make a deal you just have to see the value, be able to show the value to the other person, and come up with a creative solution to make it happen!

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

Myself, my handyman, and my preferred title company.

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My 1st personal flip

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