First Joint Venture Flip

[Kristopher Kyzar]

Investment Info:

Single-family residence fix & flip investment in Hampton.

Purchase price: $50,000
Cash invested: $27,000
Sale price: $172,000

Contributors:
Jonathan New

This was a joint venture flip brought to me by a colleague. The house was already mostly gutted by a previous investor. We opened up a wall downstairs, added a bath upstairs, a half bath and a laundry room downstairs. Completely redid plumbing and wiring to make it like new. There were some challenges with the appraisal for the sale, but it all worked out. It sold within a couple of months of listing. Turned out great!

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

Flipping as a means to build capital for buy and hold investing.

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

Brought to me by JV partner.

How did you finance this deal?

Hard Money with cash down payment.

How did you add value to the deal?

New wiring and plumbing, added bathrooms and laundry room, and opened up the floor plan. Basically a brand new house.

What was the outcome?

Sold!

Lessons learned? Challenges?

Appraisals are challenging sometimes. Also, hard money eats into profits.

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

Erica Osborn and the Think Real Estate Team. They are true professionals!