New construction on Existing Foundation Sold in 5 months!

[David Michael]

Investment Info:

Single-family residence fix & flip investment in Hasbrouck Heights.

Purchase price: $252,000
Cash invested: $210,000
Sale price: $750,000

This old colonial was bough at auction. After dealing with the hoarders, redevelopment started on 10/1/19. With a great winter and a contract on the property in January I sped through to closing and collected my payday. '

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

My speciality is new construction so it was in my best interested to purchase along with the purchase price being attractive.

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

It was a sheriff sale. There was a bid for the house that started at 230.

How did you finance this deal?

Although I had the capital to do this project in cash I choose to work with Accolend to provide Draw loan. The redevelopment of the home was with my capital. The purchase was with Accolend. In order to not pay more in fees I also drew 70K from Accolend.

How did you add value to the deal?

I took a 3 bedroom one bath colonial and turned it to a four bedroom three bath magnificent home that sold off market. I have redeveloped several in Hasbrouck Heights. The beauty of the house, I was able to bring buyers from another deal via an agent in town to get a contract and sell off market.

What was the outcome?

I sold as I finished the home. Didn't deal with too much inspection issues as the house was new and the time constraints.

Lessons learned? Challenges?

The lessons I learned was to manage my crew better. Time the material deliveries better.

Challenges was in the beginning in dropping material on a 50 foot wide lawn.

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

I worked with Robert Faussette & Maria Bonsignore to facilitate the closing of the deal. Accolend provided my funding and were a valuable asset to my team