Avondale 2 Unit Fund and Flip

[Michael Kevorkian]

Investment Info:

Small multi-family (2-4 units) other investment in Chicago.

Purchase price: $300,000
Cash invested: $60,000
Sale price: $375,000

Purchased off-market direct from owner. Tried to wholesale to the list but no luck. Decided to fund it with a hard money lender and list it as-is on the MLS. Sold it in a week to another rehabbed for $375,000. The cash invested is actually the downpayment amount needed for the hard money loan and was not used for renovation.

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

Great neighborhood with a lot of new construction and renovation in the area

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

Direct mail to owner and the deal was negotiated on the phone in a single call. Sent the contract for signature and got the deal locked up same day.

How did you finance this deal?

Hard money

How did you add value to the deal?

Bought it right

What was the outcome?

Sold to a rehabber

Lessons learned? Challenges?

I need more lenders who understand this business and how fast these deals turn. Unfortunately most of the ones out there require huge down payments which limits how many of these can be acquired at any one time depending on the cash available at the time.