Fix & Flip project (my first official)

[Karen Spriggs]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $66,000
Cash invested: $28,000

The fix project was completed in just over 4 weeks but that was in the middle of the pandemic. Lots of potential buyers have looked and loved the house but have financing issues or do not care for the location (west of Charlotte; one neighbor across from street has junk in yard). House was a foreclosure and I negotiated with the bank for purchase (including allowing inspections prior to finalizing offer). Two offers; both wanted closing costs paid for. 

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

Found the deal for a friend living in the area. It ended up taking a life of its own as I met the investor who bought the house next door and connected well with (and their team).

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

Bank foreclosed property. Had contact/dealings with same bank for another property.

How did you finance this deal?

Whole life insurance policy (highly recommend this!) for most of the amount; credit card loan (0% interest for 1-1/2 years) and one private money lender.

How did you add value to the deal?

Restoring the house -- adding new HVAC system, resurfacing all walls, painting, replacing light fixtures, and all appliances; carpet, crown molding, etc. All new plumbing fixtures; replacing wood on deck and repainting exterior (trim). Cleaning up. It also came with vacant adjacent lot on which we will be building new construction.

What was the outcome?

Two offers...both had changes (their finances).

Lessons learned? Challenges?

Selling in the middle of a pandemic changes the game plan! Sometimes it is better to let go of what you hope to get and just go with an offer that is okay but not the best.

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

In process. Likely, I will recommend.