Two months to Purchase, remodel, relist, and SELL!

[Jesse Martin]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $157,743
Cash invested: $7,594
Sale price: $197,500

3/2 1686sf in a nice neighborhood right next to a college. One of the best and quickest deals we've thrown together! This was a VA foreclosure that was sold but fell through. This is the reason you keep great relationships with brokers...Received a call from a broker I have done deals with, and she knows I pick up properties quick close, and we have done a few deals together.

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

We are always looking for Fix & Flips, we have a nice set up where brokers send deals to us as they know we will buy.

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

VA broker called us when the deal fell through to see if we were interested. Went and looked at the property, submitted my offer 15 min later and our offer was accepted. The next day she had 3 other offers, so we know we were justified in moving quick!

How did you finance this deal?

We were originally going to traditional finance the property, but after further investigation if we would buy the property with cash, we could pick it up 28 days earlier, and most important we would save approximately $4000 in closing and holding costs. Oh, almost forgot one of the coolest parts...since I'm a real estate broker in this town, I kept my commission in the deal and at closing received a check for $4,840.50! Not a bad day to buy a house and receive a check...

How did you add value to the deal?

We remodeled this property in exactly 2 weeks. Some of the Items we remodeled, New carpet throughout, new sink and faucet. New disposal, repaired some cracked tile, minor plumbing repairs, new light fixtures in entry, and dining. Entire re-paint and hole repairs, hot water heater Elements, new door handles throughout, and exterior. A typical paint and carpet rehab.  Relisted the property 2 weeks and 1 day after purchasing, and we were under contract 5 days later!

What was the outcome?

Now for the numbers:
Purchase Price: $161,350 - Commissions of $4,840.50 received and rolled right into the property so actual purchase price $157,742.94
Rehab Cost: $7,594.49
Holding Cost: $129.67

List price: $198,000
Sold Price: $ 197,500
Selling costs + concession: $11,104

Total Profit: $20,933.91 - Not bad for two months

Lessons learned? Challenges?

Buy fast and sell fast!

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

Worked with one other broker, and I am a broker as well