1st flip pain and loss of momentum of my core business

[David Yoder]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $33,400
Cash invested: $33,400
Sale price: $107,200

This is my first official flip.

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

I was originally going to finance this as a long term rental but near closing they wanted to charge me a double digit interest rate...

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

I was mailing on code violation list.

How did you finance this deal?

I cleared out some retirement funds.

How did you add value to the deal?

I completely remodeled it.

What was the outcome?

1st flip completed.

Lessons learned? Challenges?

This was a painful learning lesson. The biggest mistake was using my actual money not a hard money lender. This cashflow crunch soaked up WAY too much capital and I made a shortsighted decision on a different property that cost me at least $8k. I definitely still made money but I could have made more wholesaling then managing this one. I won't be entertaining another flip until I have a trusted, organized skilled laborer.

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

Corey Barnes