Single-family residence fix & flip investment

[Darrell Jordan]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $134
Cash invested: $35
Sale price: $240

This was a fix & flip. I renovated a brick ranch. Sold it within a month at list price. Made my profit objective.

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

The deal was great. And the property showed a lot of promise. The owner wanted to get out of it. So, I her cash, did a "subject to," and acquired private financing to renovate it. Overall, a great experience.

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

Found out through a relative, and negotiated a win-win. The owner was getting old and wanted to live with her daughter, but didn't want (or have the means) to fix it up for a realtor.

How did you finance this deal?

Used personal funds to acquire the deal, acquired the mortgage via "subject to," and acquired private lender funds to renovate it.

How did you add value to the deal?

I operated as the general contractor to learn and to save money.

What was the outcome?

Excellently! We sold the house within a month of listing it at list price.

Lessons learned? Challenges?

Learned how to contract with contractors; learned the various degrees of skill, professionalism and integrity of contractors; learned how to open rooms up and add a bathroom. The main challenge was working with some of the contractors ... this was my first experience.