Current Fix and Flip - Indianapolis

[Jason Kent]

Investment Info:

Single-family residence fix & flip investment in Indianapolis.

Purchase price: $100,000
Cash invested: $35,000

Single Family 3/1 with minimal attic space, only about 1400 useable sq ft. - Building up on the back half of the house, adding a full 2nd story with 8' ceilings throughout. - Project has been delayed due to Covid19 and Architect and GC issues, but we now have permits, and have started demo. Hope to have it completed and on the market at end of July / Early August as a 4/2.5 with just under 2100 sq ft.

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

Good spread - pre-covid were expecting about 40K profit on a 320K ARV

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

MLS - offer / counter offer

How did you finance this deal?

HML

How did you add value to the deal?

adding 600 plus sq ft - complete gut / remodel - adding bed and baths.

What was the outcome?

In Progress

Lessons learned? Challenges?

Working with the city during Covid 19 is rough. Also have added one architect and one GC to my 'do not work with anymore' list due to lack of communication and followup on their side.

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

Temple View Capital - good HML so far - pretty responsive on all fronts - they do require that you have owned a house before (personal residence is OK)

[Jason Kent]

Originally posted by @John Rankin:

Hi Jason, what kind of terms did you get with Temple View Capital?

Hi John....

This was 6 months ago.   So who knows now... but 2pts. 9.5%.  Funded 80/100.....

But they roll 9 months of payments into the loan so that sorta effectively adds about 1% to the rate.

They also wanted 3 months of payments up front

BUT, they also advance rehab draws... so that's a huge plus in being able to keep contractors paid / moving / happy... especially if you don't have a lot of cash to float in between contractor draw requests and when the HML request comes through but you are using one that doesn't advance.