Quick and easy flip!

[Collin Corrington]

Investment Info:

Single-family residence fix & flip investment in Lavernia.

Purchase price: $206,500
Cash invested: $13,767
Sale price: $305,000

GREAT FLIP!
A home about 30 minutes outside of San Antonio in a booming little town. This house had been vacant for some time but was in overall good shape. Without a doubt my easiest flip!

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

It fell in my lap! There was too much equity on this property to say no =)
As a matter of fact, I was very short on cash with my other deals going on it made purchasing this one tricky. But hey, you find the deal and you'll find a way =)

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

A realtor called me about this house that had been vacant for 4 years. The matriarch of the family died and they just never did anything with it. However, one of the sons would go by and check on it weekly so it was in better than decent shape.
Negotiating was fairly easy. They had let the statute of the probate run out so there were some title issues. I told them I would tackle all that but knew it would take time and energy.

How did you finance this deal?

Hard money.
4 pts and 12%. They also financed most of the rehab. It was more than I wanted to pay but he allowed me a low downpayment and rolled the points onto the back for me.
I was light on cash with all the deals I had going on at the time but knew this was too good of a deal to pass on.

How did you add value to the deal?

A ton of landscaping (removal of overgrowth mostly), a new roof, new water heater, new paint, new counters, and a few other small fixes and she was ready to go.
I could have taken it further and gotten a little more. However, I decided to just get it out there quickly. Never even had to put it on the market. I let the realtor that brought it to me preview it, and we had an offer. This turnaround was so fast I never had to make an interest payment on my hard money.

What was the outcome?

I was in for almost $14K. Deposited over $40K when I was done. So nearly a 200% return in about two months.

Lessons learned? Challenges?

1. You can negotiate payment terms with Hard Money guys as long as you can show them the vision.
2. Love on your Realtor friends. They can bring you some gold!
3. Keep local Realtors abreast of your progress, you may be able to get out of the deal quicker this way.
4. Don't underestimate the power of landscaping and paint. The majority of the budget went towards this. Made the house look completely different. Many of the neighbors would come to tell me they didn't recognize the house.

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

Texas Quest Capital.