So many lessons learned on this flip!

[Grace Widdicombe]

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $88,000
Cash invested: $138,000
Sale price: $252,500

This was a very ugly duplex, one-side was built in the 40's and the other side in the 60's with a garage between the two. It was a seller-financed deal, but the problems with the initial contractor was quickly sinking the deal.

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

I was super excited about the deal, because the seller was willing to finance the sale of the property. It needed a lot of work, but I thought I could handle it.

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

The seller found me via my website and I answered the call right away. He said the magic words, "contract for deed".

How did you finance this deal?

So the purchase was seller financed, and the repairs were financed through my cash reserves and a HELOC loan.

How did you add value to the deal?

Totally gutted the old half, put insulation in through-out, and rebuilt an open concept little 2 bed-1 bath unit, added siding, and new windows. The other side needed just new floor, paint, windows and appliances.

What was the outcome?

I scraped out a net profit in the end.

Lessons learned? Challenges?

I could write a book on the lessons learned on this flip, from hiring to firing several contractors. Brad Larsen - GC saved me by watching over the contractors. The first thing I learned that if you have a seller financed purchase, the hard money lenders don't want to be in 2nd position. So structure the deal so that the lender is in first.

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

Brad Larsen - General Contractor, Alex Vincent - General Contractor,