KH Designs - 40 Holiday Lane

[J Womack]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $120,000
Cash invested: $62,500
Sale price: $229,000

This was my first flip. Purchased it before it hit market through agent from an elderly couple moving out to hospice. Overall the house was in pretty good shape, but we did get surprised by more repairs than expected on the roof, termite damage, additional electrical and plumbing. Overall, it was a good learning experience and I walked away with a decent gross profit. After commissions, it's modest but still a win.

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

I wanted to get started.

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

Agent brought it to me before it hit the market.

How did you finance this deal?

Hard Money - first deal premium.

How did you add value to the deal?

Totall rehabbed, including electrical upgrade, new roof, etc. Intentionally over-invested (a little bit) to test out team, finishes, etc.

What was the outcome?

We got 6 offers and will sell for 4K above asking.

Lessons learned? Challenges?

Lessons Learned:

1) Walk through with your contractor before making an offer to spot problems and to tighten up your offer;
2) The calls come when you open the walls - contingency is important;
3) Having a good contractor makes life easier;
4) Keep receipts for everything - got my CO in the final hour because we could prove door from garage was solid wood;
5) Take a moment to enjoy the process.

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

Hard Money Bankers - Ian Walsh (closed when no one else could)
Ellen Moody, Weichert Realtors (Moorestown, NJ) - very experienced realtor who knows the codes, knows the townships/boros