Major Fix/Flip project in Houston TX

[Yancy E Mattheis]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $130,000
Cash invested: $185,000
Sale price: $384,900

A 1930's Sears Roebuck Catalog home that was completely renovated. Included a 2 bed apartment in the back.

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

It's part of my overall Real Estate Investing strategy and it was a great house in a great location.

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

It actually took me almost 2 years to close on this house. It belonged to a co-worker that became a great friend over the years. He finally decided it was time to move on, and so he wanted to sell it to me because he knew that I would turn it into something for the next owner to enjoy.

How did you finance this deal?

Hard Money was the bulk of the financing.

How did you add value to the deal?

We basically rebuilt the overall interior layout after we ran into some major issues. That and deciding to also fully complete the garage apartment, which was not in the original plans. This made a significant difference in being able to sell the house and also get the price we did.

What was the outcome?

Fantastic. Our contractors did an amazing job and their quality of materials and workmanship made it look like a brand new home.

Lessons learned? Challenges?

Always play for the unexpected. Have good relationships with your contractors and lenders, and make sure to always do the right thing by them and with them.

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

Lenders - Blink Lending. Paul Lamnatos and Gabe Lukish
Contractors - Diamond Brothers Development. Jonathan Manning and Joshua Lester
Realtor that Sold Property - Morad Fiki