First flip complete!

[Jesse Dickens]

Investment Info:

Single-family residence fix & flip investment in Denver.

Purchase price: $254,000
Cash invested: $125,000
Sale price: $425,000

This project had just about everything come up on us; from asbestos, to a complete overhaul of plumbing/electrical, to firing 3 subcontractors.

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

Wanted to get my feet wet with a local flip.

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

Found it through a local wholesaler who is well respected. They allowed an escalation clause on the offer, so we were able to come in at a price that made sense for us, and it was accepted!

How did you finance this deal?

Hard money.

How did you add value to the deal?

I was the money guy. I partnered up with a GC who also does flips, but he needed someone to come in the they down payment and rehab costs.

What was the outcome?

We lost a good chunk of potential profit to being quite a bit over budget and over our timeline, but still ended up walking with about 30k.

Lessons learned? Challenges?

I learned so much about myself through this deal! I know that flipping is not the long term solution for me. I am up for doing another one at some point, but cash flow is the solution for me. I also learned what types of partnerships/operating agreements I want/don't want. I also will never get in to a deal with a partner who doesn't have any skin in the game.