Flip that didn't necessarily flop ;)

[Jennifer Hoover]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $34,000
Cash invested: $48,000
Sale price: $147,000

2800 sq ft Victorian top-to-bottom remodel

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

I showed the property to several investors and all the folks looking at it were clearly not going to do justice to the highest and best use of the property, neither for the property itself or the community at large. I felt it needed to be restored appropriately.

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

Via the MLS as a Fannie Mae.

How did you finance this deal?

I called in an investor to put up the original purchase price for a return of his original investment plus a percentage of profit at sale.

How did you add value to the deal?

The cash backer for this deal is also a contractor, so he did the roof replacement with payment for the labor coming out at sale. I only had to pay up-front for the materials, he got a quick additional roof job.

What was the outcome?

This one came out gorgeous, and sold fairly quickly at a price we were ok with and paid everyone out well.

Lessons learned? Challenges?

My mother had a stroke a month in to our work on this project, and it threw my timeline WAY off track. I learned that it was a huge value to have a contractor and investors who were flexible on the timelines, and to set up contingencies for emergencies like this in future deals. I also got a reminder about not over-improving a property for the market it's in. It was worth it though, since I learned a ton doing the restoration pieces (not just a rehab) and I was really proud of the end product.

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

Yes... me! I'm a licensed real estate agent and have lots of experience with both bank owned and Fannie Mae properties so I was able to easily navigate the process from negotiation to closing. I find some agents locally are not very familiar with how to communicate or navigate in these types of sales, and because I could, I was able to represent myself in the transaction quickly and efficiently.