Updated about 5 years ago on . Most recent reply
First Flip Completed & It Was Half My Base Salary
Investment Info:
Single-family residence fix & flip investment in Stillwater.
Purchase price: $16,256
Cash invested: $4,709
Sale price: $45,000
This property was an off market short sale, I purchased in Stillwater Oklahoma. This was a small property (600 sq with a 900 sq detached garage in the back.) The property is located 10 minutes from Oklahoma State University.
What made you interested in investing in this type of deal?
I was interested in the deal because I want to make flipping homes my new day job. This property was affordable, fit our criteria, and we had a competitive advantage.
How did you find this deal and how did you negotiate it?
One day, My father in law called me and said he knew someone getting foreclosed on and that she's trying to sell her house before that happens. She told me her situation and her main objective was to not have a foreclosure on her credit. She signed a letter and sent it to her mortgage company giving me full permission to discuss her loan. The mortgage company agreed to sell me the house for whatever it currently appraise for. The seller agreed to sell it for 3k and stop the foreclosed.
How did you finance this deal?
I brought in an equity partner who put up the purchase price in cash. We agreed on an 60/40 split his way.
How did you add value to the deal?
We completely remodel the house. See pictures.
What was the outcome?
The outcome was that we helped a woman not destroy her credit. We sold the house for $45,000. After everything was said and done we took home about 11K. I know that's not a lot but now my wife and I don't live check by check anymore.
Lessons learned? Challenges?
There's too many to name but some of the most memorable lessons and challenges are:
Short sales takes a long time to buy
Add value fast
Have back up money
Good work is worth paying for
Don't fall in love with the deal.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Jared Benson is a real estate agent that was there for me through this process. He was not involved in the deal but he was there for me with advice and encouragement. Such a great guy!
