JV, Split, and Flip - $20k Invested for 20x return

[Jake DiSabatino]

Investment Info:

Small multi-family (2-4 units) other investment.

Purchase price: $365,000
Cash invested: $15,000

Bought four older homes in town with some land. We used a JV partner for most of the cash at closing. The rehab of the four homes and the engineering for entitlement of the land are in process. Next up is to finish rehab and entitlement. Then we'll sell the four homes independently and sell the entitled in-fill subdivision (8-10 lots) to a builder for completion. Updates to come.

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

A mentor who made a living on this style of investment.

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

Off-market, verbal negotiations.

How did you finance this deal?

JV Flipper Partner ($350k private money) and a little cash ($15k) to close.

How did you add value to the deal?

Marketing, Negotiation, DD, Subdivision, Entitlement

What was the outcome?

TBD - Estimated 20-30x Return

Lessons learned? Challenges?

Subdivision of older properties can be challenging. Locating the right flipper partner.

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

No RE professionals were involved except the attorney.