First Ever Project (Fix&Flip)

[AJ Santiago]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $95,000
Cash invested: $40,000
Sale price: $150,000

First ever project for me and my sister! We acquired the property through a wholesaler, rehab took 2 weeks, went fairly smoothly, hired a kick-*** contractor and a rockstar agent on our team!

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

As a first time rookie investor, we were eager to jump in and decided to take the leap of faith

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

Wholesaler.

How did you finance this deal?

Hard Money and cash reserves

How did you add value to the deal?

Cosmetic upgrades: flooring, interior/exterior paint, trims, moldings, quarts kitchen tops, added a new gas range & vent, added kitchen countertops and storage, light landscaping. lot size is .25 acre so we added a 6ft fence to give new homeowners privacy. converted carport into a garage w/ rollup.

What was the outcome?

Outcame was amazing! Couldn't ask for a better turnout!

Escrow closed after a month. We dove in knowing the margins were very thin, but it was such a learning experience and an eye-opener as to what and how much goes into a project.

The turnout was amazing! Had so much fun with the team. Very excited for whats to come and eager to dive into the next project!

Lessons learned? Challenges?

1. the importance of finish lists (organization, attention to detail, always specify)
2. anticipating delays (shipping, equipment rentals, etc)
3. construction schedules to keep contractor accountable!
4. cash reserves!
5. when estimating costs, pretty much times it by a conservative variance. don't be always hopeful on the best case scenario!