We found a property investor from NV in a Craigslist ad. Turns out he had a property perfect for a fix and flip. We got a look inside and decided that it had enough potential to buy. We talked to some local realtors to see what it's market price was in good condition, and felt as though the profit margin was worth pursuing. Doing most of the work ourselves. Will update upon sale.

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

I was looking for cheap value-add opportunities to build some capital for more upcoming commercial purchases.

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

I found a phone number seeking ND investors via a Craigslist ad. After calling the ad I soon found out that it belonged to one of the top ranked property holders in Minot, ND. He was an investor from NV and had been in the game for 40 years, now he is liquidating his national portfolio to keep it local with his Vegas investments. He had 20 properties to pick from, but I was drawn to this house, as it had the most value-add potential. I negotiated it down to 60 from 80 by offering a cash deal.

How did you finance this deal?

We put some equipment up as collateral and got a $60k check from the bank for the purchase.

How did you add value to the deal?

We added an egress window to the downstairs room, and added a half bath downstairs as well. We are also gutting and rebuilding the kitchen to open up the space, as it was very cramped before. Updating floors, paint, exterior repairs, adding a fence, and some minor landscaping.

What was the outcome?

Still working on it, will update this spring!

Lessons learned? Challenges?

We found a roof leak that lead to a lot of added work, as well as a few more structural items that needed to be addressed. Fortunately it didn't ruin our profit margin, but we did learn more of what to look for when analyzing a property. The best part is, I developed a relationship with a successful real estate investor who since offered to help finance some of his other properties as he is looking to retire, and I can leverage his knowledge and experience to build my future.

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

We found an amazing Agent that had sold a house identical to ours in the same neighborhood. She has been amazing in terms of recommending what buyers are looking for, so that we can flip our house to suit the market. We also had a GREAT experience with the title company. In ND, they handle every legal aspect of purchasing single family properties.