What I thought I would Flip

[Alex Coffey]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $38,000
Cash invested: $30,000

2 bed 1 bath S.F.R

What I thought would be a good little flip turned out to be some good lessons learned

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

It fit into our buying criteria. I put it through our buying formula the numbers made sense

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

I found this from our marketing efforts. I do a lot of Direct To Seller So we are walking avg 3-5 houses a day.

Seller wanted 10k more. "They always fear the walk out!" (George Costanze Voice)

easiest way I can put it, If you are certain in your numbers then you can use it as leverage. he who has more certainty wins

How did you finance this deal?

I used 3rd party lending I just used my money for the gap funding.

How did you add value to the deal?

Forced appreciation. There wasn't really any room to add another bedroom per say. I found out that back in the 50s it use to be a flower shop which I thought was cool .

What was the outcome?

I've owned it 14 months now
It wouldn't sell for 100,000 when I was finished which kinda sucked at the time because reserves were really low so I wasn't happy at the time but in the end I am happy with how it is turning out

it just appraised for $125,000

Lessons learned? Challenges?

1. I didn't check if it was in a flood zone ...Minor head ache but that didn't bother me because history showed area hasn't flooded in over 15 years.
2. No matter what hiccups arise the mission must go on.
3. get better at my under writing

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

not on this one.