What About That One?

[Jonathan Davis]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $135,000
Cash invested: $30,000
Sale price: $215,000

What About That One?
While driving for dollars I explained to my wife that people aren't doing for sale by owner any more and at that exact moment we passed a "janky" sign in someone's yard and she said "what about that one?" Unbelievable!! I called and the rest is history.

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

Taking the first step in escaping the "rat race" by building capital for future buy and holds.

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

Driving for dollars, the seller had a generic sign in the yard and I called him. He had been jerked around by a couple of different wholesalers, so he was ready to sell. I asked what it would take to buy the house. He gave a fair price and I put it under contract that evening.

How did you finance this deal?

100% loan with local bank. Interest only for 1 year.

How did you add value to the deal?

Rehabbed the entire inside and made minor improvements to the outside. This was previously a rental for 5 years, so it needed a lot of cosmetic work.

What was the outcome?

It took a few weeks to close as "buyer" due to Covid. I closed at the end of August, had it rehabbed and under contract at the end of November - I just closed at the end of January as "seller".

Lessons learned? Challenges?

I had a difficult time finding a contractor that could complete the work in the time frame I wanted. I ended up doing much of the work myself and I do not want to do that again. The challenge was finding balance in my family life and completing a rehab like this one. I didn't have a backup contractor, but I will in the future.

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

I worked with Kevin and Alli Clark with Keller Williams. They were fantastic! They provided excellent input on what to rehab and what to leave alone; their advice and negotiation experience helped me attain the profit I wanted. I would recommend them to anyone looking for top-notch, responsive agents in the Memphis area.