Updated almost 5 years ago on . Most recent reply
First Fix and Flip Deal
Investment Info:
Single-family residence fix & flip investment in Albany.
Purchase price: $94,000
Cash invested: $60,000
Sale price: $225,000
My first fix and flip deal! Single-family needed to be gutted and updated. From the flooring to the walls we replaced everything!
What made you interested in investing in this type of deal?
A goal of mine was to complete two fix and flips deals for 2020. I wanted a deal that I could add a lot of value to.
How did you find this deal and how did you negotiate it?
Online Auction Hubzu.com. No negotiating
How did you finance this deal?
Hard money lender. 30% down LTV
How did you add value to the deal?
We gutted the property and added everything new. Walls, floor, kitchen, bathroom. I have a before and after video
What was the outcome?
Flipped for a little less than expected. But still made a profit.
Lessons learned? Challenges?
Ugh, where do I start?
1. Always check plumbing and electric work first. I thought I lived in a world where a property that's been vacant for 3 years needed no plumbing or electrical work. I found out quickly I wasn't being realistic.
2. Never overcompensate the contractor, I paid a lot upfront and he started dragging his feet. I fired him halfway through the process. Always have a backup plan.
3. Time is money, be smart when starting rehab. Adhering to timelines!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Trevon Williams Albany, NY Realtor
Most Popular Reply
Congrats on the success @Garreton Smith. How hands on were you during the rehab process?