First Fix and Flip Deal

[Garreton Smith]

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

[Garreton Smith]

@Nikolay V. Great question! This deal was actually pretty crazy. I was on Hubzu looking one day. I found this property, did a quick review, and compared comps. Told myself it would be a good deal, and I legit just bid on it just to see what would happen. I ended up winning the bid! Now I'm like Holy Crap I don't have 95K to close on this haha. That's when I found the money. I just jumped in and figured everything out on the way! I wish I could do a deal deep dive for this deal lol.