My First Real Estate Property (20 years old!)

[Bailey Kramer]

Investment Info:

Single-family residence fix & flip investment in Fox Lake.

Purchase price: $85,000

This is my first property ever!! I purchased it with my partner Frank and with the help of 2 private investors. We bought it with the inside completely gutted: so our plan is to fix it up and sell it! We bought it for $85,000 (cash) and are putting $30,000 into the place. Our plan is to sell it for $170,000. Stay tuned for more updates!

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

We found this deal OFF MARKET! The property was vacant and after cold calling the owner, we learned that he was in the process of flipping the place himself: the only issue was that he needed his cash out ASAP and that's where we came in! We were able to offer him a cash deal with a quick close which was a win-win!

How did you finance this deal?

We financed it using 2 private investors. One came in with the purchase amount ($85,000) and the other came in with the rehab money ($30,000)

Lessons learned? Challenges?

Whatever CAN go wrong, WILL go wrong! I know that sounds negative, but let me explain: there are a million moving pieces in a fix n flip (or any real estate) transaction. While it's important to plan for what you want to happen, its even more important to plan for things that you don't want to happen/things that might happen that you can't control. Always look for the best case scenario, but plan for the worst-case scenario (backup plans, exit strategies, extra budget, etc.)