Fix and Flip Gone Long

[Justin Melendez]

Investment Info:

Single-family residence fix & flip investment in Fayetteville.

Purchase price: $72,500
Cash invested: $25,000
Sale price: $157,000

Fix and Flip

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

When the wholesaler let us walked the home we immediately recognized value. We decided to flip this home in order to build our working capital.

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

I found this deal on craigslist, it was being sold by a wholesaler.

How did you finance this deal?

Cash - I partnered with my brother for a 75%/25% split.

How did you add value to the deal?

Complete renovation.

What was the outcome?

We were able to successfully flip this home. Due to the supply contraction in our market, we were able to get $30,000 more than we originally planned to get on our ARV.

Lessons learned? Challenges?

There were PLENTY of lessons learned on this project. I'll focus on the most tangible, TERMITE DAMAGE. Never underestimate the amount of damage those little suckers can achieve. Going into the deal we knew there was termite damage in the crawl space. However, I grossly underestimated the amount of damage and the time and resources it would take to remediate them. In the future, we will be sure to better perform our due diligence and prepare our crew to deal with these types of challenges.

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

Spoat Jackson Browne Real Estate, Single Source Real Estate Services (closing).