Follow up! Follow up! Follow up!

[Emily Fackler]

Investment Info:

Single-family residence fix & flip investment in Eddyville.

Purchase price: $25,000
Cash invested: $65,000
Sale price: $119,000

This house was a 2 bedroom, 2 bath single family home that was previously rented out. It was in very bad shape but the huge porch and underutilized space caught my eye!

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

I needed a deal! I was a W2 employee and I had the real estate itch. I wanted to get started. I kept looking on the MLS for months and months analyzing deals. Finally, when I saw this one hit, I knew it was a great opportunity.

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

I saw this deal on the MLS. However, when I went to contact my agent and the listing agent, they said it was sold. However, I didn't stop there. The listing agent said it was bought in cash with a 7 day closing. I had zero chance!

I followed up with her a week later via text and asked her if the closing went through. She said yes and I congratulated her on the sale. I told her that if the buyer wanted to get rid of it I would buy it. A day later she texted me back and it was mine!

How did you finance this deal?

Local bank financing for the home loan. We put down 20% on the house. For the rehab we used cash (worst idea ever). We learned what not do do moving forward but again, it was a great learning experience for us.

How did you add value to the deal?

We added a master suite and updated the entire house.

What was the outcome?

We learned a lot, found great partners (contractors and our lender), and profited!

Lessons learned? Challenges?

Lessons Learned: 1. You are the only one that cares about your deal as much as you do. You can't sit back and hope for the best. 2. Don't assume people are doing their job. 3. Don't use all of your cash to fund a rehab leaving you strapped for cash. 4. The house isnt sold until the papers are signed and the keys are handed over. 5. Don't try to do the work yourself if you aren't skilled in that trade. Pay someone else to help!
Follow up on something that you want! Never stop follow up!

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

Yes, Alex Sutton at Farmers Bank and Trust in Eddyville Kentucky.