First Fix & Flip through Seller Financing

[Pablo Hernandez]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $200,000
Cash invested: $60,000
Sale price: $280,000

Fix and flip purchased through seller financing

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

Listening to the BP podcast I found out about Seller Financing and figured I could make this work by negotiating the down payment and getting financed without a bank

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

Saw a "For Rent" sign go up in front of the property next door to my primary residence and I asked the person putting it up what it was renting for. Got to talking and found out he was the owner, asked him if he had thought about selling it and he said no because rents were doing well. I noticed a couple weeks later the rent sign was still up so I asked him what price he'd be open to selling the house, we went back and forth and finally agreed to seller financing at a reasonable price.

How did you finance this deal?

Seller financing

How did you add value to the deal?

Added central HVAC, remodeled entire kitchen, knocked down a wall, installed new siding, new plumbing, new appliances, basement waterproofed, refinished wood floors, removed popcorn ceilings

Lessons learned? Challenges?

This deal really taught me how to factor in all expenses before purchasing a property - as my first fix and flip I was lucky to make some money but not as much as I would have had I factored in all expenses and known the major issues the house had