9611 Hidden Oaks Cir Tampa FL 33612

[Alfredo Rodriguez]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $150,000
Cash invested: $90,000
Sale price: $300,000

Fix and flip. Finish previous owner open permit and completely renovate home.

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

We always looking and analyzing deals using the 65 percent, 70 percent and (or) 75 percent rule minus repairs. This property was on the market and need it repairs. So if the price makes sense we always invest.

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

We found this deal on MLS. It was a property that the previous owner had started with an addition and was not able to complete. So buy negotiating it at $150,000 sales prices make sense for us to invest for the repairs need it in this listing. We basically negotiate it with transparency explaining to the other realtor involve our intentions were to repair this home. Of course this implies a cost for repairs and all investors need return on their investment so the max we could pay was 150k.

How did you finance this deal?

We finance it with a hard money lender who gave us 75 percent of sales price. We had save up for the down payment(D.P $37,500 dollars). By creating partnerships we brought in a contractor who is now a friend and offer him half of our profits if he were to help us finish the rehab and also invest in any money we did not have for the repairs.

How did you add value to the deal?

We add value by finishing up an already started master bedroom addition and master bathroom previous owner initiate. It turn out beautiful. We also fix existing electricity problem property had. Finish framing work, texture, paint. New laminate floors thought the home. Remodel two existing bathroom and adding a new bathroom. New toilets, plumbing fixtures, electrical fixture and so much more. New Kitchen cabinets and granite. Clean out the yard, cut a huge tree in front and so much more...

What was the outcome?

It turn out great. All parties involve made a profit and also we learn a lot about different ways of raising money. It took us around 8-9 month to complete. We learn a lot and continue to learn. We sold the property immediately to a conventional buyer after been only 3 days on market.

Lessons learned? Challenges?

We learn a lesson that times can kill profit. Also the cost of money can also hurt your deals as well. Specially when using a hard money lender that charges you 12 percent interest only on loan.

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

Yes I was the real estate investor on this deal (Alfredo Rodriguez realtor). Lender used name : Leonard Mark.