Flip for First Time Buyers

[Stephanie Gothart]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $76,500
Cash invested: $47,500
Sale price: $185,000

This one was in my self directed IRA. It was a complete gut job, pretty much everything was new. We were able to repurpose some solid oak cabinets from a remodel job from our other company and reuse a bathroom vanity from that job as well.

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

I had a first time home buyer looking for a property and we just couldn't land a deal for anything on the market.

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

The listing agent called me because we had lost out on a deal on another listing he had and knew we did rehab and that I had a buyer looking in that size house. The lady was about to lose it in foreclosure and he knew we would be buying with cash and quick close.

How did you finance this deal?

It was a cash deal in my self directed IRA

How did you add value to the deal?

New roof, water heater, all new flooring, paint, granite, the works!

What was the outcome?

The first time home buyers are ecstatic! We made money and because the market is so great here they had gained about $10,000 in equity by the time we closed.