First House Flip After a Break From Investing...

[Paul L.]

Investment Info:

Single-family residence fix & flip investment in Alpha.

Purchase price: $80,000
Cash invested: $8,000
Sale price: $199,000

Cosmetic Repair

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

Wanted to fix & flip

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

Bought this house from a wholesaler. Their one and only that I'm aware of.

How did you finance this deal?

Hardmoney

How did you add value to the deal?

Bought low, sold high by renovating.

What was the outcome?

Took on a contractor to do the work and made them a 50% partner.

Lessons learned? Challenges?

Don't take on a contractor partner. I found that I was better at finding subs to renovate the house rather than the contractor. The big reason why is they call subs to do the work and really don't shop prices. My contractor partner also did the work himself with his very old father after hours. Long story short, I don't use partners and I manage the work without doing the work and I'm much better off.

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

I used a company called Lima One Capital on that first deal which worked out well. I purchased the house from someone that got lucky finding this wholesale deal and who sold it to me. I find it very rare to find a good deal from a wholesaler in my area. My best deals were found by me.