Maryland Family Flip

[Jonathan Tavarez]

Investment Info:

Single-family residence fix & flip investment in Colesville.

Cash invested: $65,000
Sale price: $650,000

This was a cool deal, I basically negotiated with a family member that wanted to sell his house but didn't wanted to put any money for repairs. We agree on a number based on my ARV numbers, we signed a few papers and I put the money for all the repairs. I realized that this type of deal carry an extra layer of stress since I was working with family and I want to make sure they got good value but at the end we had a great product, sold for more than originally expected and everyone was happy.

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

I wanted to help a family member that wanted to sell his house but didn't wanted to put any money in to it. The house needed a good amount of repairs and he was originally considering wholesaling the property, but I saw an opportunity for both of us to make some money and because of my experience he decided to trust me with the house.

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

By talking to family members about the current real estate market and looking for a way to help and make some money at the same time.

How did you finance this deal?

Repairs performed with credit cards and cash.

How did you add value to the deal?

Fixed all mechanical issues, new floor, paint, finishing part of the basement and a few other things. I managed the project personally as well.

What was the outcome?

We sold the house for more than original/expected ARV, had it under contract in 5 days. Me and the family member made a good amount of cash and he was very impressed with the results to the point that he added some extra dollars to my commission.

Lessons learned? Challenges?

I learned that big houses carry a good amount of risk because of the size typically issues will be more expensive that my typical property under 1500 sqft. I like to work properties that are 3/2 and under 1500 sqft, so there was a lot of learning with this property that was close to 4000 sqft.

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

I worked this deal with the best realtor in the DMV, Sarah Tavarez :)