My first fix and flip in Alabama

[James B.]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $4,065
Cash invested: $54,000
Sale price: $3,500

So, learning a lesson here. Got a great deal on a Tax Deed. Got my business up and running. Got title to the house from previous owner! Got a contractor and started the work. Contractor ripped me off. Way over charged me for services and priced the house out of resale. Second contractor ended up being a known felon (according to my lawyer) Long story, I ended up falling into every trap in Real Estate Investing from bad contractors, getting robbed, getting sued and failing hard core and landing in a Chapter 7.

I walked away. I saved my money and are getting ready to move forward.

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

It was cheap!

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

CI- wound up on a list of people who buy cash Tax Deals

How did you finance this deal?

Cash

How did you add value to the deal?

I resourced the entire project from Vermont.

What was the outcome?

Got ripped off. Got sued, Lost the house. Filed Chapter 7.

Lessons learned? Challenges?

Some lawyers will help you, some will take you down; (specifically a particular Lawyer who lost this house to me because it was in a Tax Deed). And even if you hold the title to a house, a lawyer can just come along and sue you for it even though they admitted they never had possession of the home to begin with.

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

No.