FIX AND FLIP CHORONICLES
FIX AND FLIP
Lately I been working on a Fix and Flip where I had 100 % control over. As some of you know I am new to rehabbing and positioning myself in partnerships with established successful rehabbers. I pretty much made a name for myself as a result oriented Wholesaler in my area. And this particular Person approached me to help him with his leads he could not take on as fix and flips and just wanted me to wholesale them because he did not have the time to do do. We worked together and got a few deals done. Then this lead came through we got the seller to agree to 50k. I told him I will pay 60k for it and he can keep the assignment fee. Then he said “how about we rehab it together”?. I said great that’s even better because I did not know what I was doing. And me being new I have limited Hard money connections. Anyway I worked the lead and my partner lined up the money. We came up with that we needed 50k foe thr purchase and 25k for rehab. It really needed 15k-20k but we asked for 25k for cushion. ARV is about 155k conservatively.
Well like a week before closing my partner went M.I.A fora few days. Then I got a call from his wife saying that he got shot and was in critical condition. WHOA! I later found out someone was breaking into his car and he seen them and tried to stop him. At that point they shot him and took his car. I was devastated and I knew that my partner would need this money more than ever. I had to stand tall like Dikembe Mutumbo and handle business. The Hard Money lender agreed to still fund the deal. He admired my work ethic of wholesaling houses. He also agreed to fund 100% I had to bring closing cost, insurance and 1st payment to closing. I was more than happy with that. I called my partner on my 1st rehab to give me a quote on the work. He has a GC license and I knew he could be trusted with money. He gave me a quote on the work and even gave me his expertise advice. 1 of the things he told me was that this was a 1st time home buyer price point. And 1st time home buyers are not that picky they are very humble people who saved up some money and are thrilled with the fact that can buy a house. He then advised me not to turn this place into the TAJ Mahal .
I use to wholesale houses with another guy all the time who is now a full time realtor. So of course by default I was giving him the listing. He came out and gave me realistic numbers and told me that we need to list at 150k to ensure a quick sale. Thats the number I had in mind so I wholeheartedly agreed. He gave me some recommendations around the house like little detail things to take care of as well as reading bigger pockets blog. The bigger pocket blog just confirmed with my realtor said about painting the mailbox. I took notes we closed and contractors got to work. We did have surprises for example the copper was gone in the attic. But that was only 1,000 not to bad. Anyway it took about 3 weeks to complete. 1 thing I did learn always budget for Landscaping. I never thought I be paying a landscaper 900 bucks. I must admit he earned that money and did a hell of a job in the yard. He even planted Banana Trees, Im serious he planted banana tree’s he did advise me that it will take a year or 2 to grow though.
Once I got the finish product on the market the realtor and I was unsure on how long it would take to sale. Well we were both in for a surprise, we had 4 offers on the table in less than a week. Options are always a Beautiful thing and I was taught with these FIX and Flips its always good to get in and get out. I lost money on a property and know many others who have as well. But when you have the opportunity to price right and make a profit take it. Some people might say you were under priced if you got 4 offers in a less than a week. I personally think I was priced right at 150k. And with hard money Loan I am all in at 80k we were on the market asking 150k. If you want to see the play by play of my rehab project please click here for pre rehab for finish product please click here.
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