All Forum Posts by: Aaron Provencal

Does anyone have any recommendations for a repair contractor in this area? McLeansboro IL

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $1,100,000
Cash invested: $400,000
Sale price: $2,200,000

High-end property rehab with 4 individual units. This property had a main house, a pool house, an apartment over the 3-car garage, plus a 1,200 SF guest home.

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

This was a high-end property that needed a lot of structural work

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

I had a partner who found this deal

How did you finance this deal?

Hard money

How did you add value to the deal?

I had the right contractors to handle this type of work

What was the outcome?

The home turned out beautiful

Lessons learned? Challenges?

This project took us WAY too long to complete. We had challenges getting the tenants to vacate, we had material supply delays during the pandemic, and I was juggling several other projects at the same time. The lender made the most money on this deal as they had a $30,000 fee clause in the agreement for going over our timeframe on the rehab.

Running my numbers, I would be at $255k for an offer. The market is still not moving very fast in this area. 

Investment Info:

Mobile home note investment investment.

Purchase price: $64,250
Cash invested: $12,000
Sale price: $175,000

We purchased this mortgage note and ended up foreclosing on the property. When we sent someone out to fix up the home, the neighbor came over and wanted to buy the property as-is. He offered $150,000 then we had another neighbor reach out and offered $175,000. We went back to the first offer and let him know that if he wanted to meet the second offer, then we would sell it to him.

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

I was trying out purchasing mortgage notes

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

We found it on a platform called Pre-REO.

How did you finance this deal?

Pre-REO offered the financing with a 10% downpayment

How did you add value to the deal?

It was just a waiting game going through the foreclosure process

Lessons learned? Challenges?

We could have saved some money starting to clean up the property if we had only checked in with the neighbors first. They had no interest in the mobile home; they just wanted the property so another family member could build a home on it.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $305,000
Cash invested: $75,000
Sale price: $465,000

Horder house made beautiful again.....this was our 7th flip

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

This property needed an extreme amount of clean up and haul away of items left behind. Most people didn't want to touch it.

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

We had a wholesaler bring this one to us. We had to renegotiate the selling price.

How did you finance this deal?

Hard money loan

Lessons learned? Challenges?

The property owner did not leave the property as required at closing. Luckily, due to the number of items this person had at the home, we added charges for each day beyond the set closing date for them to vacate the property.

Quote from @Scott Scoville:

Quote from @Aaron Provencal:

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $175,000
Cash invested: $65,000
Sale price: $315,000

This was our second flip project located in Sacramento

 Congrats Aaron!

 Thank you! 

This was in Del Paso Heights and purchased it off the MLS. We offered $75k under asking and they accepted.

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Investment Info:

Single-family residence fix & flip investment.

Purchase price: $600,000
Cash invested: $30,000
Sale price: $799,000

This was a very light rehab project

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $255,000
Cash invested: $75,000
Sale price: $415,000

Getting a little more comfortable with our processes