All Forum Posts by: Andrew Farrar

Thanks MarQuese, appreciate that! 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $82,900
Cash invested: $63,000
Sale price: $235,000

This was technically my first ever experience with a a fix and flip. I worked with an agent to find a deal, presented it to a hard money lender, found the contractor and subs, and oversaw the work. I didn't put any of my own money into this project and was able to walk away with cash to get started on my investing journey. You don't always have to have "enough money" to get started.

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

I always wanted to work for myself. So when I learned about the potential that real estate investing presents, I went all-in on reading books and acquiring as much knowledge as I could. I devoted all my time to finding a private lender and presenting a great deal.

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

I worked with a good local agent. We took about 7 months to find this deal.

How did you finance this deal?

Private lender- all-in was about $146k. Our deal was 50/50 profit split.

How did you add value to the deal?

Removed a wall in kitchen to increase size and add the open feel. All new flooring and carpet throughout. Took a room upstairs that was considered a "bedroom" because it had egress and a closet and converted to a nice master bathroom. Also grabbed part of one of the bedrooms and added it to the master bedroom by shifting a non load bearing wall. These improved the flow of the house and created an impressive master bedroom and bathroom.

What was the outcome?

After commission and paying the private lender, my profit was $31,000.

Lessons learned? Challenges?

This was the first project where I learned about what really sells a home: nice updated kitchen and an impressive master bedroom and bathroom.

Thanks Matt! I'll be posting a lot more in the coming weeks about projects that I've done. Hopefully it can help some people here. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $52,500
Cash invested: $70,000
Sale price: $214,000

This was a Fannie Mae property, so I had to live there for 2 years as part of the project. I used all the savings I had at the time, fixed it up while living there, and got a private loan for the renovation cost of $70,000. There was extensive work, but the home was in a good area surrounded by multi-million dollar horse farms. The profit from the sale started me on my investing journey!

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

Real estate investing always interested me. This property was the most affordable one I could find for what I had at the time.

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

Worked with an agent to find it. I bid $2,500 over asking and ended up being the highest bidder by $500.

How did you finance this deal?

My savings for purchase and private loan (12%) for renovation

How did you add value to the deal?

Property had tons of trash and a few minor structural issues. Shored up the roof, cleaned all trash and debris, and renovated the inside. Full stucco reno on outside, painted exterior. Brought addition back to life by installing new roof and installing several new windows for natural light. New cabinets, appliances, etc.

What was the outcome?

About $75,000 profit after paying back lender, realtor fees, etc.

Lessons learned? Challenges?

Learned so much! You always do in the first project. Learned some basic electrical knowledge for wiring outlets and switches, learned how to apply stucco, paint metal roof, install U/V light for clean water, etc.