All Forum Posts by: Debashish Majumder

@David A Spagna - thank you! :-) Yeah - these don't come around very often!

@Andrew Syrios - thank you! :-)

@JD Martin -  Bridgeville, PA and oh yes - go ahead check it out on zillow here: https://www.zillow.com/homes/6...

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $8,000
Cash invested: $45,000

Converted a condemned property into a beautiful SFR in a 60-day flip. I bought this property as part of a twin wholesale deal and off-loaded one of them to a fellow flipper while hanging on to this one. Sat on it for almost a year trying to work up the courage to tackle this massive piece of rework. Finally started in May 2020 (lockdown freed up almost all labor personnel to work on a tight schedule). It was rented before we were finished - tenant moved in middle of July and I just closed refinancing on the property (with zero mortgage mind, you) and took $70K out with a nice cashflow to boot.

This one, I'm really proud of! :-)

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

Taking a chance on a twin investment deal - this is the one I wanted but had to get the other one as a package deal.

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

Wholesaler advertised it - negotiated it down from $25000 to $17500 for both properties.

How did you finance this deal?

Cash bought - zero debt.
Post-flip refinance ARV was pegged at $130,000 - took cashout of $70K

How did you add value to the deal?

Gave it a brand new bathroom, full cosmetic refinance, full walls, floors, appliances, the works

What was the outcome?

I didn't want to sell it because of the location of the property - it was rented within 30 minutes of posting the property - I got a little bidding war going and made out like a bandit with the rent!
Just closed on my cash-out refi on very favorable terms with Mutual of Omaha mortgage with the property being valued at $130K

Lessons learned? Challenges?

Don't sit on a gold mine - MINE IT! I feel like I lost a whole year's worth of rent because I was too afraid to work on a proverbial "dump"!

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

Carrie Majumder (my wife, Real Estate Agent with Keller Williams)
Mutual of Omaha Mortgage (extremely easy process!!)

Thanks @Kirk R. and @Sophie Ben!! Good luck on your projects!

@Nicholas L. Thank you! :-) Yeah - the cosmetic work was in the interior but the initial target value was not going to come without the new roof, new concrete walkways/stairs and landscaping. That's where almost 40% of the investment went. The rest of it (40%) went to my initially unplanned upgrades of finishing the basement and putting a full bath in it. Yeah, I could have sold the house for $115K but I wanted to up the profit margin and pull off something different in the neighborhood to raise values.

Also, I typically use my own team of service providers but the one large contractor I used (who I now partner with regularly on roofing, paving, masonry work etc.) was McNeily Construction. They were awesome and really came thru in a timely, cost-effective manner when I needed to lay cement without breaking the budget.

@Brett Kamin - wrote to you but didn't tag you earlier. :-)

@Joe Aiola - thank you so much! Absolutely - I'm on my 5th flip right now - should be complete by end of the month! I Will post pics! :-D

Hi @Andre Taylor!! Nope - my 5th...just wanted to journal my previous flips from the last 18 months. :-D

Thank you for the good wishes - my best to you too!!

Hey Brett, I did some of the work myself - basic stuff like drywalling, painting, landscaping etc. but I did have my assembled crew working with me as well. It helps to assimilate a group of professionals who are steady, long-term professionals and who have personalities you like. So I have 2 groups of general contractors (each has around 3-4 daily workers), 2 roofing companies (both very reasonably priced and will ALWAYS return my call), an electrician, an HVAC tech, a painter, and a landscaper/masonry guy who I consistently work with. The only real variable is the plumber (mostly because I only want to use the best companies and they're very much in demand so they're almost never available consistently) but now I think I've finally picked one I'd consistently like to work with - my wife became friends with the owner's wife. :-)

So long answer but yeah, it always takes an army and I've taken the advice of those who came before me and have assembled (finally!) a good team and we now specialize in the 60-day flip. Yes, auction.com places a $2500 hold on your card just to let you bid on properties. (you get it back if you don't win any auctions). Hope that answers your questions!