All Forum Posts by: Deborah Fischer

I sold real estate more than a decade ago and only did 20 transactions in 10 years: straight residential resale no short sales, foreclosures etc.  I literally started watching Flipping 101 on HGTV and other shows from which I learned a little about older homes and some of the challenges flippers face. No real retirement, watched neighbors move "up" and decided I want my equity to work for me.

I entered all state abbreviations into Zillow search and my current city of residence derived more results than any other US city for properties under 50k, 3 beds, any bath. I flew there, made an offer, and moved weeks later to embark on my flipping career, using credit cards mostly for repairs and even contractors where I could. My SO is a former general contractor so most things we do ourselves and leave the specialty tasks to the experts but drywall etc I found by asking any realtor I came across, really everybody I have conversation with telling them I flip property and ask contractors for other professional referrals!

My home town is an anomaly as the homes are in abundance over 100 years old and on the market due to tax redemption sale. Many tax buyers don't want the properties they get so wholesale them (great for me bad for community home values).  I take the perspective that these homes deserve to be brought back (not restored but renovated, celebrating past and bringing to present).  Intrinsic, financial, and an increase in home values for my community are the rewards.  Doesn't get any better!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $38,000
Cash invested: $43,000
Sale price: $143,000

1900 build; largest expense was drywall retexture. Me and two friends did the majority of work interior and exterior. Market value was 50s prior to my completion of this property. We are the highest for size in this community-raising the neighborhood value here in spite of a predominant, wholesale tax redemption market.

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

No real retirement to speak of and health problems. Needed some $$ in the bank and cannot work traditional employment (can't sit or stand for long periods). I needed a flexible schedule so took out some of my home equity and moved to another state having more homes under $50k derived from internet searches.

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

Every property (4) I purchased in the first 8 months I personally found on Zillow.com or Realtor.com and called an agent to show me the property.

How did you finance this deal?

Cash-out refi.

How did you add value to the deal?

Nearly complete reno interior and exterior: new paint, flooring, appliances, lighting.

What was the outcome?

Almost $50 profit and sold in less than 24 hours as the highest priced home in the community this year under $1600 sq. ft.

Lessons learned? Challenges?

Don't listen to others opinions of others (when making design/reno decisions); instead do the research in terms of market value in and the the factual information provided by industry experts. EVERYBODY has an opinion and has different tastes. Had I listened to others telling me I was over-improving I wouldn't have done as well. I strove to be the highest single-family sale in the community.

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

Learned more about who I WOULDN'T work with again rather than who I WOULD but ultimately found a reputable and knowledgeable RE agent to whom I would refer.

Never done a FSBO deal although I came on today looking for a FSBO contract as the buyer. I'm also not a finance expert but if the house is not used as collateral to obtain the loan it would appear to be a cash deal to me. He is using hard money, not his income nor debt disclosures to qualify, right?