Investment Info:
Single-family residence fix & flip investment in Richlands.
Purchase price: $100,000
Cash invested: $30,000
Sale price: $167,000
Projected timeline: 5 weeks reno + 45 days to sell
Actual timeline: 5 weeks reno + 4.5 months to sell
Buyer #1 couldn’t get his soon-to-be ex-wife to sign a document that allowed him to purchase the property without giving her any ownership interest in the property. We terminated the contract after 40 days.
Buyer #2 used a USDA loan. Thanks to COVID, USDA loans are extremely backed up... we were under contract for 90 + days before finally closing in January 2021.
What made you interested in investing in this type of deal?
It was supposed to be a fast easy flip
How did you find this deal and how did you negotiate it?
My partner's friend brought it to him
How did you finance this deal?
Private money
How did you add value to the deal?
Fixed the flooring. Painted the cabinets. Installed a new vanity.
What was the outcome?
$29k profit
Lessons learned? Challenges?
I found the money and managed the contractor. There is no reason to partner if you can just pay an assignment fee.
The night of an investor meetup, while we had the property was UC, water was running down the inside of the house. We thought it was the flashing around the chimney and wasted $800 replacing some shingles and flashing. In reality, it was just a sagging piece of J-channel below the top piece of trim. When it comes to finding leaks, start at the highest possible penetration point.
