Investment Info:
Single-family residence fix & flip investment.
Purchase price: $380,000
Cash invested: $60,000
Sale price: $525,000
I was asked by the realtor to give the owner recommendations on what would help the sale of their home. The owner did not want to do them, but they were ok selling me the home at a discount so I could do the suggestions. It only took a couple months and was well worth the outcome.
What made you interested in investing in this type of deal?
I bought it at a good enough price I knew I could simply turn around and put it back on the market and make a little profit
How did you find this deal and how did you negotiate it?
The realtor I saw in a local coffee shop new me as we had worked together previoulsy. He knew I had a good eye for things that helps sales, so he asked if I could take a look at it to give them a few tips. After a month went by with the owner not willing to do them and knowing I bought homes as-is, he asked what price I would buy it for a project. After a little back and forth we locked in a no-brainer price for me.
How did you finance this deal?
hard money lender
How did you add value to the deal?
Painting the walls to remove dust, dirt and nicotine marks. Replaced all lighting and painted all of the cabinets. The kitchen cabinets were three different colors, so I knew unifying them would help visually. The biggest changes were simply making the place new buy re-painting in neutral colors, replacing some very bold colors they had before; such as the dark red dining room.
What was the outcome?
I got lucky by stopping by to do some last minute items as a buyer and her friend were walking buy and asked to view it. I represented both sides and sold it for a very solid return for a 3 month rehab.
Lessons learned? Challenges?
Have more open houses to help minimize having to pay a realtor on the selling end
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Just me
