All Forum Posts by: Joe Worth

Investment Info:

Single-family residence fix & flip investment in Louisville.

Purchase price: $22,500
Rehab: $85,000
Sale price: $182,000

This property was severely damaged from years of termite damage and vacancy. This was almost a new build as we installed new everything including plumbing lines in the slab. We converted to a 4 bed, 2 bath with a master suite. Being in a flood zone and the extensive amount of rehab needed, the city shut the project down multiple times and we had to go through local and state water companies and agencies to get approvals to do the work. Glad to get rid of this stunner (flippers know the feeling)!

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

We saw a huge spread could be made. Little did we know all the work we had ahead for us as we ran into all the termite damage after tearing off the drywall.

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

Listed on MLS for $32,000 and low ball offered at $15,000. Agreed on $22,500.

How did you finance this deal?

Hard Money.

How did you add value to the deal?

We completely rebuilt the entire property and added a master bath and a bedroom.

What was the outcome?

Under contract for $182,000! We are setting a new high end comp in the neighborhood as the previous highest sale is $159,000.

Lessons learned? Challenges?

Flood zones are very risky to flip in. We ran into many challenges with the city and local/state water departments. This property also took a little bit longer to sell as most buyers are scared of buying their forever homes in a flood zone.

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

When all other hard money lenders said no to financing this deal, SurePoint Equity gave us the green light to do this project. We purchased this property with a young and hungry realtor named Alexis Fentress who is also an investor.

Investment Info:

Single-family residence fix & flip investment in Louisville.

Purchase price: $22,500
Cash invested: $85,000
Sale price: $182,000

This property was severely damaged from years of termite damage and vacancy. This was very close to being a new build as we installed new everything including plumbing lines in the slab. We converted to a 4 bedroom, 2 bath with a master suite. Being in a flood zone with the extensive amount of rehab, the city shut the project down multiple times and we had to go through local and state water companies and agencies to get approvals to do the work. Although construction was stalled for 3 months, we still finished it in a timely manner considering all the work we had to complete to bring it to market. Glad to get rid of this stunner (flippers know the feeling)!

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

We saw a huge spread could be made. Little did we know all the work we had ahead for us as we ran into all the termite damage after tearing off the drywall.

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

Listed on MLS for $32,000 and low ball offered at $15,000. Agreed on $22,500.

How did you finance this deal?

Hard Money.

How did you add value to the deal?

We completely rebuilt the entire property and added a master bath and a bedroom.

What was the outcome?

Under contract for $182,000! We are setting a new high end comp in the neighborhood as the previous highest sale is $159,000.

Lessons learned? Challenges?

Flood zones are very risky to flip in. We ran into many challenges with the city and local/state water departments. This property also took a little bit longer to sell as most buyers are scared of buying their forever homes in a flood zone.

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

When all other hard money lenders said no to financing this deal, SurePoint Equity gave us the green light to do this project. We purchased this property with a young and hungry realtor named Alexis Fentress who is also an investor.

 HI Kelly, thank you. This project was in 40229 (Hillview). 

Thanks Kevin! I think everybody has fond memories of their very first project (good or bad). 

Thanks all! This was my first flip two years ago. Since then I have done many wholesales, flips and BRRRRs. After completing this flip I left my corporate job and have been investing in real estate full time. If anybody is ever interested in doing deals in Louisville or has questions about anything, please message me and let's help each other get better.

Investment Info:

Single-family residence fix & flip investment in Louisville.

Purchase price: $77,500
Sale price: $154,900

This was our first flip that we purchased from a local wholesaler. We bit off a lot more on our first flip than most people should but we learned A LOT more than most on their first project. Updates include new roof, siding, HVAC, plumbing, flooring, cabinets, countertops, fixtures, paint, trim and major bathroom upgrades. We opened up the wall from the living room to the kitchen for an open concept finish. We also finished the basement and added a bedroom to make this a 5/2 with 1,825 sq ft.

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

The area is perfect for first time home buyers and I knew it would sell fast once completed. Also, it is a mile down the road from Lowe's which made those last minute runs for supplies very convenient.

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

My real estate agent brought this off market deal to me from a local wholesaler.

How did you finance this deal?

We partnered with another local fix and flipper who secured hard money to fund the purchase and rehab. Since I had no fix and flip experience, the hard money lenders didn't want lend unless we partnered.

How did you add value to the deal?

We added a bedroom to the property and tricked out the kitchen and bathrooms.

What was the outcome?

We received a full price offer first day on market.

Lessons learned? Challenges?

I did this flip while working a full time job which gave me the confidence that I could be a full time real estate investor and be much more effective. I also learned that FHA buyers get more leverage on the appraisal side because we had to drop our price we agreed to by $4,000 because our buyers were using an FHA loan. The appraisal came in short so we had to accommodate or put it back on the market and do that entire process all over again.

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

The agent that helped us find this deal through a wholesaler was Rob Bergeron. Our partner on this project who secured the financing was another local flipper/agent named Frank Miller. Both individuals are based in Louisville and do many transactions as a realtor or investor.

@Shelleman Paulin I've been using DealMachine for about 10 months now. It's a monthly subscription based service that allows you to send postcards and skip trace as well. Highly recommend. It's a great way to start out, cost effective and not many wholesalers are taking the time to drive through neighborhoods to find deals. 

@Michael M. Much appreciated. We sold our flip for asking price and set a great comp for others. I ended up wholesaling another house in that neighborhood to a friend to flip so our sale came at a great time for all parties.

Thank you! @Ehsan Rishat @Tony Robinson

@John Sherwood Depending on the demographic of tenants you're okay with renting to it's a decent area for rentals. Students won't rent in the Algonquin area. And I personally wouldn't flip a house over there unless I got it dirt cheap. But everybody has a different risk tolerance level.