Investment Info:
Single-family residence fix & flip investment.
Purchase price: $160,000
Cash invested: $76,500
Sale price: $260,000
After months of searching and being outbid by lots of other investors in our area, we were lucky on this property. The other party's financing fell through and the seller came back to us as we had previously already submitted 2 offers. The property was a complete gut, all the way down to the studs and all new electrical. We have our own crews and wholesale pricing on most materials we've invested through my contracting firm which helped keep the rehab cost down somewhat. The house went under contract and was sold right before the Covid19 shutdown went into affect in WA state. I heard the new owner had bought the property to hold and rent out.
What made you interested in investing in this type of deal?
I really wanted to get started with investing and my area is very competitive. I am not moving on and more interested in the long distance BRRRR strategy.
How did you find this deal and how did you negotiate it?
I've offered 2 separate offers to the owner. They had 2 other deals fall through due to financing and then finally came back to us to ask for our offer again.
How did you finance this deal?
Hard Money Lender
How did you add value to the deal?
The rehab was a full gut so just that and the fact that we can keep our labor cost and materials low as possible (running though out design and construction company) helped us create value in this property.
What was the outcome?
We sold it and made a little money. I really value the experience. It's tough to find good deals in my market.
Lessons learned? Challenges?
Looking for another market and I want to focus on the BRRRR strategy.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, in my current area I have several connections.
