Investment Info:
Single-family residence fix & flip investment.
Purchase price: $60,000
Cash invested: $92,000
Sale price: $230,000
Found this deal through a wholesaler. Ended up purchasing for 60k with cash and using a hard money lender for the construction costs to save money in interest on the loan. The project took longer than I wanted (8 months) but it was under contract in 2 days for 5k over asking price.
What made you interested in investing in this type of deal?
The neighborhood was perfect for what I was trying to do (affordable for me and up + coming) and this house had a lot of great original character with sturdy bones. I love preserving the 100 yr old charm of a house while also modernizing it.
How did you find this deal and how did you negotiate it?
I worked with a local wholesaler and let them know exactly size, price range, and neighborhood of the property I was looking for. They were fantastic to work with, truly a gem in the wholesaling community.
How did you finance this deal?
I paid most of the purchase price in cash and 20k of the initial construction costs in cash, the remainder I worked with a hard money lender.
How did you add value to the deal?
Completely renovated all of the mechanical systems including replacing radiator head with central air, all new electric, completely new kitchen and renovated main bathroom.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Direct Mortgage Loan Company for the hard money loan, Covenant Real Estate Investment Group wholesaling team for sourcing the deal, George Maynes at G2Philly for selling the property quickly
