All Forum Posts by: Levi Klein

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $454,639
Cash invested: $146,722
Sale price: $808,000

$200K profit net $180k but still! HOME RUN. This house sat for 6 years. it was the worst house in a very nice neighborhood. Fixed everything and blew our budget carry/rehab costs were $146K and the project took 10 months. High end finishes and every penny spend was recouped. 3600sqft 5 bed 3 ba project to self perform. This Flip put us debt free 100%. Well worth the pain but I'm not willing to take on a flip of this magnitude again unless every aspect is subcontracted.

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

dilapidated lake house surrounded by beautiful homes. Comps showed an ARV of $675-725 Rehab estimate was $80-120k

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

This was on the NWMLS and a HUD home. we jsut offered the lowest acceptable price HUD would take

How did you finance this deal?

HARD MONEY and some personal

How did you add value to the deal?

We replaced the deck, floors, popcorn, doors, kitchen and baths, added curb appeal natural light and a waterfall.

What was the outcome?

We CRUSHED it! after blowing the high end of our budget($80-120k) by $28,000

Lessons learned? Challenges?

High end custom homes you can add add add and still see a return if done tastefully.

BEWARE of architectural committees. we were forced to put the most expensive roof on this house in order to not violate the CC&R's which were amended in 2010.

My Model is not scalable until I stop self performing and start using subs

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

Sound Equity Lending

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $454,639
Cash invested: $146,722
Sale price: $808,000

$200K profit!!! we paid RE and closing fees out of this so true net $180k but still! HOME RUN. This house sat for 6 years. it was the worst house in a very nice neighborhood. We had to fix everything which is why our carry/rehab costs were $146K and the project took 10 months. We added High end finishes and every penny spend was recouped. This is a huge(3600sqft 5 bed 3 ba) project to self perform. This Flip put us debt free 100%. Wello worth the pain but I'm not willing to take on a flip of this size again unless every aspect is subbed out.

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

dilapidated lake house surrounded by beautiful homes. Comps showed an ARV of $675-725 Rehab estimate was $80-120k

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

This was on the NWMLS and a HUD home. we jsut offered the lowest acceptable price HUD would take

How did you finance this deal?

HARD MONEY and some personal

How did you add value to the deal?

We replaced the deck, floors, popcorn, doors, kitchen and baths, added curb appeal natural light and a waterfall.

What was the outcome?

We CRUSHED it! after blowing the high end of our budget($80-120k) by $28,000

Lessons learned? Challenges?

High end custom homes you can add add add and still see a return if done tastefully.

BEWARE of architectural committees. we were forced to put the most expensive roof on this house in order to not violate the CC&R's which were amended in 2010.

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

Sound Equity Lending

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $217,000
Cash invested: $38,193
Sale price: $339,000

This place was nasty. We went through top to bottom added a bath and finished off the unfinished basement.When we went through the house before purchase we noticed a duct taped toilet flange in the concrete slab that was still set up from the original pressure test. also a stub out for the lavatory sink. THis was all hidden under the makeshift bed (Closet door frame with mattress on top) in the picture. It was a super simple add a half bath. Hauled 45yds of trash out of this house

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

Saw an opportunity for an easy value add

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

MLS offered low on day 1 and they countered. $18k under list in a hot market on day one.

How did you finance this deal?

We paid cash from our saving and HELOC on our primary

How did you add value to the deal?

Added a half bath and finished the basement

What was the outcome?

We made $80k and some lucky buyer got a great house.

Lessons learned? Challenges?

Talking to the neighbors can help you to find the sellers motivation.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $212,508
Cash invested: $20,984
Sale price: $310,000

Great little investment! ended up going from a 2/1 to a 3/1 and adding a studio in the back yard. We didn't make a killing but this was a super simple return to original floor plan home. We nearly done when the neighbor put their house up for sale. We threw a FSBO sign in the front window and sold before completion saving us the cost of landscaping. Cash on Cash return was solid on this deal.

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

Walls were taken out of the original 3 bed home to make it a 2 bed. We basically put the bedroom back in the house put in new trim pack and doors, painted it up and sold it before we completed our whole list by cherry picking the neighbors buyer with a FSBO sign.

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

This was an REO that sat for a very long time. We offered low and did not expect to get the return we saw. This was supposed to be a quick and easy $20k profit but it turned into much more.

How did you finance this deal?

We took a HELOC on our primary and borrowed private money to make a cash purchase then immediated pulled a HELOC on tis place to return the borrowed private money and saved a gob in interest.

How did you add value to the deal?

2/1 to a 3/1 we added the original bedroom back into the house.

What was the outcome?

Better than anticipated without a doubt.

Lessons learned? Challenges?

Any time you can go from a 2/1 to a 3/1 it is easy money

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $152,000
Cash invested: $54,392
Sale price: $309,950

The more we do the luckier we get! This was a longer flip because we lived in it for a short while. We purchased this from HUD and spent more than we should have on the rehab because it was our primary residence after the work was completed. Our plan was to stay in this house a while but an opportunity came up to purchase a nice property we had wanted for years so we sold and moved. If we went in strictly as a fix and flip we could have saved $15,000 on the rehab costs. Still a $102k Profit

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

We needed a home to move out of my parents with our 5yr old daughter and son on the way. We wanted to create equity so a fixer upper was the way to go.

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

I found this through HUD homestore and offered a low amount which they countered immediately with their lowest acceptable price.

How did you finance this deal?

We took out a private loan with a 2 year repayment plan.

How did you add value to the deal?

We completely renovated, removed walls, added kitchen, new roof, trim and mill work, flooring, baths with granite slab and tile

What was the outcome?

We lived in this beautiful home for nearly long enough to avoid capital gains but an opportunity came along that made sense to sell and move.

Lessons learned? Challenges?

This home was in a less than desirable neighborhood. Before you buy a flip make sure the neighbors houses wont scare off a buyer. You can't fix the neighbors house only yours.

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

I am an agent and negotiated my commission away to the seller to get a better deal.

Thanks Pam. Glad to hear it helps. Getting in the real game is one of the smartest financial decisions we can make. Ive been in the business for quite some time. But this is the house that changed my mindset, and what I thought was possible.  We knew it was a deal, we wrote an offer gave 5k nonrefundable earnest money and frantically looked for the rest of the money after Mutual Acceptance because We didnt have it. The deal sold itself the money came in and now we are trying to repeat that a couple times a year. 

Thanks we've got a few more under our belt since this one. All have had similar profits

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $96,000
Cash invested: $54,000
Sale price: $249,400

First intentional fix&flip and it was a home run making all things possible in my mindset

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

Necessity to leave the rat race

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

FSBO sign

How did you finance this deal?

OPM private investor that bank rolled the rehab and 100% of purchase

How did you add value to the deal?

went from 2/1 to a 3/2 with additional 300sqft

What was the outcome?

Made over 100k and earned a solid private lenderr willing to invest in the future based on me performing as promised.

Lessons learned? Challenges?

you only know 60% of the problems until you open the walls.

this strategy would eliminate $128,000 in interest payments for me on my primary residence which should more than offset the 5%interest on my HELOC. i would only use the HELOC for fix&flip 6mo in and outs avoiding origination fees on my purchases and paying a few hundred a month in carrying costs(HELOC interest only payments) Im trying to find a better strategy and appreciate all the feedback but this truly seems like a great thing i dreamed up for my situation

@Ray G. I can use the money twice if I pay down the mortgage and then reborrow this would knock 18 years off my amortization schedule and still allow me to use the money a second time. Is that not wise in your opinion? When my primary is paid off my cashflow jumps $2400/mo