All Forum Posts by: Neil Rose

Investment Info:

Single-family residence fix & flip investment in Sacramento .

Purchase price: $275,000
Cash invested: $100,000
Sale price: $525,000

We did a flip in Sacramento CA. House was bought wholesale. We replaced the roof, ac and painted the house. We also remodeled the kitchen, bathrooms and flooring.

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

We found the deal through marketing and it didn’t have any major problems besides normal rehab needed.

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

Marketing and negotiated with the seller. We actually made the seller a deal that we would give him 10% of the profit on the back end.

How did you finance this deal?

Private lender who did a JV with us

How did you add value to the deal?

Remodeling

What was the outcome?

We ended up making a nice profit on this one and the seller was happy with his cut at the end

Lessons learned? Challenges?

Negotiating with a seller and thinking outside the box can help place an offer at the top of the list.

It would be hard to do something local with 100k. I would suggest finding a team to work with. Someone who also puts on a chunk of money - you be the 1st lender and you do a JV.

The person you partner with should have experience they can show, referrals you can contact and must be willing to put their own money into the project. Would be best to work with a local broker who has experience flipping, a contractor who has experience flipping etc.

Doing it all on your own and risking all of your money thousands of miles away with someone who isn’t experienced, isn’t putting cash into the the deal and has no personal vested interest in the property is a disaster waiting to happen.

@Manav Mandhani

There’s so Many strong markets around the country right now. Florida, Arizona and California are always three of the strongest for appreciation. Areas surrounding those states can also see spikes. Northern Florida is one of the spots I’ve seen that has incredible cash flow along with big appreciation potential.

Fix and flip in New Port Richey FL near Tampa. 85k profit potential. Looking for JV partner. I've got 30k to put in and can manage the rehab.

Purchase /$425,000

Repairs /$60,000

Holding costs/$5,000

Closing costs/ $25,000

Sales Price/$600,000

Looking for a JV Partner on a flip in Edgewater FL. 

Purchase price / $195,000

Repairs / $35,000

Sales Price / $280,000

Holding Costs / $2,000

Closing costs / $13,000

Projected Profit / $35,000

Property Details

Located in the heart of Edgewater in the Florida Shores subdivision. 1991-built block home - three bedrooms, two bathrooms, a two-car garage, and 1,218 square feet.

Need to replace the roof and give the interior a cosmetic overhaul, updating the kitchen, bathrooms, flooring, and a new paint job.

The most recent rehabbed home in this subdivision sold after five days on the market at $230 per square foot. This home is 1,218 square feet.

So I had bought a property a few weeks ago for 65k. My plan was to put in 35k and sell for 140k. In looking into the project further I took a different route and spent about 10k and just got a tenant for $995. 

 Very good answers by everyone.  Do you have the ability to bring a deal to the table? If so that’s be worth a parent cutting you in on the deal? Can you rehab the property and save money on rehab costs? Of the answer is you don’t being value as of now then flipping isn’t going to work or make you money.

I would focus on finding a buyer first and then finding them a deal. Your license can be a huge benefit if you throw your commission in to the deal or list for 1%

Wholesaling can be very tough. It really comes down to connections and the right system. That usually includes a huge budget as well.

I would suggest being a private lender for real estate investors.1st deed only with no seconds allowed. 60% mad LTV. Borrower must have cash for final 40%.