Investment Info:
Single-family residence fix & flip investment.
Purchase price: $140,000
Cash invested: $17,000
Sale price: $245,000
I bought the home as a foreclosure. Needed some minor cleaning, paint, got the yard growing better to create the curb appeal, build a lower deck, and finish the basement that I did all myself. Basically all my costs were material and I lived in the home for 2 years while I did all the work. I listed the home with a realtor and it sold in less than one day. Should have listed it myself on social media to save on fees. Which is what I did with the next house I sold.
What made you interested in investing in this type of deal?
After selling my first home in a day, I saw the potential of the profits I can make by flipping the homes myself while living in them for 2 years. So being in a climbing market in 2011 I saw that more profits are to be made and purchased this home to do the same thing.
How did you find this deal and how did you negotiate it?
I honestly did the work myself. I have found that I am more aggressive than most realtors so if I don't do it myself, it wont get done the way I want it or as fast as I want it. I do my research well before I go looking so when I get to the point of looking at something, I'm not just tire kicking, I am ready to go and I know what I can afford as well as what will become an investment, not just a property. Homes are investments, not a place to stay for 30 years.
How did you finance this deal?
I did a 30 year bank loan that was $0 down. And I bought the materials to finish the home out of my own pocket with my full time job.
How did you add value to the deal?
new paint, carpet, deck, new grass seed and landscaping to get the curb appeal, finish the basement with new framing, electrical, drywall, paint, trim, everything. Did it all myself. A finished heated garage and bar in the basement attracted the buyers husband and the kitchen, paint and cleanliness attracted the buyers wife.
What was the outcome?
I sold the house in two years and it sold in one day. I have close realtor friends and got a good rate to sell and profited $80,650.
Lessons learned? Challenges?
This was the home that I really saw the profits. It was the home that made my real estate mind completely turn and it was all sort of on accident. So I learned that if you can be patient, you can find the right home and can make really great money with them. The challenge is you're always moving at first. But the more you do, the more people you meet and learn more ways of saving/making money.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
During this flip yeah I worked with some amazing people. But my advice is, don't waste the money cause all they do is use social media to sell your home for you. Do the dirty work yourself and save the fees for yourself. But I didn't learn that till the next home, which I built instead of bought.
