Investment Info:
Single-family residence fix & flip investment.
Purchase price: $92,200
Cash invested: $13,500
Sale price: $140,000
So on this deal, we were purchasing the house for $92,200 with an estimated repair budget of $8,870 for a total cost of $101,070 meaning the bank would lend $90,963.
We borrowed $17,500 from our private investor to cover the 10% required from the bank, closing costs, and money left over to start the rehab until the bank gives that money back through draws.
We ended up spending a little over $10,000 on this house, which was fine because there was room.
We listed it for $134,900 and got an offer on day 1 for $140,000. Subtract commissions, closing costs, concessions, requested repairs, and my private lender’s profit and we’ll walk away smiling and thanking Jesus for the opportunity he’s given us to make this money but also smiling that a new family will get to enjoy this home.
How did you find this deal and how did you negotiate it?
Google Ad.
How did you finance this deal?
Bank for 90% of loan + 10% from private investor.
How did you add value to the deal?
Added central air/heat, granite, carpet, vinyl floors, and stove.
What was the outcome?
We received a $5k over asking offer on day 1 and the house appraised at value.
Lessons learned? Challenges?
Going all out on flips isn't alway necessary. See what appraisers give value to, do that, and whatever else you feel a buyer may want that's within reason to still make a nice profit.
