Investment Info:
Single-family residence fix & flip investment.
Purchase price: $850,000
Sale price: $1,250,000
Off market owner was in financial distress and walked away with $200k after all his debts were paid off vs letting the bank take the house. Renovations on this 3bed/2bth 1,000 sq ft house were $150k
What made you interested in investing in this type of deal?
Helping the homeowner have other options as he had various debts and the house was in distressed condition.
How did you find this deal and how did you negotiate it?
Another investor brought it to me to partner on. I flew there and offered to help find the seller a rental, pay for moving/storage and 6 months rent upfront.
How did you finance this deal?
Private money for the gap and hard money for the rest
How did you add value to the deal?
Fully renovated the house and added an extra bathroom.
What was the outcome?
We were expecting to list at $1.125 million but the market kept rising and once it was finished we listed at $1.250 million and both made a little over $100k each!
Lessons learned? Challenges?
Initial renovation costs were $100k and once we started found extra termite damage plus added several change orders to shoot for the higher price that we didn’t necessarily need.
