Flip #1

My first baby.  Born January 19, 2016.  A 1280SF 3 bed/1 bath twin.  A REO that had a significant roof leak and was vacant for a couple year.  By this point I had looked at 25-30 properties.  I was working with a new realtor that I met through one of my best friends.  We were a great fit for each other.  She was a only a few years into the business and made me feel like a important buyer, scheduling 4-5 properties for us to look at every weekend.  She exuded a confidence that she would find me what I was looking for.  I fed off her confidence and lo and behold we found one.

The property had been on the market for 10 months.  Listed at $74,900 I made my 1st offer at $25k.  I surprised we even got a counter offer.  Don’t remember exactly but only a few thousand less than asking.  After a couple of counter offers we verbally agreed on $55,500.  It was a much needed win as I was becoming desperate for any sign of progress.  Closing was set for December 22, 2015.  A few days went by and still no contract from the bank.  My heart was broken when my agent told me they were pulling out of verbal agreement and putting property back on the market.  People who know me would say I am a calm person but I was pissed.  Pissed off and defeated.  I got my hopes up and let it become emotional.  Everything I had been reading said it would not be easy and set backs would happen.  Stay persistent was beaten into my head.  With that in mind I wasted no time jumping back on the internet looking for the next property.

A month passed and the bank reached back out to see if I was still interested.  The bank installed a new roof and I upped my offer to $56k.  They countered and we settled on $57,500.  I looked at it as if it cost me $2k to install a new roof.  Staying positive and persistent paid off.  The same friend that introduced me to the realtor was the general contractor.  He was there full time and received a daily rate plus a % of whatever profit we hoped to make.  At the time it felt like it took forever but we completed the rehab in 105 days.  We were all in $115k which was about $15k over our original budget.  We got a little lucky that the market appreciated to help offset us going over budget.  My buddies work was outstanding and his custom touches gave the house much needed character.

We listed at $159,900 and had a full price offer with 6% sellers assist after 6 days on market.  I accepted and had a closing date set for mid June.  During home inspection the sewer stack sprung a leak.  One of many you got to be kidding me moments but we were getting use to dealing with bumps in the road.  Sitting here now it is hard to express how all in I was.  The stress of being over leveraged made any form of relaxing very difficult.  Never going through the process before was very unsettling.  Waking up trying to catch my breath in the middle of the night was a real thing.  Open credit cards just to max them out in a week.  I borrowed money from family and friends who I cannot thank enough.  I was confident I knew what I was doing but doubt can be a pesky son of a bitch.  I had amazing support from everyone around me especially my wife.  With the help of everyone around me we closed on June 24th 2016.  I received a check for $139,179.93!  Holy shit!  Flipping houses works!  After all expenses I walked away with $21,000 profit.  The profits will come an go but the confidence, experience and memories will last forever.  I can’t wait to do another.

 

Leave a Reply

Your email address will not be published. Required fields are marked *