good deal
#Intreader of the Week Sarah Aviv Berger # Post 4
I do not believe in the term "easy money", I believe that success is the result of determination, perseverance, faith, thoroughness and more, some will call it "hard work".
Being an entrepreneur requires a variety of abilities and mental strengths, there is no room for falls and naps after failure, however there is plenty of room for learning lessons, improving methods, self-motivation, coping with multiple tasks and getting back on your feet fast, when I think about it, a bit like parenting ????
In a previous post I showed you a flip that got tangled up and today I want to show you an example of a flip that went easier.
The Off Market deal I found in my email winked at me very much, I immediately called Holsler who told me that there was an orderly showing on a certain date, I with strong gut feelings tried to convince him to show me the property before showing it to other investors, after long minutes of interesting conversation. Him let me see the property in front of everyone, "provided you come tomorrow morning" he said and of course I could not say "let me see if I can" after I convinced him to give me priority, so I said "yes" without knowing if really any of my staff will be Available in the morning to go there.
optimism is the name of the game!
I immediately called my partner the contractor and said to him: "Isn't it true that you are available tomorrow morning?"
As he begins to mumble something about an important meeting he has, he realizes the potential and says: I will make it happen!
If we do not have a first right, once they see the property to dozens of investors it will reduce our chances of winning the project.
Although this is an “affordable” property price, the challenge was to bring in the money,
At the time I did not have enough capital to buy and renovate enough, when I shared with the contractor that I needed to raise money he offered to come in as a partner.
The property was purchased in the name of my LLC and we made a JV agreement that defined the division between us, it finances the renovation and I finance the purchase and share in the profits.
Eventually a very interesting partnership was born out of this project and today we are doing a number of things together, not just flips, soon a new construction project on land we purchased in Pittsburgh, Pennsylvania.
The property, 3/1 rooms, 1500 Sq ft, in a suburb west of Pittsburgh, we purchased for $ 61,000, without inspection.
We added another bathroom, replaced an air conditioning system, upgraded the electricity and did a cosmetic renovation including: renovation of exterior cladding, flooring, kitchen, painting, lighting, all the fun !!
The renovation progressed without unnecessary dramas, no wood fell on the property, no unexpected malfunction fell on us, no professional fell in Corona and went into isolation and came to a savior, after five months of purchase the property was sold.
Here's what's interesting, numbers of the deal:
Purchase includes closing expenses - $ 61,000
Miscellaneous Holding and Hotch - $ 6,700
Renovation costs - $ 61,400
Total investment - $ 129,100
Selling price - $ 185,000
Net sale - $ 169,460
Profit on the transaction - $ 40,360
Yield - 31%
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