Purchase Date: 12/21
The Deal:
The seller was asking for $65,000, I contacted my realtor and asked her to get me in for a showing. We put in an offer almost immediately for $60,000. The next day my realtor told me that we didn’t get the deal, the seller had accepted another offer, but about an hour later she called me and told me that the previous offer was withdrawn and the seller had accepted my offer!!!
How Did We Find The Property?
We found this property through the Zillow App. We received a notification alert as soon as this property hit the market, based on search criteria that we had set up in the app.
How Did We Fund The Property?
We used a hard money lender – our first time doing this. The lender agreed to give us 90% of the purchase price ($60k) and 100% of the rehab cost. Because this was the first time doing this, and we were confident in our process, we only asked for $15,000. If I were to do this again, I would probably have asked for more money on the rehab. The way this loan worked, we had to pay 10% down ($6,000) and pay closing costs. then we were responsible for covering the first $5,000 in rehab costs. After that, we turn in our receipts to the lender, pay a $100 draw fee, and get a check back for $5,000. Because of the loan amount, I could do this up to 3 times, then I had to have the entire loan paid back in 6 months. If I needed to renew for an additional 6 months, I could do that by paying an additional 2 points on the loan ($1,200) which would be pre-paid interest, and I would have an additional 6 months to pay off the loan and refinance the property.
How Did We Fix The Property?
For this particular property, the interior needed work, but the outside was really lagging. We started by replacing all the windows, installing all-new windows, replacing the front & back doors, and installing new screen doors. Next, we went inside and installed a bathroom fan, new ceiling fans in all the bedrooms, and a new overhead light in the living room. Then we started addressing all our normal upgrades.
Before Video:
Update List:
- We sided the entire house and garage
- We installed a brand new front door and back door
- We installed new front and back screen doors
- We installed all new windows
- We installed a new hot water heater
- We installed all new lights throughout the house
- Removed all the old flooring & installed all new vinyl plank and baseboard
- We replaced the shower hardware, installed a new toilet, vanity, and installed a fan
- We painted all the doors and installed all new doorknobs and locks
- We painted the entire interior of the house
- We painted all the cabinets, installed new hardware & brand new countertops
- All new Whirlpool stainless steel appliances
- We replaced all the outlets & covers, as well as the light switches & covers
- And much, much, more!