Real Fix and Flip Before
Do you love watching shows like Fixer Upper and Flip or Flop? Watching the months of labor sped up over a 45-minute episode to reveal a gorgeous house is so satisfying. But as any flipper knows, there is a lot of elbow grease, time, and money that goes into rehabbing that ugly duckling into a swan of a house.
Well, here is a real fix and flip story. What gets us excited at Walnut Street Finance are successful fix and flip projects that we can experience boots on the ground together right with our borrowers. Sure, reality TV make it look easy…but there is so much action packed into any one renovation. Ask any fix and flipper how they make their projects a success. It comes down to good management of time, resources, and money.
Real Fix and Flip After
We’re going to turn the spotlight on a Walnut Street Finance project that used all three of those best practices. The best part is there are no commercial breaks!
Although this Walnut Street Borrower is a veteran with us, he’s much younger than your typical real estate investor. This was his third fix and flip project.
With more than 2,300 square feet, this adorable split foyer home had good bones, but needed a major overhaul throughout the interior. It was dated, with design idiosyncrasies from the previous owner that were interesting at the very least. Here’s what our flipper was up against:
Being that this was our flipper's third project, he’s had some time to figure out where his strengths are. He’s good at spotting a deal that he thinks could merit a good profit. His first step was getting a great purchase price. Next, he built an expert team of contractors to execute demo and renovation. This gave him the time to focus on property deeds, project timeline management, permits, inspections, and other paperwork. By splitting project duties between people who know their crafts best, he had a better chance of everyone staying on target and budget.
The Final Flip
After gutting this home, it was brought back to life as a stunning modern abode with an open floor-plan in the main living area, five bedrooms, and three baths. He paid meticulous attention to finishes and trim, which upped the appeal. He focused on the final touches, making sure that it was perfect. Additionally, he improved the street value by installing a gorgeous upper level deck, back shed, and landscaping the property. This doesn’t even look like the same house…
The Bottom Dollar
The property was purchased for $450,000 and renovation costs were $50,000. After renovation the house sold for $540,000, for a great return on this fix and flip - on time and on budget!
Fix and flip television shows can deceive on how long a project actually takes and how many hands are involved. It’s clear from this project that time and teamwork are major factors to turning a profit. If you sit on a property too long or draw out the rebuild, you’re are less likely to be successful.
Ready for your own project? Let us help.