Deal talk. My First Flip, The Police, The Hell & My Husband The Investor Warrior

Probate
Probate is when someone passes away and they have an asset (ie. Property, bank account, etc.) that has to go through the court system before it can be disbursed to the beneficiaries Probate properties come from heirs not wanting their deceased relative’s property. Good for investment and wholesaling opportunities.  The Mental Side of Real Estate
Get familiar with the process of who you’re marketing to Never get emotionally attached to a property You don’t want to become a motivated seller There is always a way  Walking through the deal
Kari went through probate records and sent out heartfelt letters to the person of contact for the deceased She got a call from an heir and went to go see the house She fell in love with the house’s charm and put an offer in on the house. After negotiating, they came to an agreement of $135,000 plus $4,000 in closing costs While under contract, they were debating on keeping the house to flip it, or wholesale it They got a cash buyer willing to buy the contract with a $20,000 assignment fee that would go to Howie and Kari. They ultimately chose to flip the property Got a $148,000 loan with a hard money lender at 14% interest with 3 points They set a renovation budget of $60,000 and they were planning on holding the property for 2-3 months. They finished the renovation and went way over budget Put the property on the market for $300,000 Went under contract for $280,000 Buyers found out that flood insurance would be $3,000 a year and could not afford it Howie and Kari found flood insurance that would be capped at $1,800-$2,000 a year. They pitched this to the buyers and they accepted. After getting the house appraised, the bank asked for the inspection report and wanted proof that the house was structurally sound. When that was cleared, they got the clear to close The Math
Buying Price
$135,000 Closing Costs
$4,000 Rehab Costs
$75,000 Loan Costs
$15,000 Holding Costs
$6,000 Paying Loans Back
$20,000     Selling Price
$280,000     Total Profit
$25,000

How to avoid major budget issues
Have the contractor estimate the budget for you Have multiple contractors put bids on the project Have a contingency factor of 20%-30% Don’t over improve the house How to be a part of Deal Talk
Send an email to kari@TheInvestorWarrior.com, to be a guest on our show talking about your deal!
Go to DealMachine.app.link/warrior to get your special offer for the Deal Machine app!