A Longleaf Lending customer and experienced real estate investor made $110,000+ on a 4 month Houston-area single-family fix and flip.
The investor used a short-term residential hard money loan from Longleaf Lending to finance the acquisition and 100% of the rehab budget. We closed the property in less than a week.
Why was the flip was so successful?
- He is an experienced investor, having flipped over 30+ homes in the last few years
- The investor has a formula and a crew for houses in this price range – it allows him to complete comprehensive renovations in 2 months or less
- This formula gives him an edge and results in very accurate budgeting
- He benefited from Covid-related real estate market trends – more homeowners with work flexibility looking for more space in suburban/rural areas
Key stats from the project
Purchase price: $90,000
Rehab budget: $70,000
Sales price: $305,000
Hold time: 110 days
Days on market: 22 days
Net profit: ~$110,000
Challenges with this project
- This was a tough property to comp, for both the hard money lender and the investor – it was in a more rural part of Houston with fewer available comps
- The investor used very conservative assumptions that would still result in a successful real estate investment and return
- When finally sold, he flipped it for more than $50,000 above where he expected the market to be
- The property was in rough shape – additional contingency was built into the budget in anticipation of hidden costs