5337 E. 41ST STREET, INDIANAPOLIS, IN 46226
"The flip that flipped me"
This project was actually our first fire baptism on the market.
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We established a relationship with a good realtor in the field who brought us this deal from outside the market (Off Market).
After we put the property on a contract (*and reserved our exclusivity to the property) at a price below market value we started running our in-depth tests.
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We talked about the property with other local realtors who confirmed the value of the property after the renovation (ARV), 3 contractors came to give quotes for the renovations and 2 property managers visited to estimate the rental price he would charge and give their opinion on the neighborhood and area. Finally a licensed inspector also arrived and checked that there are no surprises we have not seen so far :)
We obtained the financing through a loan from Hard Money Lender (relatively high-interest loans **)
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We contacted them through forums dedicated to US real estate investors.
We brought $ 20,500 from the house (NIS 70,000 at the time), and they paid us the rest of the price for the purchase of the property and the full renovation costs (financing of about 75% of the purchase price + 100% of the renovation price).
The renovation began in early October 2020 and was initially estimated to last about 3 weeks.
In retrospect, it can be said that almost everything that could have gone wrong went wrong - disruptions in the schedule, our inadequate financial management, our property was broken into, a dispute with the operating contractor and more.
As entrepreneurs, we made a lot of mistakes - both at the financial level and at the level of managing the people in the field.
To some extent we wanted this to happen very much, especially during the first project and especially during our participation in the amazing ProjectX escort program.
We learned a lot from the process, both at the professional level and about us as entrepreneurs and managers.
We come out of this project with a deeper understanding of the meaning of our doing in the field, with better mental management ability, and especially with a great deal of appetite for our next projects and partnerships in which we will assimilate the conclusions and lessons we have produced in this miraculous process!
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Feel free to read more about our renovation process on our blog!
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* (In fact, when we see a deal, we analyze it quickly (no more than 10 minutes) based on the approximate numbers and submit a bid - a deal that is not "under contract" does not belong to us and there is no need to delve into it at this stage. Has the exclusivity for the purchase of the property, given the performance and passing of our extensive inspections)
** On occasion we will go into more detail about working with HML and a little about the US financial system.
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