RICHMOND FLIP SOLD! · PREA Army

RICHMOND FLIP SOLD!

Fam, sharing a WIN today with my Microflip (condo flip) in Richmond BC, Attached Pictures! Picked up the cheque from my lawyer’s office today and now it’s time the investor pay back time, I had bought this flip with 95% OPM using creative financing Strategies!

* Bought for 610k on May 17th 2024 and sold for 712.5K on Aug 2nd 2024.

* 35K Reno cost (Reno’s completed in 12 business days from demo to staging).

* Time duration < 3 months (78 days from buying date to sale closing date to be exact).

Few challenges and lessons learnt in this project:

A. Financing: Private Mortgage could be expensive affair and quickly eats into your condo flip profits, make sure to factor in legal charges paid to lenders lawyer, lender fees, broker fees, legal opinion letter charges if buying under a corp, and in most cases your lawyer might charge a premium in fees to review private mortgage documents too. If I could partner up with someone who could bring in a HELOC funding, I would have happily split the profits and paid them their share of what I had paid to MIC and extra lawyer.

B. Private Lender: I had an investor who had committed to lend 50K (Creative Financing again, secured collateralized promissory note loan agreement we had in place for 18% interest) changed their mind and back out of the deal 3 days before closing, this put me in a tough spot, fortunate another investor from this very own group helped me last minute. Make sure you get firm commitment from the lenders and have paperwork completed in advance and secure the funds a week before closing to avoid any last minute changes.

C. Security Issues: Lockbox Stolen, My lockbox used for contractor access got stolen (I had fob and master building key inside along with unit key), and the building security was compromised, and there was a break-in next day. I had to work with strata and council to rekey the building, re-program the fobs, and had to take tab on part of expenses which comes to around 3.5K, this was an unexpected expense. My insurance deductible was 2.5K, and was not worth it going this route with claims (I would have been better paying slightly higher insurance premiums for a lower deductible policy).

D. Renovations: Renovating older condos always brings in interesting challenges working with old plumbing and electrical that may be out of code requiring extra work, leveling floors and skim coating the walls and ceilings would be a mandatory requirement to have a smooth paint finish.

E. Realtor Bonus : Make sure to offer buyer realtor bonus as an added incentive that helps getting strong offer and gives you a much greater negotiating power. I had listed this condo for 699K originally, had 20+ showings with no offers in slower market now in Vancouver, relisted this for 728K with 4K realtor bonus after a week, that worked like magic in getting more offers and interests and finally getting a quick sale.

If you would like to partner up with me or be my private investor for next deals (put your cash or secured funds to work), DM me and let’s connect!

Shout out to my realtor

@Jas Chahal

for a fantastic job in negotiating a win - win deal on my buy and sell and finding a good buyer for my property in a current slower market!

Cheers, Kash

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