I mentioned the other day that we had received an offer on The Corn House, but weren’t sure if it would actually lead to a contract or not. While I wasn’t confident it would happen, we were able to get the property under contract today, and we’re scheduled to close in early March.
This was the first rehab we’d ever done, and suffice-it-to-say, we’ve learned a lot since that project started. The biggest lesson was around forecasting financials and ensuring that we’re making smart purchases. It’s amazing how in less than a year we’ve gone from having no idea what to look for in a property to mentoring other investors on how to find, evaluate and capitalize on great deals. I can’t tell you the number of emails I get each week asking for advice, requesting the spreadsheets I created to do my analysis or running a potential deal by me to see if I think it’s any good.
Anyway, when we bought The Corn House, we had no idea what to look for, how to estimate rehab costs or how to properly analyze a deal. So, it’s not surprising that this project isn’t going to generate much profit for us ($4-6K at most); but it’s certainly nice that our very first investment will generate a profit, and more importantly, our buyers are getting a great house for the price.
I’ll have more to say about the deal — including financial details — as we approach closing and once I’ve done my final accounting on this property.
Btw, The Second Chance House is now formally under contract as well, and is scheduled to close the week of February 23…