Real estate investors Bill and Debbie White recently completed their first successful house flip with the help of FasterFunds Lending, a top-rated hard money lender in St. Louis. Their journey is a great example of how investors can leverage a well-planned rehab strategy, expert coaching, and reliable lending partners to achieve profitable real estate deals.
Finding the Right Property
Bill and Debbie, both experienced real estate agents, decided to step into real estate investing last year. With the guidance of real estate coach Dustin Hoog, they found a property listed on the MLS—a home in Blackjack, MO, that had been sitting on the market for 64 days. The property was initially listed in the $160,000s, but they successfully negotiated an offer of $132,000.
Their goal as first-time investors was to focus on a property that required mostly cosmetic updates rather than a full gut rehab. This property fit the bill, needing improvements such as new flooring, minor structural fixes, and upgraded electrical and plumbing systems.
Financing with FasterFunds Lending
To fund their purchase and rehab, Bill and Debbie secured a fix and flip loan from FasterFunds Lending. With a straightforward lending process and fast approvals, FasterFunds enabled them to close quickly and focus on their renovation work. Their hard money loan was structured with 1% monthly interest and an origination fee, making it an ideal solution for short-term real estate investments.
The Rehab Process: Challenges & Solutions
Electrical System Overhaul
One of the biggest hurdles was dealing with an outdated electrical panel. Initially, their electrician approved the panel, but the city inspector required a full replacement due to missing permit documentation. The unexpected $3,000 expense was twice their original estimate, but they managed to stay within budget by cutting costs elsewhere.
Plumbing Stack Replacement
During the walkthrough, Bill, who has 28 years of construction experience, noticed small pinholes in the cast iron plumbing stack, indicating leaks. The replacement cost ended up being around $2,900, a necessary investment to pass Blackjack’s city occupancy inspection.
Kitchen and Bathroom Updates
Instead of a full kitchen renovation, they opted to refinish the existing cabinets, install new granite countertops, and upgrade the backsplash—a cost-effective approach that modernized the space without exceeding their budget.
For the bathrooms, they regrouted the tile floors, installed new vanities, and replaced outdated shower doors, instantly giving the space a more modern feel.
Staging for a Faster Sale
Following Dustin’s coaching advice, they decided to stage the home, including the basement, to create an inviting space for potential buyers. This decision proved to be valuable, making the home look more spacious and move-in ready.
The Sale & Profits
They originally listed the property in September at $199,000. Their first contract came within a week at $215,000, but the buyer’s undisclosed IRS debt led to loan denial just before closing, causing a six-week delay.
The house eventually sold in December for $206,000. Despite the setbacks, they walked away with a net profit of $14,000—a strong first flip that provided valuable learning experiences and set the foundation for future deals.
Key Takeaways for Investors
- Find undervalued properties: Bill & Debbie targeted a longer-listed home and negotiated a great deal.
- Work with experienced lenders: Using FasterFunds Lending provided the flexibility needed for a smooth rehab and sale.
- Be prepared for the unexpected: Budget for contingencies, as city inspections can result in unplanned expenses.
- Stage your property: Professionally staged homes spend 73% less time on the market and attract more buyers.
- Leverage real estate coaching: Working with an experienced coach like Dustin Hoag helped them make informed rehab decisions.
What’s Next for Bill & Debbie?
Encouraged by their first successful flip, Bill and Debbie closed on another investment property the following Monday and have a third flip set to close soon. They are now scaling their business, leveraging their knowledge and connections to grow their portfolio.
Ready to Start Your Own Flip?
If you’re a real estate investor looking for a hard money loan in St. Louis, FasterFunds Lending can help you secure fast funding for your next fix and flip or BRRRR investment. Contact us today to get started! (636) 223-4262
