2020 BRRRR - Greater Saint Louis, Missouri Area - COMPLETE

[Michael Fleet]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $70,500

BRRRR:
Purchase: $70,500
Renovations: $23,000
ARV: $134,500
Gross Rent: $1,100/mo

What made you interested in investing in this type of deal?

I acquired it through direct mail marketing after purchasing a data set of owners in the area with 100% equity at a location.

How did you find this deal and how did you negotiate it?

Direct mail marketing.

How did you finance this deal?

Hard Money to purchase and rehab, once occupied, refinanced with a duplex I own into a commercial portfolio loan

How did you add value to the deal?

COMPS provided from my realtor who assisted with the acquisition and appraisal going into the deal

What was the outcome?

Successful BRRRR. It is now occupied with our new resident paying market rent. Additionally, I got a nice little cash out refinance check at the end

Lessons learned? Challenges?

This was done all during the initial COVID-19 shutdown as I acquired the deal in March 2020. The refinance was a challenge as I had trouble finding a lender who was not inundated with PPP/EIDL government loans. Persistent paid off after getting rejected by about 10 lenders. The rejection was not due to the deal, it was because I myself was not local, living in Missouri.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes. I worked with a realtor just to make sure all the initial purchase documents were in order. Longhorn Investments was my HML during the initial acquisition and funded 100% of my renovations. Once my new resident was in place, Together Credit Union was my long-term debt service provider.

[Alex Bekeza]

@Michael Fleet Great work, what neighborhood of STL are you investing in?