All Forum Posts by: Aaron Lynn Brown

Initially when i started getting into real estate I had a former employer who had become a mentor and then partner and I actually partnered with him on a deal that he had completely analyzed, vetted, took all the risk and held all the investment on and my role as 100% labor, while not the most lucrative on my end, was a HUGE learning experience and that was worth SO much more than any dollar amount that I could have made.

But I'm definitely looking forward to working with more partners I. The future.

And thank you all for all the encouragement and kind words!

I'm a seasoned contractor newly relocated to Chandler and looking for some side work / Handyman stuff for the short term.

I offer exceptional work and attention to detail, an immense knowledge of contracting and real estate in general. If you're still looking for someone feel free to message me here and we can discuss further what it is exactly you're needing.

I'm currently looking for partnerships in the Tucson / Oro Valley area, would love to connect and chat about the idea. Feel free to reach out to me through DM here on BP if that's something you're interested in!

If you're looking for the Real Deal One Stop Shop kind of Contractor, as Rare as that actually is these days, I could definitely fill that role. I've recently moved back to AZ from Indiana as all my immediate family is here now, and partnering with someone on some investment properties is ideally what I would like to be doing at first while I get settled out here. 

Are you still looking for your contractors and if so let's get in touch.

Quote from @Don Konipol:

Quote from @Aaron Lynn Brown:

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $66,000
Cash invested: $30,000
Sale price: $169,000

I grew up next door to this property. It was originally homesteaded in 1890. I renovated every single inch of this property. I took down every interior wall and completely changed the Floorplan. It was originally a 3 br 1 ba at only 950 sq ft. It is now a 2br 2ba, has a Master Suite, open Floorplan and is gorgeous throughout. I had to grade and level the entire property and plant new grass and it's now one of the prettiest lawns on the entire black. A detached garage was built off site and delivered and is the only work I didn't do, although I did wire the building and install the garage door. This was a labor of love and there were so many unique and challenging aspects to the flip. It's where I cut my teeth and tested all my knowledge and skills set. From the floor joist being cut from the sill plates and the entire house needing brought to level, the foundation requiring correction, to the no slope rubber roof leaking and needing replaced when I say I renovated every square inch of this property I mean that literally. And I did 100% of the work myself. My family home was next door so I did all this work while working full time and maintaining a household and family.

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

I lived next door, growing up it belonged to the original homesteader, a little old lady named Thelma. I used to mow her lawn and shovel her side walks. After she passed it became a rental to a slum land lord and after one of his tenants destroyed the property while having 8 people living inside it's 950 sq ft, he and I had a conversation and I bought it from him as-is for 69,000 and he didn't have deal with the mess they left. I only saw $$$ 😁

How did you finance this deal?

I obtained a commercial loan that was a 1 yr interest only and required 25% down which I borrowed from my step father to be repaid after closing plus a $5000 payment. The commercial loan allowed me to draw up to 85% of the ARV as needed and allowed me to fund the Renovation. I had to extend the loan once and completed the entire thing in just under 2 years while working full time.

How did you add value to the deal?

Changed the Floorplan from 3br1ba to a 2br2ba w/ Master on suite. Added a detached garage. And I put all quality materials and high end finishes throughout. Crown Molding. Custom Cabinetry. Etc etc

What was the outcome?

A result not typical to a first time flippers first deal.

Lessons learned? Challenges?

Yes.

All of them.

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

Scott Pfieffer

First of all, congratulations, on a great job well done.  You deserve every penny of profit you earned!
Look, sweat equity is great. But, most BPers either aren’t interested in, or like me have no talent for doing the carpentry, electrical work, plumbing, etc. in renovating a house.  So we’d have to pay a contractor.  In your opinion, what amount would you have to have paid out for someone else to perform the work you did? 

 Thank you for the Congrats!!! This was a labor of love and I did earn and deserve all of the accomplishment and success of that first deal!

I was in a very unique position and also very fortunate to have developed the skill sets and abilities that I have over the decades. As such I realize what an opportunity I had and invested my all into it.

To be clear, the goal in my real estate ventures is NOT to swing all the hammers, run all the wires, or till and grade all the properties. All the hard work it took to get myself into a position to invest was not kind on my body. I had a back surgery at 34 years old, and ultimately I want to be passively investing, my sweat equity was the only capital i had to get started, so I utilized it well.

I also became a licensed and insured general contractor in the state of Indiana and the income from contracting was used to further invest. Because of my experience contracting I can tell you exactly what that deal would have cost had I hired out all the labor and the deal would have been very upside down. I would rough estimate that deal at approximately 100k. Easily.

And that is a shining testament to the value of sweat equity.

 There was no labor cost. As I did all the work myself. And this investment was the next door property to my Family residence, which was very convenient.

you would have to understand my market and where I grew up. Auburn, Indiana. Not the most expensive housing market. Also I shopped very frugal, I would buy a lot of material wholesale or through auctions, and also I had the ability to buy from a former employer, a manufactured housing factory, that was also a huge savings for me.

I had to do this deal this way. It was the only way I could afford my first flip.

Absolutely again!!!

Sadly, due to a family crisis, I had to leave my hometown and market..  I've relocated to Phoenix AZ to be with the remainder of my immediate family but will be investing here or somewhere close by like the Tucson / Oro Valley area

But I can't wait to get back to it. Carpentry is something I'm very passionate about and real estate investing was very quickly being very lucrative for me and also something I'm passionate about learning and becoming successful at.