All Forum Posts by: Blake Schreckhise

@Jacob Fitzgerald

Yeah I met with one of the heads at Schuber Mitchell and was really impressed by what they do!

@Jacob Fitzgerald Yeah I got in with the Limbird Real Estate Group, which has been pretty awesome so far!

I just moved to Bentonville, AR. I'm a real estate agent and although I'm new to the area I'm not new to selling. I focused on helping investors in my last market and I found that very fulfilling. Looking to do that again up here. Just wanted to see if any meet ups are still happening with Covid and if so which would you recommend.

Thanks!

Investment Info:

Single-family residence other investment.

Purchase price: $160,000
Cash invested: $1,000
Sale price: $209,900

This happened to be another accidental money maker. We actually bought land and built a house with the intention of staying there for quite a few years. Life happens of course and we decide to move after living in the new house for about five months. It ended up being a great sale and profit so can't complain too much!

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

Working with the builders as they built spec homes. They offered to build a custom home for myself and at the time I had intentions of doing further work with them. Thought this would be a good way to get started since I could more easily finance for my personal house.

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

I bought the land from a fellow Realtor that I have a good relationship with. He had just bought over 300 acres and I needed a small tract so he split me off six acres and there wasn't much negotiation he made me a good deal at $18,000 and I took it.

How did you finance this deal?

I had an in house loan for the majority of it, but being a self employed real estate agent lenders don't like to count your income very well. Had to get a loan from a friend for the difference. Was going to pay him off with the refinance but since we sold paid him off then.

How did you add value to the deal?

My wife made the floor plan and made all the design choices that made it sell so quickly. I just made sure we stayed on track with the contractors.

What was the outcome?

Very little money in up front and after fees and everything we walked away with over $40,000.

Lessons learned? Challenges?

Be much more specific with your expectations up front. We are easy going but a lot of issues could've been avoided if we just had a clearer plan from the beginning.

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

I'm my own real estate agent, so definitely recommend! The builders T and R Construction in Johnson County AR are excellent builders.

@Bob Norton I'm not a fan, haha! From September of last year I've moved 4 times and will be moving again in about 6 months. I hope to get to a place in the next year or so to stay for at least 3 or 4 years. But being a real estate agent, whenever I get that buyer that I know would love my house and I could get top dollar, it's hard to ignore it.

Investment Info:

Single-family residence fix & flip investment in Lamar.

Purchase price: $55,000
Cash invested: $250
Sale price: $78,000

My first house, and first flip.

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

I had just got licensed as a real estate agent and didn't own my house. Felt like a fraud and I needed to overcome that. Starting in a new career I didn't have a lot of money to work with.

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

My wife found it on the MLS. We actually paid full asking price for it. The seller needed to replace the siding so buyers could get a secondary market loan on it. She refused to do it for a long time then when it would sell she dropped the price from $60,000 to $55,000. We weren't waiting for this to happen just happened to be in the right place at the right time.

How did you finance this deal?

USDA-RD. Loan type for rural areas, buyers with lower income, and you can't own any other homes.

How did you add value to the deal?

We painted the exterior, and finished a few trim pieces inside. Seller had remodeled to the studs on the interior before we got there.

What was the outcome?

Sold it for $78,000 just over two years later when we needed a bigger home for our family. Didn't pay capital gains taxes since we lived there for over two years. Didn't put it on the market had a buyer in hand.

Lessons learned? Challenges?

Even your home can be a huge income maker for you. Don't underestimate the power of real estate even if you don't know the whole picture yet. Getting started opened my eyes.

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

Of course I represented myself so I would certainly recommend Blake Schreckhise, HA!

Investment Info:

Single-family residence fix & flip investment in Lamar.

Purchase price: $55,000
Cash invested: $250
Sale price: $78,000

This was actually and unintentional live in flip. I had just got my real estate license and was still renting. I felt like a fraud to not own a home so my first closing was buying this house as my personal residence. Because it would be my personal residence, was in a rural area, and I was under a certain income threshold I was able to get a USDA-RD loan. This meant I need no down payment and they rolled all my closings costs into the loan. I had paid for an appraisal ($500) and a home inspection ($250) up front and at closing they paid me back for the appraisal so all in it only cost me $250. I was representing myself as an agent so I did get a commission check for $1,650 on top of all that. The repairs were very minimal re-painted the exterior and finished trimming and painting the inside. Lived there for 2 years in which time the local inventory for listings that were livable under $120,000 were very tight. This never hit the market I had a buyer that needed this exactly and got full price the same day I showed them.

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

I had just got licensed as a real estate agent and didn't own my house. Felt like a fraud and I needed to overcome that. Starting in a new career I didn't have a lot of money to work with.

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

My wife found it on the MLS. We actually paid full asking price for it. The seller needed to replace the siding so buyers could get a secondary market loan on it. She refused to do it for a long time then when it would sell she dropped the price from $60,000 to $55,000. We weren't waiting for this to happen just happened to be in the right place at the right time.

How did you finance this deal?

USDA-RD. Loan type for rural areas, buyers with lower income, and you can't own any other homes.

How did you add value to the deal?

We painted the exterior, and finished a few trim pieces inside. Seller had remodeled to the studs on the interior before we got there.

What was the outcome?

Sold it for $78,000 just over two years later when we needed a bigger home for our family. Didn't pay capital gains taxes since we lived there for over two years. Didn't put it on the market had a buyer in hand.

Lessons learned? Challenges?

Even your home can be a huge income maker for you. Don't underestimate the power of real estate even if you don't know the whole picture yet. Getting started opened my eyes.

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

Of course I represented myself so I would certainly recommend Blake Schreckhise, HA!

@Jeff Copeland Great response!

@Melonie Dickson I’m a Realtor and 99% of the time I strongly recommend an inspection for all the reasons these commenters have stated. However I have been in bidding wars mostly for bank foreclosures and the cleaner the offer is with less contingencies the more likely it is to be accepted. That’s how I tell my client and let them choose how much risk they are willing to take.