All Forum Posts by: Alan Nellis

Thank you for the encouraging words!

Hey Brian,

Wow!  We should have done better but we didn't establish a work force/crew successfully from the beginning.  The original crew we were going to work with didn't pan out for the duration of the project.  Not to mention they were charging us to much money for inferior work.  So that is the first lesson I have learned.  You must establish a relationship with certified working contractors that you can count on to do the work according to your standards and your timeline.

As far as the hard money lender (Lima One Capital) is concerned I believe that the biggest issue was related to time.  We didn't anticipate spending as much time on the project as we did.  So each month we were paying the hard money rates we were losing money from our bottom line.  So having a reliable crew or two would have insured finishing the project in a shorter period of time.  Which ultimately would translate to a bigger profit.

We encountered a break in at the property during the late stages of the project.  Thieves broke in and cut out the copper pipes causing a flood in the basement.  SMH!  Another issue that arose was when we listed the house.  We couldn't find comps to support or asking price and cover the over budget.  We received full asking price at our first open house.  We actually had a bidding war that pushed the price up to $355k.  Our appraisal came in at $278k.  This opened up a can of worms that we just couldn't do anything about.  Both of those deals feel thru and we waited another couple of months to get a deal done.

All in all the education was priceless.  Our in experience cast us a considerable amount of time, money and heartache.  I would say that getting to know qualified professionals first would give any investor a much better chance at being successful.  Now I focus on being a real estate agent focused on helping aspiring investors and providing them with the support and knowledge that I gained over the last four years. 

@Mary K.

I would like to say thank you! I am positioning myself to be of great help to aspiring investors like yourself in the New Jersey market place. I am working diligently to build the relationships I need to be an invaluable connect for people just like you.

Reading you post makes me believe that there is value in the service I am trying to provide in my market place

Thank you again & good luck! Keep pitching forward no matter what!

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Newark.

Purchase price: $73,000
Cash invested: $150,000
Sale price: $290,000

Large two family residence. Full gut job, oil tank removal, and finished basement. Complete renovation electrical, plumbing and sheet roc. Two kitchens, three bathrooms.

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

I hoped I could break into the business with a start company that would help transform a community.

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

I found this deal thru a partner of mine via the mls. We offered the full asking price and the deal was accepted.

How did you finance this deal?

We used our own money to start the company and hard money to finance our first deal.

How did you add value to the deal?

I am the CEO of my organization and during this project I acquired my real estate salespersons license.

What was the outcome?

We successfully completed the flip and sold the house for the highest price at the time. However we did not make a profit on this project.

Lessons learned? Challenges?

I began the long process of learning this business from the ground up. I also learned what the term "skin in the game" really means!

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

We had a real estate agent working with us but I felt I could do a better job. Since I had so much skin in the game I believed know one could give my project the attention to detail that I could.

Investment Info:

Single-family residence fix & flip investment in Irvington.

Purchase price: $50,000
Cash invested: $110,000
Sale price: $259,900

Complete gut job. Full renovation. 3 bedroom, 2 1/2 bath, partially finished basement

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

This was my second flip and I was hungry to utilize what I learned from my first project a year earlier.

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

I found this property on the MLS and offered full asking price.

How did you finance this deal?

I used my own funds and worked with a hard money lender (Lima One Capital).

How did you add value to the deal?

I ran the day to day operations of the organization and was a member of the crew on site lost everyday.

What was the outcome?

We were able to sell the house and complete the project. The experience was invaluable.

Lessons learned? Challenges?

My biggest challenge was man power and managing my timeline. When I am ready for my next project I will have identified a professional, reliable crew and negotiated price and deadlines for the project.

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

I am a licensed realtor and handled all aspects of purchasing and selling this flip.

@Konstantin Boubev

I used a company called ERC for an oil tank removal twice. First flip & second flip in Newark & Irvington NJ. The cost was $1800 plus the cost of the permits (around $200) for a total of 2k. Let me know if you need any additional information.