All Forum Posts by: Ashley Hamilton

DETROIT!!!!! Check out my lasted forum post for a 

complete breakdown of my Cashflow and BRRRR. Its called what I've been up to after my Podcast #331

Also I just wanted to mention that David Greene has also be a great asset after the show, he's even sent me a couple referrals. All the stuff that I'm doing now is in his book BRRR so make sure you pick a copy up.

Hello everyone , 

Thanks so much for the great positive feedback that I'm getting on my podcast appearance episode #331 . I really appreciate everybody that has reached out to me and I promise I will be returning all inquiries. To reach me quicker, get a more in depth look at my deals and day to day please follow my social media, the link is in my biggerpockets profile. 

So a week before I did the show  I was really pumped up about finding  financing so I can grow my portfolio at a more quicker pace . After I recorded the show  I started working with three lenders  One Credit Union lender, One Bank lender  and a Hard money lender . It was never my goal to have any debts on my property and I definitely don't recommend carrying a lot of debt  but I did want to  have some experience in all aspects of Real Estate  and also I'm trying to buy a million-dollar apartment building. So I'm happy to announce that I closed on my first brrrr which was my multifamily that I talked about on the podcast. So I purchased the property for $14,000 last year put $10,000 in the property rented it out, 6 months later put another $12,000 in for a new roof. So my purchase price was $14,000, and I make $14,400 a year in rental income. But my total investment was $36,000, I just got my appraisal back for $50,000 and I'm able to take out $35,000 of that at 4.75%. Not to mention I already made over $18,000 in rent since I purchased the property a little over a year ago. 

Next I closed my first Hard money loan, I got it under contract for $60k and the ARV was $99k, It took 75 days to close this deal. If though I don't recommend this, while we were waiting to close I completed the renovations for $20k. (I had a promissory note that if the sale didn't go through I could purchase on land contract or be paid back). The first appraisal came in at $138k, a week later, I couldn't do the deal with the first lender and had to take everything to a new hard money leader. Since I already had everything from the first lender the second deal was done fairly quickly and we had the second appraisal done 2 weeks later, it came in at $155k. So I closed the deal with a purchase price of $80k and its worth $155k and the good thing about the second hard money lender is there's no seasoning period so I doing a cash out refi, which closed next week and pulling out $112k, after paying back the lender $54k I walk away $58,000 on my first Hard money deal and not to mention the house has been rented for 2 month as of Aug 1st at $1200/month. Also they just opened up a 17 million multi use facility around the corner so after the first year rents will be increased to $1400/month. 

Then while working on my next cash-out refi, I was looking online for comps to see what my value maybe, I stumbled across a house for sale 3 doors down for $10k. It was raining and my power went off, It came back on a couple minutes later, but I was already doing something else and forgot about the house. The next day I sat at my desk to start working and the house popped back up and said I have 36 seconds to bid. Without even seeing the interior or doing due diligence I hurry up and bid $11,500, one minute later my offer was accepted. So I turned in all the paper work and now after 15 days I have a clear to close on Aug 6th. I was so anxious to see the inside, I went to the house in hopes that a door or window was left unlock or at least I could peek in the windows to know what the condition maybe. When I got there all the doors and windows was locked, so I got in my car ready to leave. The I remembered I have my HUD keys since I'm an agent, and even though this isn't a HUD home I still would check. I went to the side door and to my surprise the key worked. I started to think to myself,what are the odds that I had the keys to the house the whole time, also what are the odds that I sat at my desk and the property popped up with 36 seconds left to bid.

This whole experience is to good to be true, then I started to think about the Law of attraction, and how now that I've been a member of the podcast and constantly surrounding myself with like minded people, good things are happening almost everyday. Now back to the story, I know I may have been foolish to buy a property site unseen but remember I own a house on the street already that rents out for $850/month. During the 15 days waiting on title, the appraisal came back for the cash-out refi on my house down the street at $55,000. The new house is closer to 8 mile, has same floor plan but has a deck, finished basement, and a 2 car garage. And I already have 2 potential tenants lined up for September 1st at $900/month fingers crossed. So in 6 months I should be able to do a cash-out refi on this property and I'm sure it will appraise for at least $55k like my other house down the street did. At that point I would have invested $11,500 for the purchase and $7k for the renovation, which is $18,500 and if rented out in September I would have collected $5400 in rents, so I'll be out of pocket $13,100 and I'll be able to pull out $44,000 which is 3 times my investment while my tenants pay down the note. If this isn't a perfect brrrr I don't know what is, and this can be done numerous times right here in Detroit. 

I know this is a long one sorry, but lastly I wanted to say this past Tuesday Brandon Turner visited Detroit and I got to spend about 4 hours with him and Ryan Murdock. I have never experience anything so powerful in my life, just being around these guys got my blood pumping and the energy was electric, I couldn't sleep for 24 hours after the meeting. These guy's are the real deal, I know they must've of been tired but they stayed and talked to so many people,even stayed 1 1/2 hours later. I'm so grateful to have met them. Being on the BiggerPockets podcast has changed my life forever and I can't wait to see where this next level takes me. 

`Ashley

Thanks everyone for the great feedback. 

Hello,

These are great strategies, I prefer to invest in area's where I can do cash deal and not have a massive mortgage. Here in Detroit, You can purchase a property for under $30k and rent it out for between $700-$900/month. So you'll have very low cash invested and if there happen to be a recession, you wouldn't have a mortgage payment, so you can just lower the rent. For example in a high market your house rent for $800/month, then in a recession your tenants of 5 years have to move because they lost their job, you could offer them to stay at a reduced amount of rent say $400/month until they get back on their feet. Since you don't have a mortgage payment your only expenses would be taxes, insurance, and maintenance. For small repairs like broke door knob, or leaky faucet, you could have the tenants fix them themselves since your already reducing the rent and you can appeal the county to lower your taxes because the value has gone down. If you had a mortgage you wouldn't be able to lower the rent because you'll have to make a mortgage payment and wouldn't want to have your expenses higher than you income, so you'll be forced to find another tenant. So that my friend is a recession proof investment. Please check out my podcast episode #331 for more info about Detroit.

Maybe I should have read his long, before I replied, where is the proof that the property was purchased for $3,000,  also how much was invested just because it was sold for $93,000 doesn't mean that was all profit,  also that person had a flip strategy in mind, versus me having a rental strategy in mind. I'm sure some of my properties will be worth $93,000 if I went in and remodel the whole thing and replaced it with granite countertops. But since I'm turning them into rentals  those things are not done.  Nobody's coming to invest in Pontiac  and if they do  that's fine but Detroit will always be  a great Market.

This is my  last response because at this point I feel like it's just a grab for attention. Darius is not fit to write a multiple paragraph opinion about my investment strategy because he has never been on the show, or personally talked to me about it.  That show is edited and some things are not included. However he could personally asked me MY investment strategy which really wouldn't matter because that's MY investmenting strategy. I could have started from day one and have a million-dollar portfolio if I wanted to but keyword I did not want to, I prefer not to be in massive amounts of DEBT, I prefer not to live above my means, I prefer not to have to answer to anyone and control my own life,  I prefer not to work for anyone else, I prefer not to depend on bankruptcy to bail me out and take responsibility for any debt that I do occur, I prefer not to try to get the most attention because how big my profolio is  versus doing  smart investment which is not getting in massive amounts of death just so I can sound appealing on a podcast.

It's easy to get into debt, it's not easy to build a portfolio worth over a half a million dollars from scratch with no help from Banks or family, and help and give back to your community at the same time while providing Financial Freedom. 

So I'm sure the easy way out is a lot of people strategy, but not mine. Lastly who knows what my profolio will be worth, some of my houses will appreciate for more than $100,000 in equity because everyday the market changes in Detroit. However, what we do know for sure is that I will never have to file bankruptcy or be foreclosed on. Other investors who have massive amount of debt on their properties and the market can crash at any moment and then the house will be worth less than they owe on it and we're back in 2009 again. So my strategy is recession-proof, no failure, no way to lose. While other strategies maybe take a risk and depend on equity.