All Forum Posts by: Ben Tilbury

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $450,000
Cash invested: $140,000
Sale price: $710,000

-Mold Infested Flip
-4 Bed
-2 Bath
1380 sqft

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

We saw a way to help out the seller in a time of need and there was a large value add play for someone who had the money and experience to take care of the major leak and mold issues.

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

Cold Calling and just worked closely with the buyers over a few months to figure out what worked for them and then came to a handshake agreement.

How did you finance this deal?

Traditional Financing and a lot of cash.

How did you add value to the deal?

Mold remediation and full renovation of the interior, exterior, and landscaping.

What was the outcome?

Sold in 7 days with multiple offers for $35,000 over asking price.

Lessons learned? Challenges?

Went over budget because we hand a lot of custom additions to make it unique and stand out.

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

I am a realtor and investment specialist. Feel free to contact me, always looking to network and/or partner with like minded individuals.

Well that’s awesome! I don’t think I’ve even been there yet if it just opened. I’m totally down to meet up when I get back to town Sunday or next week. I’m up in Sacramento checking out some properties and visiting family. 

Hey @Keegan Burkholder welcome to BP. Where on the central coast are you from? What markets are you guys operating and wholesaling in? 

Most cities and/or counties have a size limit so just build up to your limit and maximize usuable living space if you can or do a two car garage below with living space above the garage. Here the more bedrooms the better so if you can fit 3 that's great but the city or county you're in may limit you to 2 depending on size allowed plus if you're on city water and sewer vs septic that may play a factor as well because they may require a separate septic system which is $$$. Check with your local building department for the local ADU bylaws.

I’d say sit down with a few active agents for advice or interview with some other brokers. Are you located in Santa Maria? I’m happy to meet for lunch to give you my insights. I was in your same shoes 3 years ago. I ended up going with Keller Williams because of their training and support and mainly their culture. It’s like a family and I love everyone I work with. There are lots of great brokerages out there just make sure you go with somewhere that you connect well with and fit into their mission and culture otherwise and make sure you’re happy with the splits and people you work with otherwise you’ll end up switching brokerages and brokerage hopping like tons of agents do while they spin their wheels thinking it’s the brokerages fault when really they just aren’t producing so then they end up quitting real estate. 

@Dylan Barrett Hey Welcome to the BP Family! I’m was born and raised in Discovery Bay (Far Far East Bay) but moved down to SLO in 2003 for school as well and have been here ever since. Sounds like you’re on the right track with const. management major and background in construction with your family. I say embrace what you know and if you’re passionate about it the money will follow. I’m a realtor here in SLO and have a flipping business and also am putting together a syndication for multifamily properties. I’d be happy to grab coffee or lunch or to meet at some of our properties to show you what we are up to locally. Feel free to reach out. Have a happy New Year! 

@Ronald Starusnak

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@James Peirce I like that you are thinking outside the box. In our market here in SLO you’ve got to be creative to make deals work, the 70% rule is a good base but it’s not fool proof and it always depends on the property. I’ve had deals under contract that I could have bought at 70% but then the renovation costs were way too high ($250k) so it killed the deal. I flip homes and I’m a licensed realtor here on the Central Coast, I’d be interested in discussing your deal in more detail and possibly even partnering if it was a good fit. I’d obviously have to see the house to see if your numbers and estimates work, cuz $50k isn’t much of a budget. I haven’t done a home that has cost less than $140k in renovations yet. 

Also maybe your mentor and you just have different end goals, that’s the beauty of real estate there are endless strategies. Shoot me a PM

Hey @Nicholas Doyon welcome to the central coast! There are definitely some house hacking opportunities in and around SLO area. It really depends on what you’re looking for. In my opinion there aren’t really any multifamily properties that are a good buy right now in the city of San Luis Obispo since everything on the market is overpriced and with the recent rent cap bill it makes it a little more difficult to manage multis. That would leave you with a large single family home option 4+ bedroom usually is what I look for and depending on the location you can use some basic rent numbers. There is a solid student base but I’ve found you can also rent to business professionals at the same rates and they are much easier to live with, unless you don’t mind coming home to the occasional college party with kegs getting tossed off your roof and into the pool haha I will shoot you a message so I can hear more about your plan and offer any advice to your specific goals if I can, I’m always up to grab food or some drinks to talk real estate too.

Congratulations @Owen Schwaegerle you’re having a killer month!  

1.) $10k seems like a small budget what improvements & renovations were done in the house? 

2.) Who did the work?

3.) Where there any unforeseen issues that arose during the renovations or transactions? Or things you learned from?