All Forum Posts by: Blake Bratcher

My first home purchase I made with intent to eventually turn into my first investment. Proximity to downtown Salt Lake City, reviewed property value and rental rate increases in zip code from last 5 years, turned the equity around quickly to obtain a HELOC and complete refresh work ourselves. Kept in mind to not renovate out of the neighborhood and market it professionally (photography, staging, etc.) when finding tenants. Purchased floor-model appliances, saving every bit of $ we could!

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

We didn't want too much house from the get-go, yet wanted a single family home with no rental restrictions. We purchased knowing it would be a property we paid off in full eventually. The big-ticket items had already been completed (new roof, HVAC) and as first-time homebuyers, this "project" was more digestible than others we had seen. Our agent also advise us on the property value increases in the last 5 years for this zip code - made the decision much easier, being very numbers driven.

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

Working with a licensed Realtor - enjoyed the process so much that I also became a Realtor and my partner became a Mortgage Lender, ha!

How did you finance this deal?

Conventional. Took out a HELOC at lower interest rate (plus a one-year special promo of 1.99% fixed) to refresh the main level and start renovations on basement apartment.

How did you add value to the deal?

Kitchen and primary bathroom refresh. Working on finishing the separate basement apartment currently.

What was the outcome?

Main level has been successfully rented out and is now professionally managed.

Lessons learned? Challenges?

Doing the work ourselves to the main level was... a total beast. We obtained estimates from licensed professionals to compare before starting, allocating HELOC funds to things we had to hire out. A big challenge was sourcing materials for items we were doing ourselves, due to COVID delays and significant price increases. Had to be patient to find the right things, despite working against a HELOC promo deadline.

2 Votes

Quote from @Tomoko Hale:

Quote from @Nate Sanow:

First of all, let me just say good job on going for it!!! You are TRYING and that is good. I remember in the older podcasts and forum posts, Brandon Turner talked a lot about how you should be analyzing 100 deals a week / month, whatever it is depending on your personal goals. That means, doing an analysis of 3 properties per day, and after a month, you can compare 100 of them. That is something you can do on a desktop computer and take lots of notes on.

Secondly, I will say, yes, I do believe a quality, investor friendly realtor would be good for you. I suggest interviewing at least 3, to make sure you find someone who has the right balance of friendly, but experienced in the area you want to invest.

I would also find a similar version of a lender, actually…your realtor should have 1-2 great recommendations. Conversations with lenders who care are very valuable.

One last thing…take a deep breath :) you’ve got time. I am proud of you for learning, growing, and taking you first few steps. It will work out!

Thank you for the kind words!

I have started searching an investor friendly realtor and see only 2 around the area I'm looking. Should I search more realtors next closest city?

Hi @Tomoko Hale! Congratulations on making the first step to build multigenerational wealth. As others have mentioned, I'd highly recommend interviewing a few agents to see who may be the best fit not only in terms of the knowledge they posses, but also their communication style, bandwidth to take on new clients and their connection to other industry professionals (Lenders, Contractors, etc). My brokerage has a property management wing, so I have first-hand experience from both the purchasing pathway and maintaining a property.

And congratulations on getting licensed as well. With the ability to not only represent yourself in transactions but the opportunity to apply a portion of your commission in some cases to your closing costs, you're making excellent (and smart) strides.

If you have not already found someone to help you during this process, I'd love to share a conversation. This is a huge accomplishment! Even getting started.

1 Vote

Salt Lake City, Utah

All Forum Posts by: Blake Bratcher

Blake Bratcher has started 2 posts and replied 12 times.

Post: First-time Home Buyer, First-time Investor, Licensed Realtor

Post: Please advise the steps to move forward with my first investment.