All Forum Posts by: Bryan Hoyem

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $80,000
Cash invested: $66,000
Sale price: $205,000

This was a text book flip project. We found it driving for dollars and sending direct mail. The owner was looking at foreclosure and the house was in terrible shape. I was able to pay her enough to get everything paid and get her started into a rental house that she could afford. For the house, in addition to all the work which included replacing the AC system and roof, I converted an underutilized addition into an additional bedroom and a dining room.

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

I had been managing flips for others and love the transformation that takes place. This was one that I was able to do for myself.

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

I found the house driving for dollars and send some direct mail. The owner called me and we agreed on a price after I visited the property and discussed both of our needs.

How did you finance this deal?

This was mainly financed through a private money loan.

How did you add value to the deal?

The repairs to the house were a huge value add on their own. The air conditioning system had not worked for years, the roof was shot and the yard was an absolute jungle. There was no flooring when I bought the house and the residents had just not had the ability to keep up with repairs for a long time. Beyond that though, there was an addition that I was able to divide into a new bedroom and a formal dining room as well as moving the water heater to the attic, really adding usable living space.

What was the outcome?

The outcome was that I was able to sell the house for considerably more than I had initially calculated.

Lessons learned? Challenges?

The initial challenge was the previous resident. They had requested a temporary lease back when I bought the property which I agreed to. However when it came to the end of the lease period they were still slow in moving out. Thankfully they did move out on their own without any additional steps required and we were able to maintain a friendly relationship through the transition.

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

This was before I had attained my real estate license, otherwise I would have been able to take on an even more complete handling of the entire process.

Investment Info:

Single-family residence wholesale investment in Spring.

Purchase price: $90,500
Cash invested: $2,664
Sale price: $100,622

I found this property after taking a wrong turn in a neighborhood and seeing a For Sale by Owner sign. I called and learned that the owner had the property as a rental for a number of years and was tired of being a landlord. After negotiating the price and signing a contract, I reached out to my local network and found a fellow investor with an end buyer who was interested in the property. I assigned the contract and we split the assignment fee.

Investment Info:

Single-family residence wholesale investment in Spring.

Purchase price: $90,500
Cash invested: $2,664
Sale price: $96,622

I found this property after taking a wrong turn in a neighborhood and seeing a For Sale by Owner sign. The owner had the property as a rental for a number of years and was tired of being a landlord. After negotiating the price and signing a contract, I reached out to my local real estate investors association and found an end buyer who was interested in the property and assigned the contract to him.

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

The property was actually not far from another house I was rehabbing at the time so I was very familiar with the area market. The price the seller gave on the initial phone call was interesting right away so I knew it could be a deal.

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

I found this deal by calling a for sale by owner sign in the yard. I negotiated with the seller initially by simply asking if she could accept a lower price which she did. After I had an inspection done and found there were foundation issues, the seller agreed to negotiate down a bit more to compensate the costs of foundation repairs. Negotiating with the buyer then was done with a fellow member of a local real estate investor association.

What was the outcome?

The outcome was an assignment fee paid to me at closing.

Lessons learned? Challenges?

In this deal, I initially was looking at the property as a flip or to buy and hold. When the inspection revealed foundation issues, I decided to pass it on as a wholesale. The seller felt as though I misrepresented my intentions so in future deals I will try to communicate even more clearly with the seller at all steps of the process. It did not seem to have future impact in this case but if the seller had owned other properties, I would have hated to have burned that bridge.

Investment Info:

Single-family residence wholesale investment.

Purchase price: $185,000
Cash invested: $10
Sale price: $186,500

The owner of a SFR who had moved out of the country wanted to sell his house that has received extensive flooding during hurricane Harvey. The house had sat for a year without flood mitigation of any sort. I was able to negotiate a price that made sense even after repairs but was not interested to undertake the project myself. I assigned my contract to another investor looking to acquire the property as a rental for a small assignment fee.

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

The seller found me through my listing on Google.