All Forum Posts by: Bryan Johnson

@Drew Sygit Thanks for your comment. I agree with you that the language of the contract is critically important. As a practicing attorney for nearly 20 years, I review, analyze, draft, revise, negotiate, and enforce contracts on a daily basis. If you'd like me to take a look at your 14 page management contract, I'd be happy to - I'm confident I could make some suggestions to improve it.

Investment Info:

Single-family residence fix & flip investment in Byron.

Purchase price: $33,000
Cash invested: $42,000
Sale price: $127,500

My first fix and flip. Interesting property because there were major structural issues with the basement foundation. I obtained quotes for the work prior to making an offer and adjusted my offer in light of those bids. The rehab went very smoothly; I added a bedroom to make it a 3/2 and increased the property value greatly in the process. I sold for approximately a $40,000 profit. Really pleased with the result of my first flip.

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

Like many places, the market has been hot here for several months. Plus, it's not an area with a lot of renters. Thus, I had a pretty easy decision to flip.

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

I found the deal on MLS. I negotiated the foreclosure with the lender through my agent. I did considerable diligence pre-offer, obtained bids to account for the basement foundation issues, included those bids with my purchase offer, and secured the property at a steep discount as a result of that diligence.

How did you finance this deal?

I used a $20,000 private money loan, and used cash from savings to finance the remainder.

How did you add value to the deal?

Shored up the concrete foundation; cosmetic upgrades throughout entire main floor; new appliances; and added a third bedroom to appeal to a wider audience.

What was the outcome?

After all was said and done, I netted approximately $40,000.

Lessons learned? Challenges?

The key lesson I learned was that adding a bedroom does not cost a lot, but can provide great returns. I'll be looking at properties a little differently in the future to see when and where I can add a bedroom to quickly and efficiently increase value.

Investment Info:

Single-family residence fix & flip investment in Byron.

Purchase price: $33,000
Cash invested: $42,000
Sale price: $127,500

My first fix and flip. Interesting property because there were major structural issues with the basement foundation. I obtained quotes for the work prior to making an offer and adjusted my offer in light of those bids. The bank (foreclosure property) accepted my bid after some negotiation in large part because of the diligence I had done to understand the work that needed to be performed on the basement. The rehab went very smoothly; I added a bedroom to make it a 3/2 and increased the property value greatly in the process. I sold for approximately a $40,000 profit. Really pleased with the result of my first flip.

@Kevin M Finley and @Colin G Murphy ---- Would either of you be willing to share a template of your loan proposal document?

@Doug Karkow - Thanks! Would greatly appreciate an intro if you’d be so kind!

I posted this in the local Iowa forum. Thought I'd try in this sub-forum as well. Can anyone recommend a property management company in or near Cedar Rapids to manage my rental properties? Thanks in advance!

Good morning all. Can anyone recommend a property management company in or near Cedar Rapids to manage my rental properties there? Thanks in advance.

Hi All,

I'm an attorney and real estate investor living in Chicago. I have a large number of friends and family in the Kansas City area, visit multiple times per year, and am interested in putting together a team to invest in SFH BRRRR deals and small multi-family BRRRR deals (2-12 units) in KC. Looking to connect with like-minded folks, including an agent with experience working with investors. Please connect with me if you fit the bill. Thanks!

Bryan

@Steve Helms

If the property is owned in a corporation, LLC, or partnership, you cannot represent yourself as landlord. You'll need to hire an attorney. Even if you own the property in your own name, I would still hire counsel.

I'm an attorney in Chicago and I agree almost entirely with the statements above. But I will try to be even more precise - whether an attorney is required for closing is a locality issue...not a state issue. Illinois is an example. In the Chicagoland area, attorneys are required to close a real estate transaction. In other parts of the state, however, title companies close without the use of an attorney. You can still utilize an attorney's services in those areas and, in fact, I recommend you do so. The attorney should be local to the location of the property at issue.