All Forum Posts by: Casey Conner

Hello BP world,

I am developing a business by selling shares to friends. I have 3 people total. 30,000 Capital raised- and a credit line of 45,000 from a lender.

We are looking for our first deal. (All a group of guys fresh out of college)

The issue; houses in our area sale for 2,1s for 60-80k. This doesn’t leave much room for error. How can I, the management, raise the capital with equity without bringing an individual’s opinion? As in, we need 20,000-30,000 more, I just don’t know how to manage so many share holders. Or is this a pipe dream?

Investment Info:

Single-family residence other investment in Knoxville.

Purchase price: $130,000
Cash invested: $10,000

Bought a flip to live in, once I bought it, I knew; if someone is willing to spend this much on a home, I should be in the business. Most expensive education I have, and I went to college!

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

Needed a place to live, that wasn't paying someone else's rent.

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

With an agent, where I had to beat 3 other offers on the house.

How did you finance this deal?

Conventional

How did you add value to the deal?

Furnished and polished the floors where the flippers didn't. (I didn't add much value!)

What was the outcome?

Crippling 30-year mortgage.

Lessons learned? Challenges?

Wow! Me: "who would pay this?" Her: "but I want it."
Me: "asking plus 4K and seller pays closing costs." DEAL.

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

Yes! Just ask me and I can put you to a connection with lenders, agents, and college students that need a roof over their head.