All Forum Posts by: Chris Hale

This property currently rents for $1270 a month but I'm working on seller finance selling it.  I think this is interesting and exciting and I've not done it before.  Talking with someone who wants to buy it.  My terms are 10% down, 8.5% 30 year note no balloon.  He stated he could pay $8K and we discussed financing the remaining $3K throughout the next 12 months adding $250/month to the rent.  I like this idea.  What do you all think?

Purchase price was $59K, rehab was 30K, appraisal was $120 and refinance was a breeze.  I have a great hard money lender that just moves me right through the process from  purchase through refinance.   What have your experiences been like?  Do you have properties that you've done the Brrr with?

Texas City - that's the name of the city.  Texas City, Tx

Thanks everyone.  No, this is Pasadena, Texas.   A whole different story, :)

Thanks.

Investment Info:

Single-family residence buy & hold investment in Texas City.

Purchase price: $94,000
Cash invested: $13,000

Single Family home that I purchased from the pre-foreclosure list.

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

Decided I wanted to begin generating my own leads and quit paying the wholesaler.

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

I purchased a pre-foreclosure list and sent out direct mail to the areas of interest to me.

How did you finance this deal?

I financed the purchase through a Hard Money loan because it needed to be closed very quickly. Refinanced loan to a thirty year mortgage.

How did you add value to the deal?

I did not add value to the home at this time. I allowed the seller to stay there for a little while to "get it together". This was a mistake.

What was the outcome?

Because I allowed the seller to stay in the home (wrote a 3 month lease) and set a rental rate without due diligence, my rental rate was less than the mortgage. I got stuck in the hard money for several months as I couldn't refinance with rent lower than the mortgage. Once the seller left I was able to do the minimal rehab the house needed and rent at market rate. Was then able to refinance and get a positive cash flow.

Lessons learned? Challenges?

I learned to talk to the bank and know what the balance on the house is before making a deal. This is my first attempt at buying from a list and I trusted the numbers on the list too much. I was not aware of possible arrears that might owed. I made decisions, rent, money to seller (I wanted to help them out - and I did but ...) on incomplete information. I lost money for several months. It was still a good deal, I just should have made different decisions like charge a higher rent.

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

Love my realtor. Its this deal that I found the realtor for my team!!

Investment Info:

Single-family residence buy & hold investment in Pasadena.

Purchase price: $85,000
Cash invested: $28,000

Single Family Home that I bought, rehabbed, refinanced and rented out (brrr).

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

Working toward growing my portfolio.

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

Wholesale deal.

How did you finance this deal?

Purchase and rehab were financed with Hard Money and then note transferred to a thirty year mortgage.

How did you add value to the deal?

Added new roof, HVAC, granite kitchen and bath counters, wood vinyl flooring, interior and exterior paint. Also had to replace the breaker panel.

What was the outcome?

Able to offer a nice, clean, new house with all new appliances to a tenant.

Lessons learned? Challenges?

This was actually the very first single family home I did though I did this one and Robinson nearly at the same time. Learned who I can add to my team and who I can not. Learned ways I wanted my GC to communicate to me and how often.

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

Love my hard money lender.

Investment Info:

Single-family residence buy & hold investment in Texas City.

Purchase price: $59,000
Cash invested: $22,000

Single Family House that I BRRRRd. Purchased at a discount from a wholesaler, rehabbed and rented out.

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

Decided I wanted to try single family investing.

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

Found the deal through a realtor associated with the real estate group of which I am a member. Bought it from a wholesaler, no negotiation.

How did you finance this deal?

I financed the initial purchase and rehab through a hard money lender. Rehab took about 9 weeks, then transferred the loan into a thirty year mortgage.

How did you add value to the deal?

The house required a new roof, HVAC system, granite kitchen and bath counters, wood vinyl flooring, interior and exterior painting. Added all new appliances.

What was the outcome?

A very nice best product to lease at the best price in the neighborhood. An asset that will have no repairs for about 3 years since everything is new.

Lessons learned? Challenges?

I learned to pay closer attention to the GC. I learned who is a good member to keep on my team and who is not as I begin to build my team.

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

Not really.

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $1,200,000
Cash invested: $250,000
Sale price: $1,800,000

31 unit class D asset that I BRRRd. Purchased, Rehabbed, brought the occupancy rate all the way to about 60% during repositioning. Rehabbed exterior and all interior units. Added an office, brought the clientele up and asset to Class C+. Repositioned this property from dangerous with significant deferred maintenance to clean, safe, new everything. Added amenities like Community Area with BBQ pits and pergola and dog park. Sold at a nice profit.

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

I am a Lifestyles Unlimited Preferred member (multi-family). Received their LEAD CERTIFICATION CERTIFICATE entailing of several hours of education. Was offered this opportunity to purchase this asset and took it.

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

Found it through the realtor of the real estate group in which I'm a member. Since I was brand new to real estate, she did the negotiating.

How did you finance this deal?

I financed this deal through a small credit union in the town of the asset. I was an IRO (independent owner).

How did you add value to the deal?

Rehabbed exterior of the four buildings, all 31 unit interiors received new appliances, floors, counters, paint, etc. Added a couple of amenities including a dog park and a community gathering area with two BBQ pits and seating under a pergola for shade.

What was the outcome?

Turned this asset from a class D to a class C+. Created a clean, safe, functional place for people to live. Improved the community in which the asset sits.

Lessons learned? Challenges?

Learned how to lease, collect rent, do the books, work with the contractors and effectively deal with the tenants. It was a crash experiential course (2 years, 3 month) in real estate investing and property management. It was one of the scariest things I've ever done but it was so much fun. I loved it.

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

Absolutely. I loved my real estate agent, lender and GC. If anyone needs one of these in Houston, TX just let me know!