All Forum Posts by: Chris Tarpey

 Definitely, find a deal. Evaluate the numbers conservatively - find a partner if need be and take the leap! You learn so much just by doing a deal and moving forward!

Many mistakes! We didn't choose accurate comps, we "questimated" rehab and other important costs. We had an idea on rent/sales price but should have consulted with property manager.

You learn as you go!

We usually offer 10-12% by the deal (30-90 days) or for a specific duration (6 months, 12/18 months).

We will usually draft a promissory note with out position and will even go as far as to make it a secured position so they can have a lien on the property. This usually gives them the warm and fuzzy!

We have had them hold funds in an escrow account with the attorney before, however once you have a relationship you can usually just get it wired to you, or wired to attorney and collect the lump sum for your project.

HMMM... We use Lima One Capital and are able to get 20-30 year terms on the ARV even after owning the home for less than 5 years.

We typically stick with the 30 year rental loans, but I know others choose 20 years! I believer both provide good options depending on what your looking to do with your portfolio! I think after we grow and acquire more, getting to a point we are comfortable with, we may switch to a 20 year option.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $67,500
Cash invested: $15,000

This deal was brought to us by my neighbor who spoke to the owner of this home. This was his grandmothers home that he inherited, and it needed A LOT of work. We were able to walk it and make an offer same day. 3 weeks later, using private money we closed!

PP: $67,500
Reno: $50,000
ARV: $150,000

Renovations currently underway! Ill try to post more pictures as we go through it! Framing out a 3rd bedroom today and updating electrical and plumbing. Next up HVAC replacement, sheetrock and paint!

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

Local to our area, we have multiple rentals in the area.

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

Neighbor let us know the gentleman was interested in selling. We made an offer around $65k, he wanted $72k and we met at $67,500.

How did you finance this deal?

Hard Money - Lima One Capital

How did you add value to the deal?

We are currently doing a gut renovation. New Windows, flooring, HVAC, paint, framing in a master bedroom and a complete kitchen and bath remodel.

What was the outcome?

Still undergoing renovations!

Lessons learned? Challenges?

I'm sure there will be

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

This was an off market deal - but our lender and attorney as well as local neighbors were key in making this deal happen!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $67,500
Cash invested: $15,000

This deal was brought to us by my neighbor who spoke to the owner of this home. This was his grandmothers home that he inherited, and it needed A LOT of work. We were able to walk it and make an offer same day. 3 weeks later, using private money we closed!

PP: $67,500
Reno: $50,000
ARV: $150,000

Renovations currently underway! Ill try to post more pictures as we go through it! Framing out a 3rd bedroom today and updating electrical and plumbing. Next up HVAC replacement, sheetrock and paint!

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

Local to our area, we have multiple rentals in the area.

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

Neighbor let us know the gentleman was interested in selling. We made an offer around $65k, he wanted $72k and we met at $67,500.

How did you finance this deal?

Hard Money - Lima One Capital

How did you add value to the deal?

We are currently doing a gut renovation. New Windows, flooring, HVAC, paint, framing in a master bedroom and a complete kitchen and bath remodel.

What was the outcome?

Still undergoing renovations!

Lessons learned? Challenges?

I'm sure there will be

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

This was an off market deal - but our lender and attorney as well as local neighbors were key in making this deal happen!

Hey!

We've only just got into Airbnb recently but have seen huge returns. We were actually able to use the arbitrage method where we signed a long term lease on some apartment units of a friend/investor. He got the stable leases he needs to refinance and we were able to acquire 3 Airbnb apartments for the cost of furnishing ($3k/unit). We rent these units for $600/month each from him plus utilities and they took in over $4k last month!

Very low barrier to entry..I'm sure you've seen the social media side of arbitrage and making money on Airbnb by renting and then furnishing very high end and nice apartments/homes... but find the niche that works for you!

That depends on the deal, location and who your buying it from!

It could be easy to sell that the most discounted deal comes directly from the seller - no agents, no wholesaler or middle man. But this is only true if the deal is in fact very good and the seller is motivated to give a steep discount.

Wholesaler may be your next best being that they communicate and find motivated sellers (for a fee) but maybe the come across a deeper discounted deal than what you have been able to find yourself!

Finally - you can get great deals from agents, sometimes sellers go to them and trust them more than Jo Schmo the wholesaler.

BLUF: Get out there and network with everyone you can, you never know where your best deal will come from!

I would definitely stay conservative!

Find something close in sqftage and house specs and add/subtract for that. It is not a perfect science, but I always like to plan around a 3/1.5 comp even when my property is a 3/2, giving myself a little breathing room.

This can still be confusing until you get more confidence in your market... so, I would definitely reach out to you local agents who can help you.

We use Lima One! We have a great referral over there Id be happy to put you in touch with!