All Forum Posts by: Christian Anderson

I have a land deal coming up North of Gainesville TX. Is this where I would mention it or is there another forum on BP? 

Thanks

Hey Jamaal I'm in Northern Colorado. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $425,000
Cash invested: $550,000

House hacked my personal residence with a 3 bedroom 2 bath ADU in the basement with it's own entrance. Added a 2 car garage with a studio apartment. It is now a 6 bedroom 5 bath home with an attached 4 car garage and studio apartment.

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

This is the second Multigenerational home I have hacked. I needed a place for my kids and grandkids so they wouldn't move out of State.

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

I found it on the MLS and unfortunately there was little negotiation on the deal. It was the right layout for the hack so I paid market value for it. This is the first time I've paid market value for a house in 15 years, but when it checks the boxes you do it.

How did you finance this deal?

Private money lender until I sold the home I was in. I then paid off the private money loan. The home is paid for, no loan or HELOC. I wish I could pull a HELOC but my Better Half says "NO" so I say "yes dear".

How did you add value to the deal?

Adding an ADU with separate entryway, and attaching a 2 car garage with studio apartment.

What was the outcome?

I paid market price in 2020 of $425,000, put $125,000 into it and it is now worth $675,000-$700,000. Property values here are going up .5-1% a month.

Lessons learned? Challenges?

It always costs more, and takes longer than you think it will to do rehabs. Challenges would be the cost of everything because of Covid!!!

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

Yes, Christian Anderson is a GREAT Realtor in Northern Colorado!!

Always follow your systems. So I buy foreclosed properties at the foreclosure sales (well I did until March of 2020). I found a property I wanted to bib on a couple of years ago and went to check it out. Up to this point my system had always been, drive by the property, if someone is living there knock on the door and let them know what is going on and see if I can help them out if I end up getting the home. I then call the local police department and see if there have been any issues with the property address and neighborhood. Well, in this case I had lived in the neighborhood years before and the home looked to be in good shape for a foreclosure. To make a verrrrry long story short I didn't follow my systems. I never went to the door and never called the police. The property got bib up a little higher than I wanted to go but I bought it anyway, another breach of systems protocol. Once I got the current occupant/old owner to answer the door I was greeted by a 60 year old drug addict and her 30 year old meth addict daughter. After I finally got them out, 4 months later, the house tested extremely high for meth contamination. This story goes on and on and on, from the evection attorney to the flooded house after it was rehabbed, but after gutting the place and putting it back together I was able to sell it to a very nice young couple and I only lost about $15,000. Remember, always follow your systems!