All Forum Posts by: Corey Louton

UPDATE: Thursday April 10th, 5 - 8 pm at The Village Taphouse 1778 N Highland Rd, Pittsburgh, PA 15241

Bring a friend or 4, looking forward to meeting some new friends.

Great idea Matt!

I'm putting together a casual monthly (or possibly more frequent) meet-up for real estate investors and professionals—whether you're just starting out or have years of experience. This will be a relaxed, happy hour-style event focused on networking, sharing ideas, and building community.

Everyone is welcome, and the vibe will be informal and friendly. Location is still being finalized and will be somewhere in the South Hills area—based on interest.

If you're interested in joining, meeting new people, reconnecting with old friends, and talking real estate, drop a comment or send me a DM. Feel free to bring a guest!

First meetup: April 10.
Let’s grow together!

Investment Info:

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

Purchase price: $135,000
Cash invested: $24,000

Picked up this triplex with a 1031 exchange, property is at 100% economic occupancy, bringing in $2200 a month in rents. The property needed some TLC to bring it back to life, but we have a good team that is doing just that.

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

Found it on mls first day it was listed. Owner had just passed away and their estate was selling it at bargain pricing. To be competitive we waived inspection contingencies, offered $10k more than asking and negotiated certain repairs to be done following closing to follow local code enforcement.

How did you finance this deal?

We used Civic Financial services, a private lending firm for the debt. The down payment came from a 1031 exchange.

How did you add value to the deal?

Immediately raised rents by $50 each unit and transferred utilities into the tenants names. We utilized the money from negotiated repairs to increase the value of the property as well.

What was the outcome?

Repairs are still being completed as the list was lengthy, but all tenants are happy with the repairs being done and are enjoying the new management.

Lessons learned? Challenges?

Looking for a replacement property during a 1031 exchange the current market was especially challenging. 45 days sounds like plenty but it went fast and we went under contract 3 days before the expiration of the 45 day period.

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

Worked with Dave Foster and his team at Exchange Resource Group. They are a team of true professionals and I won’t hesitate to call on them next time I have a 1031.

@Ryan Copeland

Hi Ryan, your deal looks good on the calculator analysis number wise. What class property/neighborhood is this in? That will have significant impact on tenant quality and duration. I have a couple duplexes in lower income areas and the turnover is more often than I would like, but that was a risk I was willing to take when I invested in that area. 

You will always have reservations and hesitation on your investments, however more so on your first deal. Look objectively at your risk/reward and your long term goals then make your decision then see it through. You just have to pull the trigger to get started.

There are 2 great quotes from athletes that I regularly tell myself when I am on the fence; “you will miss 100% of the shots you don’t take” - Wayne Gretzky and “everyone has a plan until they get punched in the mouth” - Mike Tyson

Apply where necessary.

Hope this helps, best of luck.

Corey

Would love to attend, however I will be traveling out of town for work the second half of the month. Please let me know if you are planning anything in February, thanks!

Thank you @Tim McKelvey. There is about $3-4K worth of work to go into the property which isn’t bad at all. The property values are pretty low in this area, but vacancy numbers are down. My vacant unit on this property just had a deposit put on it today. And I agree 100%, property managers can be game changers. 

@Corey Martin welcome to BP and your new journey in life! I am located in Fredericksburg just right up the road from you. Stick to it, read everything you can get your hands on, and listen to as many podcasts as you can that apply to your investment strategy. Good luck and reach out if you need anything.

Corey

Investment Info:

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

Purchase price: $48,000
Cash invested: $700

Contributors:
Lakesha Kirkendall

Small duplex (2 bed / 1 bath each unit). There is room for forced appreciation with multiple areas for improvement. Current rent is $650 each unit, one unit is rented and the other is in between tenants. Advertised price was $57000, after inspections and negotiations final agreed price was $48000.
Found this off market deal through my property manager; Desirable Management in Hampton, VA.

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

Found it through my property manager; negotiated the price during due diligence after inspections.

How did you finance this deal?

Private money investor

How did you add value to the deal?

in progress

Lessons learned? Challenges?

Ensure private money lender is aware of the procedures and limitations in wiring funds from their bank.

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

Lakesha Kirkendall

@Rob Lee, yes I did. I have a couple options for you depending on what you need done and the extent of the work. Terrance Jackson with Pinnacle Development is an outstanding GC, but primarily focuses on full flips, rebuild, and new builds. Send me a message if you have more questions or if you want his contact info.