All Forum Posts by: Corey Stibbe

@Drew C Grossman, I am located in the upper Midwest (MN -WI), I am sacrificing slightly on the organic appreciation side, I believe the market average appreciation was around 2% a year. A few things that came up on the inspection were a few floor joists had signs of rot, and one bathroom tub was cracked and needed replacement. In regards to maintenance, when I bought my first property in this market I reached out to several trade businesses and explained my plan in the market and what my expectation would be if I used them, they were very appreciative as no one had ever done that, so as items come up I reach out to these places based on my need and they have been very responsive and eager to grow the relationship.  My overall plan in this market is to buy smart (to get my investment out within 2 years of purchase) and hold, all loans typically are 15-20% down, and I tend to stick to 15 year terms to help with the slower appreciation and still gain equity 

@Nicholas L., the debt was secured on a 15 year commercial loan, annual debt servicing of $5,349.36, annual gross rents at $19,200, after utilities,taxes, and general maintenance, it nets around $8,000 annually. Essentially a small investment, good cash flow and a shortened pay down at 15 yrs 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $135,000
Cash invested: $560

Purchased off market, a gentlemen passed away while building his dream home in 2019, he got the shell up with a roof, I purchased as is along with 40 acres and pole shed, I am updating and finishing currently at 95% complete, looking to list in late January pictures are before and after

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

Low cash investment, high margin

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

A realtor friend of mine put me on to it

How did you finance this deal?

A personal construction loan covered the purchase price and $170k in improvements, equivalents in the area are selling just one of $400k

How did you add value to the deal?

Fix and flip along with land improvements

What was the outcome?

We will see in a few months

Lessons learned? Challenges?

It is my biggest flip, lots of lessons s learned, luckily none that broke the bank

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

Myself

@Andrew Freed see post above forgot to tag 

Investment Info:

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

Purchase price: $60,000
Cash invested: $9,000

Duplex purchase,low cash investment, high cash flow

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

Low investment and a high return

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

On the MLS, list price was $74,999, I came in at $68k counter offer was $70K, I held at $68k and was later accepted, home inspection showed a few moderate issues, renegotiated to $60k and was accepted

How did you finance this deal?

Commercial real estate loan

How did you add value to the deal?

Rent bump and a few small fixes

What was the outcome?

Great producing property

Lessons learned? Challenges?

Continue to use inspections

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

Myself

Investment Info:

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

Purchase price: $100,000
Cash invested: $15,000

Triplex purchased original renters still in, rent bump Jan1 $100 per unit

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

Opportunity to have investment back in 1.5ish years

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

Found on MLS, list price was $119,000, I offered $100k they countered at $105,000, I held at $100k offer was accepted

How did you finance this deal?

Commercial real estate loan

How did you add value to the deal?

Rent bumpwill happen at end of yea

What was the outcome?

High cash flow for low dollar investment

Lessons learned? Challenges?

Great property pickup

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

Myself

Investment Info:

Single-family residence buy & hold investment in Feather Falls.

Purchase price: $132,000
Cash invested: $27,000
Sale price: $160,000

Short term hold, month to month rent, 8 month organic appreciation and then sold

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

First real estate deal, found a good price in a sought after area

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

On the MLS, deal went for over list price

How did you finance this deal?

Commercial real estate loan

How did you add value to the deal?

I didn’t

What was the outcome?

Made good cash flow on 8 months of rent and then sold for a profit

Lessons learned? Challenges?

Should’ve went mutifamily

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

Myself