All Forum Posts by: Curtis Bellenot

Investment Info:

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

Purchase price: $85,000
Cash invested: $135,000

Single Family Victorian that was converted into a duplex sometime in the 1930's, we fully gutted this property and kept it as a duplex. Completely rebuilt it from the studs out, installed new wiring, new plumbing, HVAC, drywall, paint, trim and restored the original windows and hardwood floors. Added two bathrooms, installed new kitchens and decks and lower railings.

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

This value add BRRRR was right up my alley, we had done 3 other houses in this neighborhood and I knew the value of this property was going up.

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

This was a wholesale deal from a great wholesaler named Alex who called me, I met him at the property 30 minutes later and bought it for the $85,000 he was asking, I would have probably bought it for $100,000.

How did you finance this deal?

Hard money loan through Mofin Lending

How did you add value to the deal?

Completely rebuilt this entire house.

What was the outcome?

It became a GREAT cashflow property on top of the $77,000 I pulled out of the cash out refinance.

Lessons learned? Challenges?

I fired my contractor about 75% of the way through this project and had to hire a new contractor to finish it. I ended up just hiring a bunch of guys to finish it and now I have a crew that knocks out my projects.

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

Mofin lending was GREAT on this project!

Investment Info:

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

Purchase price: $85,000
Cash invested: $135,000

Single Family Victorian that was converted into a duplex sometime in the 1930's, we fully gutted this property and kept it as a duplex. Completely rebuilt it from the studs out, installed new wiring, new plumbing, HVAC, drywall, paint, trim and restored the original windows and hardwood floors. Added two bathrooms, installed new kitchens and decks and lower railings.

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

This value add BRRRR was right up my alley, we had done 3 other houses in this neighborhood and I knew the value of this property was going up.

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

This was a wholesale deal from a great wholesaler named Alex who called me, I met him at the property 30 minutes later and bought it for the $85,000 he was asking, I would have probably bought it for $100,000.

How did you finance this deal?

Hard money loan through Mofin Lending

How did you add value to the deal?

Completely rebuilt this entire house.

What was the outcome?

It became a GREAT cashflow property on top of the $77,000 I pulled out of the cash out refinance.

Lessons learned? Challenges?

I fired my contractor about 75% of the way through this project and had to hire a new contractor to finish it. I ended up just hiring a bunch of guys to finish it and now I have a crew that knocks out my projects.

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

Mofin lending was GREAT on this project!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $85,000
Cash invested: $45,000
Sale price: $238,000

Awesome little flip project, 1,200 sqft 3/1 we rehabbed and original ARV was $185k but with the crazy market we marketed it at $225k and sold for $238k.

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

Great little cosmetic flip in an up and coming area

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

I bought this property from a local wholesaler

How did you finance this deal?

I used hard money for purchase and rehab with the down payment from a private money lender.

How did you add value to the deal?

We did a new roof, new paint, opened up a wall, redid the kitchen and bathroom, added SOD and a fence, new windows and some minor electrical.

What was the outcome?

This was an excellent little flip, we bought it with tenants in there, then flipped the property when the lease was up. With rising house prices this went from a good deal to and EXCELLENT deal!

Lessons learned? Challenges?

Windows, tile and appliances all took longer due to COVID delays.

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

Mofin lending did the hardmoney loan and Chelsea Phillips with Six Bricks Realty sold it. Both were EXCELLENT!

Yup, everything is expensive, just like everywhere else. What returns are you looking for? Analyze MLS deals to where they make sense to you, then make those offers. If everything is moving to fast and it seems expensive, are you looking at it from a 2015 mentality? Do you need to move your paramenters? Does it cash flow correctly? These are questions you need to ask yourself, I recently bought a property for 125k that is in WAY worse condition than another property I bought for 70K in 2016 BECAUSE THE MARKET IS MOVING! While I think it is high, I am still safe with a 70% ARV all in rate, and my rental pro forma is very conservative. Emotionally I'm like "WHAT?! Almost double for a worse property?!?!!??!?" But logically I'm analyzing deals the same way as when I started.

Karen, 

I've seen your property on Barnard and its looking great! Don't worry too much about priming the back of the boards, yes, it would help, will it make or break the house? No. I'd recommend talking to your Sherwin Williams Rep or other paint house to get the best product for your budget. Tell them exactly what your needs are and they will help you out. My Sherwin Williams Rep Christy routinely lets me get Buy-One-Get-One free samples of up to 20+ gallons of paint. Or you can specify it with your contractor and go through their rep. I buy less than 200 gallons of paint a year but get 40-60% off sticker price. My contractor must get 60+% off. Also, just realize you'll have to repaint the properties every 10-20 years depending on the quality of paint you use. 

I use RealProtect for all my investment properties, that's all they specialize in. 

Kenneth,

Are you talking about title search companies or a title company for closings? In Georgia buying properties is handled by a lawyer as opposed to title companies or escrow agents. I personally recommend Elizabeth Thompson or Joel Gerber

rtzlaw.com/ or http://brannenlaw.com/joel-gerber-savannah-lawyer/

I would recommend Liz Thompson or Joel Gerber, they are excellent! 

Joel Gerber is great, so is Elizabeth Thompson. I don't have their contacts on me right now but I've used both and a quick google search will bring their names up! 

Robert,

If you were 60 days late on your rent, would you get an eviction letter? If you own your home would the bank be contacting you about late payment on your mortgage? The answer is yes. Paying rent on time is not an unreasonable standard. I would file at the courthouse and get the ball rolling, I would also inform them that the rent is going up to market rates. Here's a great reference for your legal rights and the tenants. 

When they leave I would do a quick but thorough updating of the place (Paint/carpet/appliances) and a super deep clean, then rent it out for the 2000 a month. I would also make sure that you CAN rent it for that much more. 

https://www.dca.ga.gov/housing/housingdevelopment/...