All Forum Posts by: Daniel Beaston

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $90,000
Cash invested: $45,000

We bought this house after a wholesaler lost his contract on it, the homeowner in the beginning was a little difficult but we were able to come to an agreement. I gave him a take it or leave it option but I feel like he was bluffing when it came to getting other higher offers on the house and I ended up being right. This flip took a little longer than expected since we were fighting through the holidays and the county was closed for 2-4 weeks causing a month delay.

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

The numbers were great! We put a little more into it than we thought we would but at the end of the day we close on the 21st of April and the buyer loves the house. Nothing more satisfying than that!

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

Found through a wholesaler who lost the contract because he couldn't find a buyer, I think it had to do with the seller more so than the offers.

How did you finance this deal?

We used a Hard Money Lender, Alpha Funding Solutions. They were great and easy to work with and the fact that they helped us solve an issue from a crappy title company who kept blaming everyone else but themselves.

How did you add value to the deal?

Initially this house was a 3/1 with 1400sqft, unfinished attic, and unfinished basement. Here is everything we did.
Basement: Completley finished and added carpet
Attic: Completley finished and added carpet
Main living floor: Created an open kitchen and made it bigger, hardwood throughout the entire main level. Completely updated.
Bathroom: Tiled out and updated.
Added AC to the house.

What was the outcome?

Initially we thought we were going to sell the house for 180-190k but that was based off of the automated comps from our realtor. My wife and I did our own comps and came to an average price of 197,000. We figured we would list about 10,000 higher for negotiation and ended up getting an offer for 202,500. We were very happy and the house appraised for 213,000.

Lessons learned? Challenges?

Yes, we learned which contractors were reliable and who was not. With this we are able to use the same pricing for rehab on the next house. Also, knowing that any house built before 1980 will need to have the knob and tube completely replaced. Do not buy during the holidays!!! lol

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

Yes, Charles Hawkins was our realtor and Alpha Funding Solutions was our Hard Money Lender.

Investment Info:

Single-family residence buy & hold investment in California.

Purchase price: $245,000

Bought as a primary residence and kept it as a rental.

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

It was an up and coming area that newly built, we knew once it was finished the value would jump exponentially and be comparable to a similar neighborhood that has more expensive homes. Rental rates were much higher than the mortgage as well.

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

New construction

How did you finance this deal?

VA loan

How did you add value to the deal?

We added some newer flooring to give the town home a better look.

What was the outcome?

We manage the property ourselves and we are able to make an additional 450-500/month

Lessons learned? Challenges?

None for this house

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

Agent back in Maryland

@Anthony Liguori This was in Berlin NJ, got lucky with it because the owner wanted it sold quickly.

@Jasraj Singh Yes, I do this but I also have a lot of reliable people and family to ensure my investments go smoothly. Our flip closes in 10 days, total in 111,000 and selling for 202,500.

@Konstantin Boubev I paid 2700 max to include contamination removal. You just have to find the right company or smaller business who isn’t out to rip you off.

@Isabel Ortiz-Gelder if you’re talking about someone lending you their own personal funds then it’s really up to them. Interest rates could range from 10%-what ever they ask for. It’s hard to gain the trust of someone that you don’t know so unless it’s family that is lending to you then good luck.

A HML on the other hand, I paid 10% down, 3k in closing, 2.5pts at closing and pay 1% interest on what ever I accrue a month. My flips take place in NJ though and I've talked to a lot of HML's before I picked the one I went with. HML's vary, some want 10% down others could want 15-25% down plus points and closing costs.

@Kenesha Lewis

Hold an open house and see what comes your way, not sure how it would affect you when it comes to finding a buyer but worth a shot.

@Andrew Pettit if you are in a training command where you aren’t deployable then yes it is worth it. I’ve seen marines in these units do it and are successful but if you are actively deploying then I don’t think it would be a good idea. I’m active duty as well and I do out of state flips with my dad.

@Andrew Faukner it doesn’t count as additional square footage but a finished basement definitely makes a property more attractive. My current flip has an unfinished basement but we will be finishing it so it so the buyers can enjoy it.

So I just got back in town yesterday, when is the next meet?