All Forum Posts by: Dan Falcon

@Dan Allen Thank you! I was able to get out about $61k. I ended up absorbing about $2k in hard costs. The largest part of the rehab was 8 broken floor joists in one room. It had caused the floor to dip pretty bad. We ended up having to replace and fix the joist and jack the flooring back up. Its a lot scarier then it sounds and I think this probably turned away potential buyers, which worked in my favor. The rehab took about 45 days. We did it over the holidays so there was a solid week where nothing got done. 

As far as GC recommendations, I would first find a great real estate agent that works with investors. @Bryant Tumbelekis is an excellent agent and I have used him on several purchases. Agents that work with a lot of investors have a solid Rolodex. He can steer you in the right direction =) 

@Benjamin Seibert thank you! 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $46,000

Cash invested: $17,619

Contributors:
Bryant Tumbelekis

This was my first BRRRR property in the Fayetteville Market. In hindsight I may have overpaid for the property a little bit and definitely jumped at the opportunity to lock up a renter (rented in 10 days), but I am satisfied with the overall outcome. It was really important for me to prove BRRRR concept in this market & get comfortable with the team I was able to put in place. I was able to finance out the majority of my money. Unfortunately I left about $2000 in inspections/fees etc on the table, but they are negligible in the scope of things. I also paid an interest rate a quarter of a point higher then I should have. My fault for not shopping around more.

Purchase & Rehab - All in at $63,618.61
Appraisal - $115,000.00
Delicious Equity - $51381.39

Monthly #'s
Rent - 900.00
Vacancy 5% - (45.00)
Taxes - (90.00)
Insurance - (61.00)
CapEx - (90.00)
Property Mgt - (90.00)
P&I @ 5.5% - (361.00)
Cashflow - 163.00

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

I am always on the hunt for SFH investments. They really offer me the flexibility and risk tolerance I am looking for.

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

I have an awesome agent who brought this deal to me. He brought me the deal after another investor got cold feet and passed on it.

How did you finance this deal?

I purchased and rehabbed all cash.

How did you add value to the deal?

This home was beaten up. Usually I look for a value add like turning a half bathroom to a full, or adding an additional bedroom, but the comps were strong and I knew by cleaning the home up I could easily find the value.

What was the outcome?

50K+ in equity and a cash flowing asset!

Lessons learned? Challenges?

Sometimes you just have to take the plunge. Fear is natural, but you can overcome fear by removing as much risk as possible.

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

Bryant Tumbelekis at EXP. This guy is a PRO!

@Josh Wagner did you receive my criteria? I emailed you. 

Thanks! 

Build that house from the ground up. Excellent realtor, Bryant Tumbelekis, @bryanttumbelekis is your guy. I have bought a few deals he has brought me. Really knows his stuff. He can steer you into the right areas. 

best of luck! 

Hi,

I have hit my 10th mortgaged SFH. What should I expect from here? I want to keep acquiring SFH's. What should my interest rates look like when pursuing a commercial loan. What Do terms look like?

I am a buy and hold investor. Average deal I am all in at 50-65k. ARV is 90k+ with rents in the 850-900+ range. I have been using the BRRRR method and would like to continue doing this.

thanks! I am going to give it a look today. 

Hello,

Can anyone recommend a good program for analyzing Commercial real estate deals with a syndication component. I am looking to put together a group to purchase an office complex. The spreadsheet(s) I currently use are just not going to cut it. 

Thanks