All Forum Posts by: Duncan Hayes

Also buyers stated I could come to the property during rehab so that I can learn.

Outta everything, that’s my favorite part of this, because I’ll learn and maybe on the next one I won’t be so hesitant once I’m aware of what’s the norm here as far as damages to the property and the norm to repair it.

Hey all thanks for the advice. I appreciate it all!

Here’s an update:

I decided not to purchase for myself but assigned contract to other investors and will make a quick $5k assignment fee. Sellers original repair est was way too low. Even with her repairing the roof, the repairs cost is still high due to things like replacing the entire wiring system (it’s currently knob and tube). The home is 100 years old in Detroit so that should give an idea of scope of work. Didn’t find this out until I went and walked the property on Monday.

This isn't a deal I felt I'd be able to take on with my level of experience and the rehab needed. Glad to still be able to help the seller, help the buyers, and of course help my bank account. Buyers put up a $2,500 EMD, Closing next week!

@Marduk Mooshoolzadeh

It is 1000% doable with $10,000. You are in a better starting position than most, including myself.

My first deal cost me $0 and I made netted $7,000. Left money on the table I’m sure, but if I can get my first deal done with $0, you can definitely do some damage with $10,000! There’s a few options you have!

• invest in mentorship

• pay for marketing to get an off market, distressed property under contract

• low/no money down for a sub to property

• depending on your credit and the prices in the market you'll be in you could get FHA loan and have a 3.5% down payment

• use money as down payment for HML on a fix n flip

I’d say you need to assess your short term & long term goals with real estate investing and map out what’s necessary to get there. Then make the decision on how to get rid of that cash into your first investment venture. Good luck and feel free to reach out if I can help you in any way at all.

I’m am currently looking to acquire my first duplex property. Here’s the scenario I’m looking at and wondering what the input of more experienced investors is on it:

- 2 units built in 1913.

- $110,000 - purchase price; seller has agreed to carry the note until rehab and resale/refi has happened.

- $45,000 repair estimate for roof, front porch, back decks, plumbing and electrical, kitchen, and bathrooms.

- $65,000 Private money to finance repairs, cover closing, and have “uh-oh” money in the bank to fall back on.

- Comps are in the $260,000 - $480,000 range.

- The Area is right near downtown Detroit, which has MGM Casino, a bunch of businesses that are attracting young professionals whom would rather rent than own, the river walk, Belle Isle (anyone from Detroit understands Belle Isle’s significance), and the bridge to Canada.

- The neighborhood doesn’t look too bad, but it is Detroit.

My ultimate goal is to refi, pay off the seller and my private money, & be able to keep the asset. But, If that’s not possible I’m willing to sell to make some quick cash to put into my next deal. Is it possible to refi when your credit isn’t cream of the crop? Because this is a MF asset, should the bank care more about the assets performance? Would you do this deal? Is there any info I left out that you’d need to know prior to making a final decision?

I am no expert and I'll be the first to admit it. This will be my first buy & hold, first BRRRR, first transaction that I'm completely in charge of. I have assigned contracts and to be honest I don't really like the whole wholesaling side of it. I want to generate long term Cashflow.

I’m looking for any and all advice from experienced investors so that I can one day be on your levels.

Thanks in advance,

Duncan Hayes

@Dan Handford great advice. My question is this;

With SEC laws being strict on a person “raising money” how would you advise a newbie to get involved in a deal that would require substantial capital? Should a newbie search for commercial loans or is there a way to go straight to raising private funds?

@Kenneth Reimer well my inexperienced opinion would agree with you. I think thinking of the downside should come priority to thinking about upside. That way anything better than what you planned for as downside would be a win.

Thank you both. I appreciate your time to comment. Not that I have any doubt in my abilities but this early in the game, I’m thinking about pursuing class C in B class areas for value add. Not just via rental increase of course.

When searching for multifamily properties which have the greatest ROI potential between Class B & C properties? Why do you feel the way you do?

Thanks in advance.

@Cameron Strong depends on ur buyers. My first deal had tenants and here in CA if they’ve occupied the property for over a year then they get 60 day notice instead of 30. My buyers did not want to close until they were gone. Luckily the tenants left when they were supposed to. It was a long 60 days though lol

@James Pennington there’s two books I’ll recommend. Both by Todd Fleming;

“If You Cant Wholesale After This....” & “If You Cant Cashflow After This...”