All Forum Posts by: Dustin Lavender

Centennial bank. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $35,000
Cash invested: $5,000

4 bedroom 2 bath house. Sat empty for a long time assessing and remodeling currently.

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

Proximity to previously owned properties.0

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

I have seen this house set empty for close to 10 years. I have mailed the tax record address multiple times with no response so I looked up the names on Facebook, friended the guy. Spent a year becoming Facebook pls and then bought the house from him!

How did you finance this deal?

Equity from other properties.

How did you add value to the deal?

Renovating it currently.

What was the outcome?

Bought it with no money down, because that’s how I like to roll.

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

Absolutely NOT!

@Jordan Berry thanks! I appreciate that. We’ve been in it around 6 years now. I’m CERTAIN Cali side of things is much different. We have no water restrictions over here, so I’m running old dinoasaur h2o guzzlers. About to upgrade though. 

Investment Info:

Other commercial investment investment in Searcy.

Purchase price: $200,000

Commercial coin laundromat. This was the purchase at the end of the 4th year into a commercial NNN lease.

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

I saw the laundromat potential from the small laundromat in my 10 unit multi family property.

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

Driving for dollars! The place had been shut down for several years so we didn't have the number to show the bank to make a commercial loan work so I signed a 5 year NNN lease on the property to get my own numbers to bring to the bank.

How did you finance this deal?

20 year amm, zero down.

How did you add value to the deal?

I added value to the deal by creating a business where none existed.

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

Nope. All solo.

Investment Info:

Single-family residence buy & hold investment in Searcy.

Purchase price: $9,000
Cash invested: $12,000

400sqft house. Fully gutted. New electrical, roof, plumbing, HVAC installed.

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

In the neighborhood

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

I found this deal by driving for dollars, searching tax records, and contacting the owner through Facebook.

How did you finance this deal?

Cash

How did you add value to the deal?

Full gut renovations

What was the outcome?

In progress

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

Nope

@Frankie Paterno, @Scott Mac

This guy just gave you the best advise you can get! I don’t have a mentor I have buddies who I lean on and who lean on me when they have questions, need advise, inspiration, and direction. Just make some friend and learn from them. 

@Taylor Gaspard

10 units with attached Carwash laundromat. Sorry I somehow missed your reply to this.

@Monique O.

Honestly! Storage units. Take, 125,000$ build a 150-175 unit storage facility on 1 acre of land, appraised will be between 400 and 500k, equity of 85% on low end would be 340,000, do this across your state/region roughly 20 times would be 5mil in the bank. My bank told me last week they will loan on storage units with only projected numbers as soon as the last bolt is tightened, and that that appraisal would be in the ballpark of between 400-500, so you don’t even have to let it season before equatizing it, so could be done in less than 5 years if you moved quick enough.

If anyone wants to give me $125,000 to get started, I’ll split the 5 mil cash with you in 5 years.

@Leah Stuever

Look into the coin laundry association website. They have great valuation metrics.

I own two laundromats and being a cash business, do not trust the current owners financial claims in my opinion. It is an extremely water dependent business, so an easy way to determine turns per day on an older mat, is to look at the water bill. The water company will actually print you the water usage amount and you can calculate usage from there, often times without the owners permission as it is just numbers.

Example:

10 washers at $2.5 that use 21 gallons per load

5 washers at $4.00 that use 18 gallons per load

So in this example:

67% of washers use 21 gallons

33% of washers use 18 gallons

Water department says avg 10,000 gallons per month

So:

67% = 6,700 gallons/21=319 loads x $2.5 = $798

33% = 3,300 gallons/18=183 loads x $4 = $733

According to coin laundry association dryer revenue is at least 50% of washers. (Mine is actually floating at a solid 75% of washer revenue) so dryers at 75% would be = 1,148

Making estimated monthly income in this scenario= $2,675

Obviously this method has flaws, such as if 50% of customers use the $4 washers, it may result in a higher or lower income, but it is a pretty easy method to quickly calculate an estimate of income, also the owner can’t claim more income than he has water usage, for example if all customers in this scenario used the $4 washers and he had a 100% dryer to washer income rate his nearly max income would be, $4,444 per month, so if he claims 6k you can check that water bill and be like “uh-uh”!

@Kyle Tipton yes to both of those questions. He lives local and is buying distressed/foreclosed and renting to military families, but a lot of military stays on base.

I am in the Searcy market. I like to be able to drive by my rentals just to peek even though I use a property management company.

If you are interested in multi family PM I have a 10 unit multi use commercial property that’s up for sale.