All Forum Posts by: Emily Fackler

@Santiago Marquez Of course the rehab came in higher!! LOL :) It was my first project and I had no clue what I was doing. However, at first I planned to BRRRR it and then we opted to flip it so we used higher end stuff for the flip than we would the rental. I overestimated and used a very conservative sale price of 80,000 when I started to see if that would work for us and since I was so conservative and got the deal at such a low price, I had room for error. They are right when they say you make money when you buy the deal! If the numbers aren't right from the beginning, you lose.

@Alecia Loveless Yes!! Get rid of that guy and move on. I had to go through a lot of Frogs on this project before I found a contractor "prince." Good luck! :) Thanks for the comments. 

Investment Info:

Single-family residence fix & flip investment in Eddyville.

Purchase price: $25,000
Cash invested: $65,000
Sale price: $119,000

This house was a 2 bedroom, 2 bath single family home that was previously rented out. It was in very bad shape but the huge porch and underutilized space caught my eye!

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

I needed a deal! I was a W2 employee and I had the real estate itch. I wanted to get started. I kept looking on the MLS for months and months analyzing deals. Finally, when I saw this one hit, I knew it was a great opportunity.

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

I saw this deal on the MLS. However, when I went to contact my agent and the listing agent, they said it was sold. However, I didn't stop there. The listing agent said it was bought in cash with a 7 day closing. I had zero chance!

I followed up with her a week later via text and asked her if the closing went through. She said yes and I congratulated her on the sale. I told her that if the buyer wanted to get rid of it I would buy it. A day later she texted me back and it was mine!

How did you finance this deal?

Local bank financing for the home loan. We put down 20% on the house. For the rehab we used cash (worst idea ever). We learned what not do do moving forward but again, it was a great learning experience for us.

How did you add value to the deal?

We added a master suite and updated the entire house.

What was the outcome?

We learned a lot, found great partners (contractors and our lender), and profited!

Lessons learned? Challenges?

Lessons Learned: 1. You are the only one that cares about your deal as much as you do. You can't sit back and hope for the best. 2. Don't assume people are doing their job. 3. Don't use all of your cash to fund a rehab leaving you strapped for cash. 4. The house isnt sold until the papers are signed and the keys are handed over. 5. Don't try to do the work yourself if you aren't skilled in that trade. Pay someone else to help!
Follow up on something that you want! Never stop follow up!

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

Yes, Alex Sutton at Farmers Bank and Trust in Eddyville Kentucky.

@Andrew Kougl They wanted to get rid of it. It was great timing for them. They had tried to sell it to several people as well. Also, I didn't request them to do any work on the property. It needed two roofs and he let me know that upfront. To answer simply though, I made it very easy for them. I went to their home, brought a sales contract with me and talked to them for a while about their life, family and their next adventures. I think having a relationship with the buyer has worked with me on several occasions. Listening is the key!

@Dmitriy Fomichenko #solo401k #apartments #duplex #kentucky

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $180,000

I purchased 3 Duplex (6 doors) apartment using my Solo 401k Trust in full after leaving my corporate job of 11 years. I contributed a lot to my 401k over the years and it paid off! :)

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

I have been looking for apartments for a while. I like the idea of a BRRRR apartment complex. It allows for cash flow and appreciation. It also helps my goal of financial freedom at a young age.

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

My lender sent me this deal as a lead. I negotiated it by getting to know the owner and finding out what his needs were. He wanted 225,000 for the apartments (per appraisal), but I was able to buy at 180,000.

How did you finance this deal?

Through my Solo 401k Trust.

How did you add value to the deal?

The property needed two new roofs and some attention on the landscape. It also needed a few updates here and there (toilets replaced, lining under house to prevent mold). It was also renting for $375 which is about $200 under the market value in this area. The owner had not raised the rent in years.

Lessons learned? Challenges?

I learned to really listen to your sellers. There is a lot to learn. I took advice from the book, "How to negotiate real estate" from the BiggerPockets library and it really helped. Listen, Listen, Listen to the buyers' needs and reasons for selling.

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

I worked with Sense Financial (Dmitriy Fomichenko on BP) and Solera Bank

Hi.  I have had luck with the small town banks; local banks. Farmers Bank and Trust in Eddyville Kentucky is my go to!

I live in Eddyville Kentucky. If anyone on this thread wants to connect I would love to. I am happy to help out and was raised here so I have a lot of contacts in Eddyville and Kuttawa. 

This (easy to read) book fills the void of the "what to expect" as a new real estate agent as well as helping real estate agents become top agents in their market. I am a real estate investor and finally decided to get started on studying to be an agent. I am so glad that I read this book. It helped me remove any fears that I had about getting started and lit a fire underneath me to be the best and fully commit! It also helped confirm that I want to be a real estate agent for the right reasons.

You must BUY the book versus borrowing or renting from the library. You will want to go back several times and refer to the strategies that David outlines. You may even want to keep in your car or purse as a reminder of how to stand out in the market at all times!

And if you are not an agent, send to your agent that is in your "Core Four." It won't only help them out, it will help your business grow as well. If you don't have a trusty investor friendly agent, get one. :)

I cannot wait for part 2! Thank you @DavidGreene 

#Newagent #agent #book #Sold #DavidGreene

Hi! When I wrote that today I thought, no one on bigger pockets is going to know where this city is. :) Glad you are familiar! I am planning on a 150k ARV to be conservative because I am splitting the lot. However some of the houses per square foot sold in that area were sold at $100 per square foot. That would put our ARV at $200,000. I like to give myself some wiggle room though. :)

Investment Info:

Single-family residence buy & hold investment in Kuttawa.

Purchase price: $37,000
Cash invested: $7,400

This home sits on a double lot near a marina and lake and just needs some tender love and care!

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

I have always wanted to own a home in Old Kuttawa Kentucky on Lake Barkley. The little town is so quaint and fun! It is a little neighborhood of boat and lake loving families. Even though our town is so small, we have tons of people from other and bigger cities buying property as second (lake) homes in our area.

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

Driving for dollars! I sent a note in the mail to the owner of the home and asked to buy the property as is. He told me what he thought the property was worth and I agreed with him. We really didn't negotiate at all.

How did you finance this deal?

We financed the deal through a commercial investment loan through our local bank.

How did you add value to the deal?

1,000 of the square footage was not being used and was not recorded as livable square footage on the home. It was listed as a 2 bedroom, 1 bathroom. I knew we could add another bedroom and bathroom as well as 1,000 square footage once it was reappraised. It was also on a street where the houses around this home had split their lots and had houses on the back of the lot. I knew i could subdivide the lots and have multiple exit strategies on the property.

What was the outcome?

We just began rehabbing the house. I will update this post as we go along! However, our plan is to BRRRR the house to finance the back lot so that we can build a small house on the back subdivided lot and rent that house out as well.

Lessons learned? Challenges?

Again, building relationships with the sellers is an absolute must. I love getting to know different people and it is fun hearing their stories. If I didn't build a relationship with the owner, he could have sold the property to multiple other people that offered.

Also, be diligent in the contract and timeframes when the house you are buying is filled to the brim with belongings.

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

Same lender! Farmers Bank of Eddyville Kentucky. Our family highly recommends!