All Forum Posts by: John Britt

Investment Info:

Single-family residence wholesale investment in Chattanooga.

Purchase price: $25,000
Cash invested: $1,000
Sale price: $42,000

Single family house that is going through a full rehab right now, in an up and coming neighborhood.

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

The house had good curb appeal, also the house was over 2000 square feet not even a block away from one of the hottest neighborhoods in city.

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

I found this deal when I was walking around in the neighborhood and noticed the vacant house. I just made an offer and told them that the plan was not to tear it down.

How did you finance this deal?

1 day funding

How did you add value to the deal?

I worked with all of the relatives and one of their attorney's in order to close the deal. I place the property under contract in January 2019.

What was the outcome?

We were able to close after we took care of some title requirements made by the title company.

Lessons learned? Challenges?

I have learn to always ask if the property has been probated.

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

No

@Graham Houston Where you should start investing in rentals, well that depends on what you are comfortable with.  I read that Warren Buffett suggest to only invest in what you know, I would say comfortable with. Since we both live in the Chattanooga area, would you be comfortable buying in East Chattanooga or East Lake where you would have much higher returns then East Brainerd,  Ooltewah, Hixson or typically Signal Mountain or Lookout Mountain.  For example, you can buy a 3 bedroom house in East Chattanooga for 20k and put let say 20k in rehab into it, and rent it out section 8 for around $800 a month. As you know the numbers for East Brainerd is typically higher, but you can find good deals even in the 37421 zip code.  Just a few months ago, I wholesale a house in the Shepard Community for $42,000.00 that is a 3 bedroom, 2.5 bath.  I needed around $28k in repairs, but would rent in the range of $1,100 to $1,400 a month.

@Damian Spears You need to check again about needing to be license to do this.  Because if you are listing the property that might be consider that you need a license.

@Phillip Ballard @Doug DeVore  Please keep me in mind, I am a local wholesaler that has just past my real estate broker exam.  I will be hanging my license with Mountain View Property Management company.  So keep me in mind.

@Paul Nichols I would say what is fair is what you both could live with.

@Cliff T. try Mountain View Property Management.  Please message me I will be placing my license with them next month.

I have a deal that I see is a no brianer, but I do not have one person that I know willing to fund me.  I found a 5 mobile homes that are renting for $500 a month each mobile home ($2,500).  The rent has not been raised in 7 years, but beyond that after I include the water, vacancy 10% which I doubt, property taxes and $200 for a month for a management fee, I would still clear $18,400 a year.  No one in my whole circle is willing to fund it.  Maybe I need to wholesale a few more years in order to save up enough money to buy something cash.  Any ideas?

@Sam Mitchell Have you found a company?  If not please message me.

@Larry Spradling also have you considered Airbnb?

@Cody Jensen I would also get the tenants applications, and set a system in place to call you or preferably a maintenance person for repairs.