All Forum Posts by: Kendra Ellis

@Eamonn McElroy

Thank you for the insight! I will look into it with my CPA.

@Mark Fries I was filling out my investments on my BP profile. I started sharing the details of my deals from the begining and I am working my way to today. 

@Natalie Kolodij, what do you mean flipping income isn't capital gains?

If I sell as house for $20,000 more then what I bought and fixed it up for does that not qualify as capital gains?

Investment Info:

Single-family residence fix & flip investment in Knoxville.

Purchase price: $146,260
Cash invested: $2,000
Sale price: $195,000

Our 1st Flip!! We bought it on Auction.com without having access to view it. We put $600 into it, we painted 1 wall and added a backsplash then listed it for $195,000 and sold it within 2 hours on the market.

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

It was our 1st time buying a house to flip, I was looking at auction.com and messing around with the preauction bidding. Turns out, if you submit a number that is acceptable to the bank's range that they will review it and you can buy it before it goes up for auction.

This was in 2016 and they actually don't have that option anymore but it was really cool to use it while it was available.

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

Auction.com, got it by doing the pre auction bidding.

How did you finance this deal?

We used private money to buy it. Our holding costs, closing costs, repairs and everything was around $2,000

How did you add value to the deal?

We cleaned it, added a backsplash, and painted 1 wall.

What was the outcome?

We listed the house and it sold with multiple offers in 2 hours! We closed on it in 20 days later.

Lessons learned? Challenges?

We got lucky, every flip will not be like this. BUT, IT SURE DID PUMP US UP!!

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

Yes, I was the Realtor!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $87,600
Cash invested: $87,600
Sale price: $167,500

This was our 2nd home that we bought. It was a foreclosure that we bought as-is with no inspections. We turned the water on 2 hours after closing and water was gushing out of the walls. We ended up finding mold under the hardwood and filled an insurance claim that actually profited us $10,000 because we choose to replace it with tile and carpet and keep the hardwood that was good.

We lived in it for 2 years and then sold it with multiple offers the 1st week on the market! Took all the capital gains and invested it into our next house!

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

Our 2 years were up on our 1st house so we wanted to move and capture our capital gains savings.

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

We ended up finding this one because of a buyer (our real estate client) backing out of it and we came in and offer 20k less then list price and the bank accepted it!

How did you finance this deal?

We borrowed private money to buy it then refinanced it.

How did you add value to the deal?

We pulled up the molded hardwood, replaced it with tile and carpet and painted... That was it!!

What was the outcome?

We almost sold it for 2x what we bought it for!!

Lessons learned? Challenges?

Challenges was the water problem but that ended up benefiting us in the long run!

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

Yes, I was the realtor!

I have been heavily researching this topic and I have laid out the steps to make it possible for me to use this as a great advantage!

1st- Start a partnership and get an EIN number

2nd- Open up a bank account in your funds name

3rd- Take capital gains and invest into a buy and hold in the QOZ

4th- Collect rent, let the tenants pay down the mortgage and then sell after year 10 for the biggest tax advantage

I flip about 6 houses a year- 2 of the 6 flips I will take the profit and put into the Fund bank account then execute one of my option contract that I have for houses that I know that would qualify for QOZ.

I plan on buying 2-4 a year using this strategy but I will also wholesale any properties or opportunities I come across in my QOZ!

I have been heavily researching this topic and I have laid out the steps to make it possible for me to use this a great advantage!

1st- Start a partnership and get an EIN number

2nd- open up a bank account in your funds name

3rd- take capital gains and invest into a buy and hold in the QOZ

4th- Collect rent, let the tenants pay down the mortgage and then sell after year 10 for the biggest tax advantage

I flip about 6 houses a year- 2 of the 6 flips I will take the profit and put into the Fund bank account then execute one of my option contract that I have for houses that I know that would qualify for QOZ.

I plan on buying 4 a year using this strategy but I will also wholesale any properties or opportunities I come across in my QOZ!

https://youtu.be/hCO_hGlNL5M

Here is a great webinar speaking about QOZ! Let me know if you are looking to invested in a QOZ, I am Realtor that has quite a few QOZ in my market!!

@Kalin Uluave I am an agent in Knoxville, TN and would love to help you find some multi family to BRRR. If you are considering Memphis I think you should also look into Knoxville. Let me know what your buy box is and I would love to send some stuff your way!

Also, I can connect you with an agent in my network for the memphis area. Just send me a DM.

@Barry Dugan I would love to chat with you about investing in Knoxville and what areas I would suggest. We actually had 5 really good multi family’s come up this week that are worth looking into!