All Forum Posts by: Kendra Ellis

@Jeremiah Mendoza Did you find a Knoxville Contractor? I would love to connect you with who I use.

@Ryan Vernich I would love to connect you with who I use in Knoxville for our flips!

@Mario Martini , I have an amazing lender who specializes in FHA 203k loans in Knoxville. I also have a contractor who is aware of the hoops they have to jump through in order to help a buyer with the purchase of a home with a 203k loan. I will send you a DM.

@Megan Randolph is this still available? Please DM me the details

@Luke Carl How much are you paying the contractors when they come through this app? I would think the cost would be higher.

@Ryan J. Shope I probably spend 2 days initially cleaning and painting, I didn’t owner finance it to the original owners it was someone who called from an ad I put in the paper. Then the other work was done by my husband because we had just gotten married then and he was just then getting into learning construction. 

@Tchaka Owen, it was so funny to see driving down the road and my friends would make fun of me.  But I was determined to be successful and I knew that I need to invest my money instead of blowing it like most 18 year olds would do.

It was those same friends who now have no career, do not own a home and are just working at a fast food place at the age of 26.

Vs.

Me making smart decision with financing, under standing the value in RE, starting to invest in RE at 18, getting my RE license at 20, being named one of the top 30 agents under the age of 30 in the world for Coldwell Banker, and working my butt off to paid off my house, flip about 5 houses a year and have 2 buy and holds properties.

*** I think I remember saying once to them, you laugh now but this is just the beginning... they especially laughed when I told them I bought a junky trailer.

I wish I would have known about BP back then, I would have love to see where I would be now if I could hear from @Brandon Turner, @David Greene, @Scott Trench & the lovely and frugally miss @Mindy Jensen at the age of 18 when I started all this.

Investment Info:

Mobile home buy & hold investment.

Purchase price: $8,000
Cash invested: $8,000

I bought this trailer on a 1-acre lot with the insurance check from my hail damaged car for $8,000. I drove my golf ball looking car for an additional 2 more years then sold the car to make an additional $3,000. The car cost $8,000 to buy initially because it was a 2008 dodge charger with a salvaged title.

I cleaned out the trailer and painted a few rooms then owner financed it for $50,000 with $3,000 down and they lived in it for 1 year before they stopped making the payments. So we foreclosed on them (cost $1,000 in fees) then added a deck and a new metal roof ( $3,000) then started renting it for $500 a month to a new tenant, she rented it for 2 years and then we evicted her, put new carpet and laminate in ($3,000) then found a new renter for $500 a month for 1 more year. Now we are considering selling the trailer for someone to come move it and then we build a duplex on the property that would bring in $750 a month per each unit.

Here are the numbers:
- $8,000 Purchase Price
+ $3,000 Down for OF
+ $7,000 In Mo. Payments
= Already paid it's self off in 1 year and made +$2,000 additional

Next Tenant:
+$2,000 Profit from previous tenant
-$3,000 in repairs
+$12,000 in rent before eviction
= +$11,000 profit

Next tenant:
+$11,000 profit
-$3,000 in repairs
+$6,000 in rent before eviction
= $14,000 profit after being paid off within the 1st year!

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

I didn't want to waste the money on a new car that would depreciate and not make me money so I decided to take the money and spend it on something that is going to make me money!

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

A family member knew of it and told me about it.

How did you finance this deal?

Using the money from my car's hail damaged check!

How did you add value to the deal?

Cleaning, paint, new roof, adding a deck & new flooring.

What was the outcome?

Great way to make money!

Lessons learned? Challenges?

screen your tenants... we never did.

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

No, not this time.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $107,000
Cash invested: $2,000
Sale price: $140,000

This was our 1st Buy & Hold. We bought it when we 1st got married, lived in it for 2 years, added paint and hardwood in the living room then turned around and sold it for $33,000 more then what we bought it for.

We were hooked!! From then on it was our goal to do live in flips until we have a house paid off free and clear! And we did so after our 3rd Buy & Hold!!

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

We just got married and wanted to buy a house together. I have always been told to buy low and sell high! We bought this as a foreclosure in a great area of town and there was a lot of 1st in the house. 1st time my husband installed flooring, 1st time he patched a sheetrock hole, 1st time I painted a house, etc... It's funny to look back now because what we did was so basic and we messed up but you got to start somewhere!

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

It was on the MLS as a foreclosure, It went multiple offers but since we went just a smidge over asking and we were owner occupant we got it!

How did you finance this deal?

We got a FHA loan with the seller paying our closing costs and my mother in law gifted us the down payment because we were broke!

We did pay her back the day we closed and surprised her with a bunch of cash!! She did not expect it but we like to give back what was given to us and we appreciated her helping us out.

How did you add value to the deal?

We did a few things to fix up the house ourselves, hardwood in the living room, new paint & new fixtures.

What was the outcome?

We listed it on the MLS and got multiple offers above list price!

Lessons learned? Challenges?

Because we lived in the home for over 2 years we got all the profit TAX FREE!!! We found a decent deal and just waiting for the market to change all while living there rent free! My husband and I worked at a gym and had no experience with RE until after this house and this truly is where it all started! It's where our marriage started, where our 1st child was born and where we decided that we will make RE our careers!

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

Who we used for this deal is now and forever will be our core team!!
- Buyer's Agent- My mom, Traci Greene with The Greene Team with Coldwell Banker Wallace & Wallace
- Lender- Marissa and Margo with United Capital Lending
- Listing Agent- Kendra Ellis with The Greene Team with Coldwell Banker Wallace & Wallace
- Contractor- Lee Ellis with Ellis Construction Concepts/ Nice Flippin Homes

I just learned that Clayton Homes is getting into this. You need to do at least 10 units with them but the cost is around $60 a sq ft for all of it!!