All Forum Posts by: Gabriel Kolendrekaj

I've used We Lend LLC in NYC about 3 times, no doc loans, 14 day close. Newbies usually get hit with 10% 2 points and a 1500 processing fee. They rip you apart in points and other bs fees, but sometimes when you have no better alternative what can you do.

Talk to Solomon...I tried to posting a number but apparently I'm not allowed. Im new to BP so IDK if messaging me is an option on here and ill give you the number. Or you can look up welendllc on instagram. 

I wanted everyone opinions on this idea I came up with, that I'm hoping will be fully ready by end of year. (Before someone jumps at my neck....obviously I know I haven't come up with the idea of partnerships lol but I mean in context of for my family and friends)

So when I started doing my first flip I posted constant updates on Instagram, and a lot of friends and family I had took notice and followed along. We finished our first flip for a 150k profit, then bought another and so on and so forth and I constantly posted updates on each flip we did, and everyone seemed to love the updates, and everyone had the message " I wish I could do that but I don't have that kind of money", news flash neither do I, Hard Money loans, and ton of credit card debt has gone a long way into these flips. A lot of good friends of mine, family members wanted me to help them get in but no one had more than 30-40k to their name, and I didn't want anyone risking everything for a flip. 

So I came up with a way everyone can get involved without risking their whole livelihood. I messaged everyone back and pitched an idea where we are all equal partners in an llc, we each put in 10k each and use that money towards buying a house to flip. I would be the managing member, and have total control over what we bought, sold, renovated, or held long term. This kind of dictatorial rule over the llc was my idea of making everyone else involved more comfortable with the idea of investing 10k with other people they may not know. I had the knowledge and experience and I was the member that connected everyone else together, and they only wanted me to control what was and wasn't done with the money. 

I had an attorney draw up the operating agreement that had these keys points. All profits would be split equally among the partners, I would be the exclusive realtor on purchases and re-sales 3% if sold in house 4% if through a cooperating broker, in the event that we hold a property as a rental, I would be the property manager at 5% of collected rents, to remove me as managing member there had to be a 70% majority, all members must always have equal shares of the company, distributions of profits are done after completion of each deal unless 100% majority agrees to roll over profits into another deal giving us more purchasing power. 

My idea is to take the 100k use it to get hard money loans, or other kinds of financing to purchase and rehab properties. Any member of the group is welcomed to come along and shadow me as we move through the deal to learn so that they may choose to do one by themselves later on. 

I genuinely did this because I wanted to give my family and friends and avenue through which they can learn about real estate investing and encourage them down this path, there really is no major benefit to me doing this group because I make 10x more when I do my own flips. But a lot of them starting talking to me about going to these freaking 30k seminars to learn, and that would have just killed me. To have them burn that money for something they could easily learn by investing 10k in themselves instead of putting 30k into someone else's pocket. Yes I get my realtor commission and management fee if we hold onto something but other than that I'm make no other money through this company. 

So far my flips have averaged 117,000 in profit. Even doing one deal a year at a 80k profit means that everyone would be getting a 80% return on their money. I don't think I could have given them a better avenue to invest and learn through. 

What do you guys think of this strategy? Am I getting in over my head? Am I making it too simple? Will I grow to regret this?

53 Stanley Ave, it was in the New Brighton Section

We bought it march 12th and we resold it october 2, wasn't too bad for full gut reno. 

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Staten Island.

Purchase price: $265,000
Cash invested: $180,000
Sale price: $615,000

First flip my father and I did. An uncle of mine had cash from a long term rental that I had recently sold for him. I found this house for him, he had money to buy the house cash, and could have found a bank to lend him the renovation costs but he asked me to jump in on it with him if my father and I paid for and did the renovation, we jumped at the opportunity.

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

We originally intended on doing a BRRR on the property as it was a large 7 bed 3 bath plus a full size basement that fit an extra 2 beds(not fully legal). But after doing our number we saw our return was around 150k we decided to sell and move into something else.

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

The office I work for does a lot of Foreclosure properties, my uncle had just recently sold a long term rental with me and he asked me to find him a property to buy, this came up 2 days after he closed on the other one and he had to pay 50k above asking to secure the deal.

How did you finance this deal?

My uncle had cash to purchase it outright but was short on rehab funds for the property, which took about 180k. He asked my father and I if we wanted to jump in it with him as partners and pay for and do the renovation ourselves, and of course we said yes. Mind you we only had about 60K between the two of us, so the rest of property was financed through lendingclub, ton of credit card debt, and family subcontractors that were willing to wait on money until we sold the property.

How did you add value to the deal?

We did a full interior gut to the studs renovation, full exterior renovation, dug out the basement and gained about 7 inches, fully finished the basement, added a bathroom in basement, and added a 4th bedroom on second floor.

What was the outcome?

A beautiful 7-9 bedroom property that we managed to get sold with 2 weeks on the market to an investor who wanted to rent it long term.

Lessons learned? Challenges?

This was our first flip and boy was this the renovation from hell. We did not have a full crew to take on this project smoothly. Like the rookie investors we were we decided to give the plumbing work to the neighbor of the property who had worked for a plumbing company for 20 years. As you can imagine it did not go well at all. We switched plumbers midway through, and ended up costing us at least an extra 6k going the cheap route. So we learned, USE REPUTABLE CONTRACTORS!You'll always pay twice.

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

I was the real estate professional, found the deal, ran comps, negotiated marketed...etc

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Staten Island.

Purchase price: $265,000
Cash invested: $180,000
Sale price: $615,000

First flip my father and I did. An uncle of mine had cash from a long term rental that I had recently sold for him. I found this house for him, he had money to buy the house cash, and could have found a bank to lend him the renovation costs but he asked me to jump in on it with him if my father and I paid for and did the renovation, we jumped at the opportunity. I had been wanting to flip houses since I was 16 but didn't have the money or knowledge of how to get money, so I got a lucky break with my uncle offering us an opportunity to jump in with him.

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

We originally intended on doing a BRRR on the property as it was a large 7 bed 3 bath plus a full size basement that fit an extra 2 beds(not fully legal). But after doing our number we saw our return was around 150k we decided to sell and move into something else.

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

The office I work for does a lot of Foreclosure properties, my uncle had just recently sold a long term rental with me and he asked me to find him a property to buy, this came up 2 days after he closed on the other one and he had to pay 50k above asking to secure the deal.

How did you finance this deal?

My uncle had cash to purchase it outright but was short on rehab funds for the property, which took about 180k. He asked my father and I if we wanted to jump in it with him as partners and pay for and do the renovation ourselves, and of course we said yes. Mind you we only had about 60K between the two of us, so the rest of property was financed through lendingclub, ton of credit card debt, and family subcontractors that were willing to wait on money until we sold the property.

How did you add value to the deal?

We did a full interior gut to the studs renovation, full exterior renovation, dug out the basement and gained about 7 inches, fully finished the basement, added a bathroom in basement, and added a 4th bedroom on second floor.

What was the outcome?

A beautiful 7-9 bedroom property that we managed to get sold with 2 weeks on the market to an investor who wanted to rent it long term.

Lessons learned? Challenges?

This was our first flip and boy was this the renovation from hell. We did not have a full crew to take on this project smoothly. Like the rookie investors we were we decided to give the plumbing work to the neighbor of the property who had worked for a plumbing company for 20 years. As you can imagine it did not go well at all. We switched plumbers midway through, and ended up costing us at least an extra 6k going the cheap route. So we learned, USE REPUTABLE CONTRACTORS!You'll always pay twice.

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

I was the real estate professional, found the deal, ran comps, negotiated marketed...etc