All Forum Posts by: Garreton Smith

@Alexander Gonzalez Great question, moving forward I'm only going to work with contractors with skin the game. Whether it's the contractor coming out of pocket some money and getting reimbursed. Also, I will never give a contractor a large payment every again. All payments will be in smaller increments. Lastly, the contract I will put some language stating legal ramifications if they try to pull a fast one. 

@Nikolay V. Great question! This deal was actually pretty crazy. I was on Hubzu looking one day. I found this property, did a quick review, and compared comps. Told myself it would be a good deal, and I legit just bid on it just to see what would happen. I ended up winning the bid! Now I'm like Holy Crap I don't have 95K to close on this haha. That's when I found the money. I just jumped in and figured everything out on the way! I wish I could do a deal deep dive for this deal lol. 

@Aditya Sharma Nice hopefully one offer pulls through! It was a single-family two-story house 1,624 sq ft house.

@Dustin Thoms I actually had a list of hard money lenders from this real estate expo I attended in NYC. So I called all of them and see who would lend to me being a first timer and what terms.

@Steven Luttman I was pretty hands-off- I popped in on the workers every now and then. It was a 2 hour commute for me. I live in NYC. I did gut the place myself that was fun !!

Investment Info:

Single-family residence fix & flip investment in Albany.

Purchase price: $94,000
Cash invested: $60,000
Sale price: $225,000

My first fix and flip deal! Single-family needed to be gutted and updated. From the flooring to the walls we replaced everything!

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

A goal of mine was to complete two fix and flips deals for 2020. I wanted a deal that I could add a lot of value to.

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

Online Auction Hubzu.com. No negotiating

How did you finance this deal?

Hard money lender. 30% down LTV

How did you add value to the deal?

We gutted the property and added everything new. Walls, floor, kitchen, bathroom. I have a before and after video

What was the outcome?

Flipped for a little less than expected. But still made a profit.

Lessons learned? Challenges?

Ugh, where do I start?
1. Always check plumbing and electric work first. I thought I lived in a world where a property that's been vacant for 3 years needed no plumbing or electrical work. I found out quickly I wasn't being realistic.
2. Never overcompensate the contractor, I paid a lot upfront and he started dragging his feet. I fired him halfway through the process. Always have a backup plan.
3. Time is money, be smart when starting rehab. Adhering to timelines!

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

Trevon Williams Albany, NY Realtor

Investment Info:

Single-family residence fix & flip investment in Albany.

Purchase price: $94,000
Cash invested: $60,000
Sale price: $225,000

My first fix and flip deal! Single-family needed to be gutted and updated. From the flooring to the walls we replaced everything!

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

A goal of mine was to complete two fix and flips deals for 2020. I wanted a deal that I could add a lot of value to.

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

Online Auction Hubzu.com. No negotiating

How did you finance this deal?

Hard money lender. 30% down LTV

How did you add value to the deal?

We gutted the property and added everything new. Walls, floor, kitchen, bathroom. I have a before and after video

What was the outcome?

Flipped for a little less than expected. But still made a profit.

Lessons learned? Challenges?

Ugh, where do I start.
1. Always check plumbing and electric work first. I thought I lived in a world where a property that's been vacant for 3 years needed no plumbing or electrical work. I found out quickly I wasn't being realistic.
2. Never overcompensate the contractor, I paid a lot upfront and he started dragging his feet. I fired him halfway through the process. Always have a backup plan.
3. Time is money, be smart when starting rehab. Adhering to timelines! +Many More Lessons Learned

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

Trevon Williams Albany, NY Realtor

@Terrell Patterson how do I get more information?

4 Units Breakdown
1- Studio
2- 1 Bed/ 1 Bath
1- 2 Bed/ 1 Bath
Purchase Price: 230K

ALL RENTS ARE BELOW MARKET! This building has been kept to the highest standard, a complete gem. The roof was replaced Oct 2020, the owner has maintained the building like it was their personal residence. Showings only for serious buyers with POF. The only 4-unit off/on the market in Rensselaer right now. Separate meters for all units. Tenants pay utilities

**Important**
No information will be provided with POF, no viewings will be provided without POF. This property is for a Buy and Hold Investor. NO GAMES NO OWNER FINANCE. Will only entertain serious buyers

Hi BP Fam, 

I have a 5 unit BRRRR deal I'm looking into, would love your feedback on if this is a good deal or not.

Background: 5 units all 2 bedrooms 1 bathroom units. 3 are occupied renting at $850. Two are vacant. All apartments are in major need of rehab.

Deal City- Albany, NY 

Cap rate- 7-8%

Numbers- 

Purchase Price- 271,000 

Rehab- 110,000 

Utilities- Tenants pay electric and heat (Separate meters) 

ARV Rent- $1300-1500 (Annual 78,000/90,000)

Expenses Total (City/ School taxes, garbage, water, Insurance) - Annual $18,650

Mortgage Estimate- $2500 (Annual $30,000)

Assuming a mortgage of $480,000

I plan to get the value of the building to be at 600,000 then pull 80% cash-out refi. Is this even possible?

Please provide any feedback, all words are welcomed here.