BRRRR and abundance mindset for the win!!!BRRRR and a TIP OF THE DAY : )
RUN YOUR NUMBERS!!!! If the deal works for you, pull the trigger! Take action and celebrate the win!
Abundance mindset vs. scarcity mindset in Real Estate.
I just completed my refinance on the 2 quads I bought last year.
Lets look at the #’s!
Purchase Price $396,666.66
Per Unit Price $49,583.33
Paid wholesalers $60,000
Paid Private lenders $46,372
Rehab cost $67,267
My money in the deal $35,933
Old Rents $4200
It was distressed. I renovated the exteriors, repaired the interiors of 6 units and completely renovated 2 units.
New Rents $6500, after Property management $5850
Refi for 30 years @ 4.25% Int rate
Monthly payments including taxes and insurance $3290
Cash flow Total $2560
Per Door $320
Cash out at refi $82,310 : ) : ) : )
I hope this post is encouraging and shows how it is possible to create win/win deals in Real Estate. I hear about and see so many new investors counting OPM (other peoples money). How many people do you know that would have not done this deal or blew it because they were worried about the wholesalers making $60,000 on it? Focus on if it works for you and if it does, move forward and be happy that you did. In this case, it turns out the wholesalers are good friends of mine. I high fived them and we had celebratory beers! They won, I won, and my private lenders won! Those are the kind of deals that I love to do! You go further, faster, in Real Estate and life, once your mindset is right. Make the mental shift! You'll be glad you did!
Oh yeah…..
I left out how this all went down in the middle of a pandemic and I lost all of my financing a week before closing. I pivoted, I grinded, I collaborated, I commiserated, and I figured it out. I was under contract to actually by 12 units and because the financing market dried up over night I decided to wholesale the 3rd Quad to a friend. I made a 30k fee, he renovated a few units, raised the rents and is about to flip it for a very nice profit. It’s a relationship business. Make them, foster them, and grow together! Have a great day!
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BRRRR and a TIP OF THE DAY : )
RUN YOUR NUMBERS!!!! If the deal works for you, pull the trigger! Take action and celebrate the win!
Abundance mindset vs. scarcity mindset in Real Estate.
I just completed my refinance on the 2 quads I bought last year.
Lets look at the #’s!
Purchase Price $396,666.66
Per Unit Price $49,583.33
Paid wholesalers $60,000
Paid Private lenders $46,372
Rehab cost $67,267
My money in the deal $35,933
Old Rents $4200
It was distressed. I renovated the exteriors, repaired the interiors of 6 units and completely renovated 2 units.
New Rents $6500, after Property management $5850
Refi for 30 years @ 4.25% Int rate
Monthly payments including taxes and insurance $3290
Cash flow Total $2560
Per Door $320
Cash out at refi $82,310 : ) : ) : )
I hope this post is encouraging and shows how it is possible to create win/win deals in Real Estate. I hear about and see so many new investors counting OPM (other peoples money). How many people do you know that would have not done this deal or blew it because they were worried about the wholesalers making $60,000 on it? Focus on if it works for you and if it does, move forward and be happy that you did. In this case, it turns out the wholesalers are good friends of mine. I high fived them and we had celebratory beers! They won, I won, and my private lenders won! Those are the kind of deals that I love to do! You go further, faster, in Real Estate and life, once your mindset is right. Make the mental shift! You'll be glad you did!
Oh yeah…..
I left out how this all went down in the middle of a pandemic and I lost all of my financing a week before closing. I pivoted, I grinded, I collaborated, I commiserated, and I figured it out. I was under contract to actually by 12 units and because the financing market dried up over night I decided to wholesale the 3rd Quad to a friend. I made a 30k fee, he renovated a few units, raised the rents and is about to flip it for a very nice profit. It’s a relationship business. Make them, foster them, and grow together! Have a great day!
