All Forum Posts by: Grace Widdicombe

Thanks!

ha ha, I know, right? I did it to learn the means of wholesaling. Difference is that I purchased it, and then sold it. I learned more than just the contract needed and laws.  Great way to learn, and make $5k from the course. 

Investment Info:

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

Purchase price: $88,000
Cash invested: $138,000
Sale price: $252,500

This was a very ugly duplex, one-side was built in the 40's and the other side in the 60's with a garage between the two. It was a seller-financed deal, but the problems with the initial contractor was quickly sinking the deal.

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

I was super excited about the deal, because the seller was willing to finance the sale of the property. It needed a lot of work, but I thought I could handle it.

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

The seller found me via my website and I answered the call right away. He said the magic words, "contract for deed".

How did you finance this deal?

So the purchase was seller financed, and the repairs were financed through my cash reserves and a HELOC loan.

How did you add value to the deal?

Totally gutted the old half, put insulation in through-out, and rebuilt an open concept little 2 bed-1 bath unit, added siding, and new windows. The other side needed just new floor, paint, windows and appliances.

What was the outcome?

I scraped out a net profit in the end.

Lessons learned? Challenges?

I could write a book on the lessons learned on this flip, from hiring to firing several contractors. Brad Larsen - GC saved me by watching over the contractors. The first thing I learned that if you have a seller financed purchase, the hard money lenders don't want to be in 2nd position. So structure the deal so that the lender is in first.

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

Brad Larsen - General Contractor, Alex Vincent - General Contractor,

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $115,500
Cash invested: $120,000
Sale price: $155,000

Manufactured home on land

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

I like deals where I negotiate directly with the seller and close without a listing agent.

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

The seller found me from my website. Determined what the seller needed to get to where he wanted to be, and used cash upfront as an incentive.

How did you finance this deal?

Self-financed with a HELOC.

How did you add value to the deal?

I partnered with a GC who did all the work of repairing and replacing flooring, repairing and replacing trim, painting and hauling away trash.

What was the outcome?

It was a great first experience in partnering on a fix and flip. I sold it by just placing my sign in the yard.

Investment Info:

Single-family residence wholesale investment in Albany.

Purchase price: $33,750
Cash invested: $33,750
Sale price: $39,950

Purchased SFR from a wholesaler and then wholesaled to a flipper in the area.

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

This deal helped me learn how to wholesale and make connections in the wholesale business.

Investment Info:

Single-family residence fix & flip investment in Eugene.

Purchase price: $119,500
Cash invested: $55,000
Sale price: $231,000

Excellent location for a 3 bedroom/1 bath house in south Eugene. Sold it without listing it in just a few days.

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

I purchased this house directly from the sellers (desperate), and was able to negotiate a great deal. The sellers came to the open house and were so excited to see how we turned the house into a beautiful home.

How did you finance this deal?

We financed with our own cash for the rehab and a small down payment, and the rest from hard money.

How did you add value to the deal?

We repaired water damage in the sub flooring, created an open kitchen look, rather than the galley type kitchen. Gave the laundry room it's own door from the hallway, rather than having to go through the galley kitchen. Re-added 3rd bedroom, rewired and added 200 Amp Panel. Removed the rotten wood deck and had a concrete patio poured as well as re-poured the driveway and front path. And then the usual, new appliances, great looking hardwood floors, and paint.

What was the outcome?

You wouldn't be able to do this amount of a rehab today for under $50k, but it was still the recession and contractors needed work.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Eugene.

Purchase price: $179,600
Cash invested: $72,500

Contributors:
Greg Widdicombe

Bought a four-plex as first investment property, and still have it today.

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

During the recession I no longer had a paying job, and decided to get into real estate investing. It took me 2 years to finally figure out that we were in position to buy with a mortgage because my husband had w-2 income, and prices were rock-bottom. By that time I had built up a team, had an inspector, and this property came out good.

How did you finance this deal?

Conventional loan, 25% down.

How did you add value to the deal?

I manage the property myself, and as tenants have moved out we have upgraded the interior with vinyl plank flooring, nice molding and more.

Lessons learned? Challenges?

I studied a lot on how to be a successful landlord, and usually I enjoy the experience.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Eugene.

Purchase price: $179,600
Cash invested: $72,500

Contributors:
Greg Widdicombe

4 Plex

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

During the recession I no longer had a paying job, and decided to get into real estate investing. It took me 2 years to finally figure out that we were in position to buy with a mortgage because my husband had w-2 income, and prices were rock-bottom. By that time I had built up a team, had an inspector, and this property came out good.

How did you finance this deal?

Conventional loan, 25% down.

Hi @Amanda Lensink, 

I recommend that you ask a more open ended question and you'll get a more interesting answer, something that you can use to help you.  Here's the question you should ask: 

"How can I obtain rental properties without a W-2 income proof?" 

The answer is through seller financing!  (That's one way) And another way you can buy rental properties is through the method of subject-to.  

Research these two methods and learn what they are, what they mean, and how to present yourself to sellers.  These methods best work if you are negotiating directly with the seller, and not through a real estate agent.   

Here's a link to a previous BP article on Seller Financing: 
https://www.biggerpockets.com/blog/obtaining-seller-financing-in-real-estate

There are many threads on BP regarding Subject-To - which means you buy the property subject to the existing financing (you make the mortgage payments from now on.)

I hope this inspires you.  I know it inspires me. 

Grace

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