All Forum Posts by: Harvey Yergin IV

There are a LOT of reasons @Joshua Hively and I are really glad to be a part of HomeVestors in a time like this:

1) Residual brand recognition: Even if we pull back on advertising and even if homeowners are not getting our mailers, they've heard of us and know we buy houses! That's 24+ years of brand power!
2) Ever agile marketing strategies: We have a team of dedicated marketing experts diligently monitoring consumer trends with pinpoint specificity and instantly tailoring our programs and messages to those trends.
3) A network of 1100+ investors across the country: We are not alone. We lean on the experience and advice of colleagues around the country who are but a text or phone call away. We are happy to have a nationwide family especially at times like these.
4) Training: At least 2x a week, we have access to training specific to current economic climate and market conditions.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $138,000
Cash invested: $25,000
Sale price: $226,000

Contributors:
Joshua Hively

Solid house in a beautiful neighborhood on the West side of Columbus, OH. Great price from another wholesaler in our market.

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

The size of the margin

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

My partner found this deal. He has a duplex in the same neighborhood and is a very active and well-known member of our local RE Investor community. The wholesalers who had this property reached out to Josh because they knew he had a rental around the corner. Again, they initially took another offer. Wouldn't you know, that offer fell through! And there we were! :)

How did you finance this deal?

Hard money loan

How did you add value to the deal?

Completely the flip. Flooring, paint, counter tops, back splashes, bathroom updating, fixtures and other finishing touches.

What was the outcome?

Sold it for $226,000

Lessons learned? Challenges?

Be on site at your project frequently. Things will always go wrong. Things will go VERY wrong if you're not around to help guide your team through challenges and obstacles.

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

Lending Home.

Investment Info:

Single-family residence wholesale investment.

Purchase price: $69,000
Cash invested: $1
Sale price: $74,000

Quick contract assignment off the MLS.

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

Our need to make money.

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

MLS. Made the best offer we could make with intention to purchase and wholetail. Seller went with another offer initially. That offer fell through and there we were!

How did you finance this deal?

Assignment

How did you add value to the deal?

N/A

What was the outcome?

Assigned it to another local investor for $5K.

Lessons learned? Challenges?

You can find deals on the MLS and you can even assign those deals!

@Jay Hinrichs does that make sense? Is the decision to close your doors logical? I'm just wondering what they are seeing that would make them do that. Perhaps they will have a harder time securing capital to lend...maybe they had been operating on such tight margins that with tighter grips on institutional money, they just can't keep the lights on anymore. I don't know what you're seeing in Oregon, but the RE market is still white hot here in Ohio!

Here is a a post-COVID lending prediction from Fund That Flip, Inc’s CEO Matt Rodak and some steps you can take now to prepare. In short, you can expect:

- Smaller leverage percentages

- Larger financing costs

- More stringent underwriting

https://learn.fundthatflip.com/real-estate-investing-blog/real-estate-investing-post-covid-19?utm_medium=email&_hsenc=p2ANqtz-9lhYehwNiaBMj3-n-r-w4h1QsgFRcDYpNndZliP0dGq-uYlX2ttR7jduAYqVKPPvPwi5FLhdnU6QCvtkMdIyI7UvpugClOfopA8r_xOhUfrbUg5ZA&_hsmi=85981092&utm_source=hs_email&utm_content=85981550&hsCtaTracking=d2433559-afc1-4a50-b440-20d8ed0286cc%7C9ecf9f03-f4c6-483e-81d5-01ba8e6fabea

@Robert Ellis I mean I’ve run into it more than once in a short time and I think it’s slimy because it’s underhanded (assuming it’s false).

@Remington Lyman I do not.

A slimy trend we're noticing in Columbus, OH. I'd imagine it happens elsewhere. 

Investors telling home owners that they plan to move into the house if they buy it.

Are you using it?

I am so glad to have a professional PROPERTY MANAGER in this mayhem for so many reasons...

1) Wisdom-based proactivity and guidance based on more than 20 years of experience. They've seen it all!

2) Processes for and influence on contractors when entering home--putting residents at ease and ensuring my units are cared for.

3) Proactive communication with me and the tenants.

4) Procedures for working with distressed tenants to keep them in the unit, get them over the hump and keep me from an unexpected turn and lease-up.

5) Professional leasing agents helping me keep vacancy down and cash flow up!

6) The peace of mind knowing professionals are handling my rental portfolio while I focus on growing my business.

It's definitely one of those times I'm proud of my past decisions! 😃

@Tyler Caglia he is VERY familiar with that strategy. He is an investor himself. I would start with a conversation with Marc even if you don't use him for lending.