All Forum Posts by: Jack Clough

Thanks for sharing that great deal story!

@James Masotti, @Mayer M., actually I own this one w my 102 E Ayre Street LLC, bought it last January but have just been too busy for it.

@Ashly McGlasson

I would take the loss. If priced correctly then the market should clear itself. The lesson learned is invaluable and soon you’ll be putting that money to work for you rather than letting it sit while it continues to eat into your value.

Needs 40k rehab. Will rent for $1200/mo. ARV is 130-140k

https://www.zillow.com/homes/2...

Agreed! Kind of a lucky find and in a neighborhood where most people don't even bother to look.

Investment Info:

Single-family residence fix & flip investment in Wilmington.

Purchase price: $44,501
Cash invested: $13,300
Sale price: $129,900

Quick flip, rehab time was 3 weeks, just needed clean out, new flooring on first floor and carpeting through stairs and 2nd floor, Property was built in 95 and has a full basement with French drain and newer utilities. We also painted all walls and ceilings, changed out vanity in bath, repaired deck. Listed at 129,900 and sold in 1 week at the asking price. Net profit after commissions and transfer tax will be $55,693, or 82% ROI.

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

The numbers. I originally thought the ARV was about 100k and purchased the property based on that potential. The comps in the area were all at 95k but the difference was that we were the only block that is not in the flood zone. This raised our projections and my realtor proved to be right with his suggested list of 129,900.

All you have to do is drive through.... Beautiful old architecture that is neglected and in disrepair... shops on the main drag that are vacant. And then of course it's NJ which presents other challenges (unfriendly business environment). It's too bad really. I have a friend who grew up there and is sad about its current state. They have tried to revitalize before but to no avail.

I’m in

call yourself anything you want, if you bring a good deal then I'm buying.

And if you (anyone) bring something that's clearly not a good deal and it's obvious that you're greedy, clueless, or both then you (anyone) won't be taken seriously again. In which case your "list" of buyers will evaporate. Sure, one might find a few clueless buyers to take their deals, but then they will get zero repeat business. Done. Dried up.

Much more to say on that subject and great thread, but I'll leave it at that for now. And if you have a deal then let me know! 

I used a home equity loan to purchase my first rental property and it worked out great. As far as using your 401k, IRA, or whatever plan you have I think now is the perfect time (in my humble opinion) to take it out of the markets and invest in real estate. The economy is very strong and the markets could very well continue to go up, but regardless we are overdue for a market correction or at least a sideways trajectory in stock valuations which means slow growth for investments in the stock market. And besides, maybe your passion gives you the ability to find diamonds in the rough and therefore outperform the s&P 500. Just sayin...