All Forum Posts by: Jake McVey

Quote from @John Clark:

Quote from @Jake McVey:

Investment Info:

Townhouse fix & flip investment in Romeoville.

Purchase price: $160,000
Cash invested: $230,000
Sale price: $275,000

A full rehab in Romeoville. New flooring, kitchen, bathrooms, light fixtures, trim, doors, etc. Ended up selling for higher than expected which makes us want to return to the neighborhood for another one!

I see no accounting for closing costs and no accounting for interest paid or interest foregone, depending on how it was financed. 

I do believe I discern agent commissions though.

Once everything is properly accounted for, what was the return on investment?

 Yes John, this is simply the purchase and rehab costs as my "cash invested". Closing costs, commissions, property taxes, utilities, interest, and many more costs are always a factor. With all costs, we ended up with a 22% cash on cash return.   

Investment Info:

Townhouse fix & flip investment in Romeoville.

Purchase price: $160,000
Cash invested: $230,000
Sale price: $275,000

A full rehab in Romeoville. New flooring, kitchen, bathrooms, light fixtures, trim, doors, etc. Ended up selling for higher than expected which makes us want to return to the neighborhood for another one!

Investment Info:

Condo fix & flip investment.

Purchase price: $88,000
Cash invested: $44,811
Sale price: $190,000

1 bed 1 bath 3rd floor walk-up just a block from the lake in Roger's Park.

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

The price and location. We don't work in the city typically, but this deal fell in our lap and with the price and how close it is to the lake we decided it was too good of an opportunity to pass up.

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

It was brought to us by a colleague- the family wanted to sell fast and easy. We have a reputation for doing just that so they came to us.

How did you finance this deal?

Cash

How did you add value to the deal?

Complete renovation- flooring, bathroom, kitchen, some windows, trim, paint, etc...

Lessons learned? Challenges?

Although this one worked out, we learned we probably won't be going back in the city for other projects. It's too far for us to feel comfortable with it and we simply don't know enough about the different areas.

Quote from @Goutham Baskaran:

Hello all, 

I am looking to get into real estate flipping in the suburbs of Aurora, Bolingbrook, Romeoville, Glen Ellyn etc. If you are a realtor who has properties ready to take a look and/or you are an aspiring investor wanting to just network, message me! Currently looking to buy a home in the 250-300k market range. Already preapproved and looking to get a home by May end. 

 Best of luck! I'm an agent and investor in the area, it's extremely difficult to find properties on the market at the moment.  You'll be competing with homeowners who don't need to make a profit and they can pay much higher.  It is possible, but very hard to do.  You need to know your target areas extremely well, you're rehab costs extremely well, and act extremely fast as homes come to market.

We've purchased two properties so far this year that we're rehabbing, but both were purchased off-market. If you can find a way to have off-market deals brought your way you'll have a much better chance at finding a property quickly.  

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $240,000
Cash invested: $300,000
Sale price: $370,000

This property took us a bit longer than expected as my wife and I welcomed our daughter into the world in the middle of the project, but we were still able to get it ready for the spring market! We completely renovated the home and, of course, ran into a few surprises with the exterior and sewer line, as well as losing a full month while our first buyer could not obtain financing, but are very happy with our outcome.

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

Found in the "private network" which is basically a "coming soon" for Realtors

How did you finance this deal?

A combination of a HELOC on another property and private financing

How did you add value to the deal?

Complete rehab

Quote from @Account Closed:

Hi there vesties, real Estate agents and much moreee!!!! I’m excited for my recent account on bp and even more excited to see what I’ve been missing!! It’s a whole tons to learn on here and new vesties to meet. Im taking on the world of wholesaling at the moment and I’d love to interact with you all and hopefully we can learn from each other !! It took me a while to realize that I want more than just a job I want a career and what’s better than doing what you love and making a living with it!! If anyone would like to speak about all things real estate I’m open can’t wait to chat 💬!!

-Kami W

(Located in the west suburbs Illinois)

 Hi Kami,

I'm out of Bolingbrook (My office is in Naperville).  Happy to talk real estate... and if you're wholesaling I may be interested in picking up some deals as well.

Quote from @Sarah Stapp:

I'm looking to kick off the BRRRR method with a vengeance and looking to find my team - if you are an agent, contractor, lender, property manager or wholesaler, I'd love to connect and see how we can work together. Thanks!

Hi Sarah, I am a Realtor, flipper, and landlord in Will County. Feel free to reach out to discuss! Happy to have a conversation on how we may be able to work together or simply answer any questions you may have.

From my understanding, yes this applies.  The service is not free if you are being paid by the landlord.

Quote from @Brandon Kowalski:

Hello All, I am a recent college graduate looking to get into REI and am looking for a advisor/partner to do deals with and take me under their wing. I am eager to learn and have some background knowledge with the industry but still have a lot to learn. I have been looking at small multifamily's in Illinois but quickly realized that with the property tax and interest rates being where they are, it would be hard to make a decent return. This has lead me to looking OOS as I have a solid amount of capital saved up to invest with. I've been considering turnkey (RTR) since I want something more passive as I am working full time in accounting but don't know if it is the way to go for my first deal. If there are any investors that have any advice on how they initially got their feet in the industry or would like to take a rookie under their wing, please reach out to me.

 Hi Brandon, I'm not sure what your current living situation is- but I advise young new investors to always start there first to make sure their personal living expenses stay low.  Whether that's house hacking or buying a fixer upper to live in for cheap with the plans to later turn it into a rental (that's how I started).  If you can live way below your means long term, you can continue to build up capital and place it into other properties. Let alone, when you get into home ownership you learn a lot more about the maintenance that is involved owning a home and have a better idea of what surprises may come your way in an investment property.  

I'm an investor and agent right next to you in Bolingbrook- feel free to reach out to talk real estate anytime!

Quote from @Dan Chong:

Hello everybody!

My name is Dan and I am new to the Real Estate industry. I have been reading and researching about real estate for a few years now, but never took that first step until now. Even if you are not willing to work with me, maybe a few tips!! 

Many thanks!!

Hey Dan, welcome to real estate!  I'm an agent and investor out of Bolingbrook IL so not too far from you at all.  I'd  say these other two hit the nail on the head.  Getting into flipping is hard- you need to get very specific about what types of homes you're interested in, what area you want to focus, what extent of a rehab are you comfortable with, and what your budget is for both purchase and rehab.  If don't break things down it's extremely easy to get lost and overwhelmed analyzing deals.  You need to gain enough market knowledge that when you see a house pop-up on the market in your target neighborhood that you know how much it will sell for once fixed up.  When I first started I literally printed a map of my town and wrote ARV's on it for the different models of homes that were located within each neighborhood I was targeting. If you don't know your market that well, you'll spend a LOT of time analyzing deals and probably end up missing out on listings because others beat you to the purchase while you're still looking for comps.

I work with a lot of first time investors- if you have any questions feel free to reach out.  I'm always excited to talk real estate!