All Forum Posts by: Jason Brown

Investment Info:

Single-family residence wholesale investment.

Purchase price: $250,000
Cash invested: $262,000
Sale price: $376,000

Solid wholetail deal. Little longer on the hold period but profitable exit.

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

Good relationship with local wholesaler who needed capital to take down the project

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

I have worked with this wholesaler on multiple projects

How did you finance this deal?

Private money and my own capital

How did you add value to the deal?

My contribution was primarily that of the lender

What was the outcome?

Project sold for 125k over purchase

Lessons learned? Challenges?

All investors should consider private money lending as an additional income stream if due diligence is done correctly and the project is a good fit.

Hi Ivonne,

I'll give this a go. 

As a landlord here in Miami the problem is not so much the Section 8 process or any other housing authority. 

The issue I find is that when I go to list my units, which are clean and moderately upgraded apartments in Little Havana and Allapattah I literally have 70 applicants in 24hrs via facebook marketplace or through the apartment rental platform my property management software interfaces with (like Apartments.com etc).

So when I have 70 people lining up with first, last and deposit with no other middleman or agency impeding the process or requiring inspections or causing delays or requesting additional paperwork be filled out where is my incentive to go the section 8 route?

Again nothing against the program but I believe there should be an actual INCENTIVE above these other applicants in order to get consideration.

I can have a background and employment checked tenant in place in 2 business days start to finish so I need the section 8 process to be easier, faster and more profitable than that.

They like to toute the whole "guaranteed" rent collection mantra but we all know that any good landlord with buttoned up processes who is worth is salt is not scared of NOT collecting rent.

@Katie Williams

Sigh….. everyone on here just read this post and immediately jumped to EVICTION. SMH this is why we are seen the way we are.

If this tenant successfully passed your screening and background checks and then all of a sudden just completely cut off communication with you to the point where her number isn’t working how do you know she’s even OK? Did something happen? Do you know if she’s been going to work? Have you reached out to her emergency contact to many sure she’s alright? She’s not laid up in a hospital bed somewhere?

If you’ve confirmed all these things then by all means proceed as the others above have mentioned. Just make sure your tenant isn’t kidnapped or even worse laying in the street somewhere first.

As @Melanie Onaghinor suggested I would second the transactional lending option. I’m currently deploying approximately the same amount of money you’ve got with a wholesaler partner and full year I’m looking at returns of approximately 35%. It’s about as passive as it gets.

Congratulations!

Miami Condos are my sweet spot and I'll take those numbers any day of the week.

Investment Info:

Single-family residence wholesale investment.

Purchase price: $230,000
Cash invested: $230,000
Sale price: $320,000

Wholetail deal. Great location and strong comps.

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

This was an opportunity not requiring any rehab and minimal involvement.

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

This was a fast wholetail deal that I partnered on with a wholesaler who I have worked with previously.

How did you finance this deal?

Private money

How did you add value to the deal?

No value add necessary. Deal was significantly discounted on purchase. Closed with cash for a resale in under 60 days.

What was the outcome?

Netted 300K after commission. Group walked away with 70K profit.

Lessons learned? Challenges?

Partner, partner and partner. Lots of opportunities for investors who can raise funds and help knowledgeable wholesalers who are actively taking down deals.

@Sylvia H.

Maybe I’m the only person who is ignorant here but what exactly is being painted that’s running you 12K? That’s a bag of money.

hey @Darius Kellar I saw your original post on this earlier. Congrats again very inspiring.

Two questions:

Obviously our areas are doing and I'm not picking up any sub 30K properties here in Miami. I've always heard skeptic caution about properties at these price points because they come with a difficult tenant pool which then requires much more intensive property management and capex.

1. Are you self managing?

2. If you are self managing are how much time monthly do you average you spend on your portfolio?

I've seen that you do a good amount of cleaning them up before you stick a renter in there so perhaps the issue not so much the capex but the property management.

Keep killing it!

@Sami Gren

If the prospective tenant does not have the means to move in as specified by you the owner then they are not in actuality…… a prospective tenant.

 Yeah the reason I leave off foundations from my big 4 is simply because I NEVER touch them if they've got foundation issues lol but obviously that's an shoe in. 

Honestly if its a kitchen and bath remodels I'm not necessarily pulling permits. For me plenty of guys can do demo, hang cabinets, move non structural walls, framing, tile work without pulling a permit. Now if you've got to move/upgrade a service panel or do the rough in for new additions that falls under my big 4 and to the permit office we go.