All Forum Posts by: Jason Coleman

Send me a DM. BP doesn't let me post contact info. 

@Huan Nguyen Your assessment is fairly accurate. I currently own properties in the Glenwood, Spring Garden, Park Grove, etc. @Ryan Richmond has a point as well about the area between Walker and Spring Garden. Lindley Park is an exceptional rental area. Glenwood, Revolution Mill, and S Elm Eugene are three specific areas I'm actively buying in. The Greensboro rental market is set up for the long term. Good luck!

@Joe Aiola I agree with you on this. I find that if it's an actual deal the money will show up no problem. Even though we are in the midst of a pandemic, there is still plenty of money out there. 

@Michael P. My typical purchase price is around 80k with 10-20k rehab. I have a couple mid range rentals but cashflowing SF is what I prefer. I don't personally flip much anymore unless I just can't help myself : ) Buy and hold rentals and my realtor business is what I focus on. My intention is to purchase my first mobile home park by the end of 2020. Covid permitting ; )

Wish I could attend Joe. Alex is Awesome! Thanks for setting it up

@Geetha R. I currently own 13 rentals in Greensboro NC. 4 in Lexington and 1 in Wilmington. The greensboro market is set to grow for decades to come. No better market in NC in my opinion. Our median sales price is about 200k currently. The economy here is extremely robust which is fueling our growth. Steady population growth.  Investors, workers, homeowners are getting priced out of major markets like Raleigh and Charlotte and moving their funds here. Let me know if you'd like to talk about my investing experience here. 

Greensboro NC. Seller Financed deal 605k purchase price 0% down payment. 5% interest rate. 11 single family homes producing 7,000/month. Most under market rent. 7k out of pocket total. 

I am working with a PM. I don't like to manage any properties under about 110-120k. That's basically where I draw the line. This portfolio was a little too much for me to absorb at once anyways so that's another reason I have a PM. It would have taken up way too much time on the front end.

Investment Info:

Single-family residence buy & hold investment in Greensboro.

Purchase price: $605,000
Cash invested: $7,000

Seller Financed!!! Portfolio of 11 single family rental homes. Slam dunk deal that took me over 6 months to work out the kinks. 0% down. All I had to do was pay my attorney and pay the taxes to close which totaled 7k out of my pocket. Unbelievable deal... So pumped about this one. It really lays the foundation so I can really scale portfolio. This will be the one I talk about on the BP Podcast ; )

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

The cash flow, zero down payment, and diversification.

7k worth of monthly income and almost every single house is 50-150 dollars under market rent. Looking to stabilize and up the rents to 8k+ total within a year which will provide 2500 worth of positive cash flow. Structured the deal at a 5% interest rate with a balloon payment at 5 years. 30 year amortization. Each payment puts about 1200 worth of principal back into the deal. Crazy!!! Come on Brandon... Call me ; )

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

Doorknocking!! Too me 6 months to negotiate to the final numbers. Worked out the interest rate and purchase price to compete with cash buyers. The seller has plenty of money in the bank and didn't want to be a landlord anymore. I provided a solution that hedges her risk and still provides her cash flow.

How did you finance this deal?

Seller Financed!! Zero down!! 5% interest, 5 year balloon, 30 year amortization

How did you add value to the deal?

There are a few properties that I could add a bedroom or update some features. Shouldn't cost me more than 20k total if I even want to do that rehab. The properties are in good shape and the tenants are paying under market rent. I will boost rents within a year (depending on leases) and then focus on rehab or value add.

What was the outcome?

Just closed and looking forward to the freedom that this portfolio will provide. Bigger Pockets thank you!! If it wasn't for you I wouldn't have started this journey 4 years ago. Brandon, Josh, David, all of you!!

Lessons learned? Challenges?

Don't stop moving forward. There were plenty of times this deal was in jeopardy but I chose to follow thru and figure out the solution so it would make sense for both parties.

Also, doorknocking works! I knocked on a door and that person referred me to the seller of this portfolio. I truly enjoy those conversations from scratch. I am a Realtor as well so it's beneficial for my business, clients, buyers, and sellers. Just go out and start knocking.

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

I am a licensed agent. I didn't pay for appraisals because I know how much these properties are worth. I also had my inspector look at a only a tiny portion of them. The good thing about seller financing is it really makes the seller disclose most issues with the properties. If they hold that information back it might put the entire deal in jeopardy. Of course, trust but verify. Two Seller financed deals and counting. Loving this real estate game : )

Well... what are you waiting for??  ; )