All Forum Posts by: Jason Coleman

Thank you everyone for your help. I will keep you updated as I work through this process. Crazy times haha. 

Thank you Kevin. I'm making my contractor calls now.  I've used this insurance carrier for a while and I have a premium policy so it should all be fine. Just trying to get my ducks in a row before the check gets written. Thanks again : )

Hey BP,

So I had my first fire in one of my rentals. This was an electrical fire and NOT the tenants fault. I filed a claim and my insurance company is estimating the damage currently. This is a 4 unit property and luckily the damage seems to be contained to the one unit and no tenants were harmed. Thank you cinder block walls : )

So my question is, how do I know if the insurance company is essentially screwing me on the repair costs? I'm assuming the insurance company wants to pay put the least amount possible. Is this up to me to make sure I have a high end contractor to review and quote the property? Just making sure I understand this process fully. I'm not worried about lost rents which are covered. I'm just worried the potential 20k insurance check turns into a 30k renovation. i don't have actual numbers yet.  Anyone have experience with this? Just want to make sure I'm getting compensated fairly. 

Another quick question. If the fire was from the electrical/wiring then is the insurance company ONLY paying for the one unit to get upgraded electrically? Of course, I would think the insurance company (and myself) don't want to deal with this again with any of the other 3 units. Or would upgrading electrical in those 3 units be my responsibility? Just wondering. 

Thank you in advance for your thoughts. I love BP and can't get enough of this real estate game : ) Preferably no more "apartment fire" calls at 7pm at night though ; ) 

Joseph Orenstein at Atlas Law in Kernersville is familiar with Sub 2's.  Brian Elam at Innovative Closing Solutions is another option. 

Just wanted to post that I dragged my feet on airbnb arbitrage for over a year. Wasn't too crazy about the active management side of this business. Ended up connecting with a guy through a mutual business owner. We ended up partnering up.  I front the money, and he manages the unit. We signed our first lease at the end of December and it looks like we will actually turn  a profit by the end of the first month. For those that are struggling, stop overthinking and double down on your strengths. Find someone where the relationship is symbiotic. There are plenty of people that will do the stuff you don't like to do (paperwork/operations...shoot me). We just signed our second lease today and we're planning to own 10+ by the end of the year. This is straight cashflow of course which is nice, but you want to roll this into more cashflowing real estate assets, not leases.This business model supplements my buy and hold rental portfolio nicely. Keep moving forward. Thanks as always for Bigger Pockets. This community has amplified my life to a whole other level. You can accomplish your dreams with consistent action and personal development. Woop Woop : )

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $88,000
Cash invested: $88,000

HELOC purchase, then refinance in 6 months after rehab. 30k worth of equity on day 1. I had to keep tenant in the home for an additional year with reduced rent. That was sellers terms to close. Tricky part is the refi and renovations. Would like to renovate this property before I refi but it's difficult with the tenant in place. Currently trying to work with the tenant to purchase another property (thru my realtor business) so I can BRRRR this beast asap. Cashflow will be 250/month after refi.

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

Free equity from day 1. Seller was an agent so there was no BS in this transaction.

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

Direct mail marketing with Robot Ink. 1000 letters per month. I've gained about 70k worth of business and equity on these deals with 8,500 dollars worth of total marketing costs.

How did you finance this deal?

HELOC purchase. I will refinance in 6 months so the lender can use appraised value instead of purchase price. You typically have to wait 4-6 months to refinance if you purchased a significantly discounted deal.

How did you add value to the deal?

I will be spending about 15k in order to increase value at least another 25k. Floors, paint, gutters, adding AC. Heat and ductwork present. Just need to add an AC unit. Then I will be able to find a higher caliber of tenant as well. Might add windows but that's another 6k or so.

What was the outcome?

So far so good : )

Lessons learned? Challenges?

Direct mail marketing works!!! Need to find a better system to field calls and set appointments.

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

I am a licensed agent.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $88,000
Cash invested: $88,000

HELOC/Cash purchase then refinance in 6 months after rehab. 30k worth of equity on day 1. The only stipulations is I had to keep tenant in the home for an additional year with reduced rent. 250/month below market rent. Not a bad deal with that much equity. The tricky part is the refinance and renovations. I would like to renovate this property before I refinance but it's difficult with the tenant in place. I'm currently trying to work with the tenant to purchase another property (thru my realtor business) so I can BRRRR this beast. Cashflow will be about 250/month once I refi. It's 650/month now with 800/month rent. Market rent 1050/month

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

Solid equity from day 1. Seller was an agent so there was no BS in this transaction.

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

Direct mail marketing with Robot Ink. 1000 letters per month. I've gained about 70k worth of business and equity on these deals with 8,500 dollars worth of marketing costs.

How did you finance this deal?

HELOC purchase. I will refinance in 6 months so the lender can use appraised value instead of purchase price. You typically have to wait 4-6 months to refinance if you purchased a significantly discounted deal.

How did you add value to the deal?

I will be spending about 15k in order to increase value at least another 25k. Floors, paint, gutters, adding AC. Heat and ductwork present. Just need to add an AC unit. Then I will be able to find a higher caliber of tenant as well. Might add windows but that's another 6k or so.

What was the outcome?

So far so good : )

Lessons learned? Challenges?

Direct mail marketing works!!! Need to find a better system to field calls and set appointments.

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

I am a licensed agent.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $82,000
Cash invested: $22,000

Purchased this 2/1 direct from client. Typically I don't like 2 bedrooms homes but this one had equity built in at purchase. Client of mine who I sold off some of their portfolio and purchases another couple of properties from them. Rehab will be minimal (flooring, paint). Solid deal with 18k worth of free equity day 1. My cashflow is about 150/month. Tenant is qualified and looking to purchase a single family house as well. So this purchase will also make my realtor business more money.

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

Free Equity with minimal rehab.

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

A client referred me to another portfolio seller.

How did you finance this deal?

Straight conventional w/ 20% down financing

How did you add value to the deal?

Will renovate when tenant moves out and increase rents another 150/month.

What was the outcome?

Solid buy and hold with minimal deferred maintenance.

Lessons learned? Challenges?

This one was pretty straightforward. Which isn't the norm haha.

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

I am a licensed agent. Will end up selling another 3-4 of this clients properties then purchase another from him most likely. Investor/Agent for life!! ; )

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $82,000
Cash invested: $22,000

Purchased this 2/1 single family direct from client/seller. Typically I don't like 2 bedrooms homes but this one had a ton of equity built in at purchase. This is a client of mine who I sold off some of their portfolio and purchases another couple of properties from them. Rehab will be minimal upon tenant turnover. Flooring, paint, some cabinet refinishing. Solid deal with 18k worth of free equity day 1. Not a bad deal in a crazy market. Bumped up rents within 30 days of purchase so my cashflow is about 150/month on top of all expenses. 3.75% interest, no points. These rates are unbelievable. I refinanced another property so I technically purchased this property without any out of pocket cash. Tenant is qualified and looking to purchase a single family house as well. So this purchase will also make my realtor business more money. Still loving this game : )

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

Free Equity with minimal rehab.

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

A client referred me to another portfolio seller.

How did you finance this deal?

Straight conventional w/ 20% down financing

How did you add value to the deal?

Will renovate when tenant moves out and increase rents another 150/month.

What was the outcome?

Solid buy and hold with minimal deferred maintenance.

Lessons learned? Challenges?

This one was pretty straightforward. Which isn't the norm haha.

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

I am a licensed agent. Will end up selling another 3-4 of this clients properties then purchase another from him most likely. Investor/Agent for life!! ; )

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Greensboro.

Purchase price: $185,000
Cash invested: $12,000

Seller Financed Duplex @ 5% down. equity from a refinance into this property so there was no cash out of pocket. Was able to increase rents 400 dollars/month within 30 days of purchase. Market rents are 100/month higher per unit. Considering turning it into an Airbnb once tenants move out. Appraised for 15k over my purchase price within 3 months with zero rehab. Another portfolio deal where I sold off most of the sellers properties then purchased one or two directly. Love being an agent ; )

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

Small Multifamily in an excellent area of town. Option to turn into a STR if needed. Market rents were considerably higher. Seller was interested in financing at a decent price.

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

On old roommate called me and was looking to buy a property directly from his landlord. I spoke to the landlord and facilitated that transaction...for free ; ) Turns out this seller had 8 other properties to sell. I sold 7 of them to my clients. Then I purchased this duplex at the end.

How did you finance this deal?

Seller Financed note with a shorter (than I prefer) balloon payment of one year. I knew I was going to refi sooner than later.

How did you add value to the deal?

Immediately increased rents. Option to renovate for much higher rents.

What was the outcome?

Solid buy and hold with more potential as an airbnb.

Lessons learned? Challenges?

Get the deal under contract quickly and figure out how to finance later. I ended up doing a rate a term refi to lower my payments and pay significantly less interest just 3-4 months after purchase.

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

I am a licensed agent. I cannot stress how important that is to find deals in this crazy market : )