All Forum Posts by: Jason Gilmore

Update

Rehab/holding costs ended up being $10k+ under budget and while we went on the market at $325k ($300k was original estimate), we went under contract at $320k. Total hold was 63 days, cost just under $15k (rehab and hold) and we profited ~$81k split two ways!! Went smoother than any other flip we’ve ever heard about and scared to do another, because we know it can’t possibly be as smooth as this one, 🤣🤣.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $205,000
Cash invested: $65,000

Contributors:
Jake Kain

Single family home in Casa Grande, AZ. Helped a former client avoid a foreclosure.

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

Wanted to do a flip to learn that side of real estate and the opportunity arose for us to take on a project. Had a partner who wanted to go in on the project with me!

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

A former client that I had worked with approached me about selling her property, after diving into it, it turned out she was facing foreclosure and the property was not in a condition to immediately sell. I brought in a partner and we discussed many options from subject to, BRRRR, flip, wholesale and we landed on buying to flip to sell.

How did you finance this deal?

30% down, Hard money for the remainder. We paid out of pocket for all repairs.

How did you add value to the deal?

We fixed several issues within the house, including holes in drywall, half paint jobs, broken windows and doors, as well as reestablished utilities and assessed and repaired any issues around that. Replaced flooring, fresh paint throughout and deep cleaned entire property.

What was the outcome?

House hit the market for $325,000! I will update upon sale

Lessons learned? Challenges?

Vet contractors and watch for red flags, overly pushy, overly eager, wants too much money up front.
Hard money isn't as cheap of an option as many investors make it out to be, had to come in with more money up front than we expected and they only lent 70% instead of 80% in the area we were working in.

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

BE Lending - Hard Money Lending
Myself - Agent
Jake Kain - Agent

Experienced investor traveling to Hawaii end of April to beginning of May, looking for meetups happening in Maui or the Big Island in that timeframe. Depending on timing, would love to join and network!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $242,500
Cash invested: $48,500

Short term rental investment with a business partner. This is in the same complex as our other two STR, so we will be able to expand and host larger families traveling to the area.

Secured owner financing on 80% LTV. Plan to refinance within 2 years and utilize the appreciation to help securing capital from our other two STR in the area. This is a 50/50 partnership.

Estimated cash flow based on current investments.

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

Previous experience

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

I have done business with the seller previously; he called and gave me first right of refusal to purchase before he put it on the market. Negotiated for seller financing and for the property to come fully furnished, including the hot tub!

How did you finance this deal?

Seller financing with 20% cash down

How did you add value to the deal?

Minor interior improvements, professional photos and better advertising for short term rentals.

What was the outcome?

Property acquired and went live for rent today! Took 24 days from close of escrow to live rental listing, though that could have been shorter had I not been traveling.

Lessons learned? Challenges?

Make sure the seller doesn't have any access to the property as quickly as possible after closing. Sounds obvious, right?

We are using one of the same service providers for the maintenance of the cabin and a few items were removed after COE, which by the letter of the law, is theft.

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

Myself and Joshua Click in Phoenix, AZ

Come network with others taking steps to become financially free and invest in real estate! This year we are going back to the basics, so come join as we share our journey into financial freedom and real estate investing. 

Join us and get an entry for this months book giveaway! 

This location does not serve food, but you are welcome to bring in outside food!

Location is subject to change, depending on continued restrictions in place. Any updates will be sent to all who RSVP, as well as posted here.

Investment Info:

Single-family residence fix & flip investment in Phoenix.

Cash invested: $500

We always share the success stories, but it is good to share that it doesn't always work out.

Property was a probate case after death of sellers father. Indigent estate and all proceeds from home were to pay debts, controlled by the courts. Mortgage & solar loan in arrears and solar lien on property prevented sale at contract price. Solar company demanded appraisal be completed to justify price and would not release solar lien at contract price.

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

Fix and flip deal with experienced partners. I was to bring some cash to the deal, as well as represent the buyer and listing on resale. Potentially a very profitable deal.

Partnering with two agents/investors and a private money lender. I located deal and am the buyers agent representing purchase, and will split the listing 50/50 upon completion! Deal was under contract.

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

A friends father passed away, it was his home. We negotiated based on seller needs and work needed on the property.

How did you finance this deal?

Plan was to use private money loan for purchase (which had been secured) and personal cash for rehab

How did you add value to the deal?

Found deal, cash and representation.
Plan was to invest $500 earnest money and $5,000-$10,000 as gap funding for repairs

What was the outcome?

Deal fell through. Property was a probate case after the death of the sellers father. Estate was indigent and all proceeds from home were to pay any possible debts, controlled by the courts. Mortgage and solar loan in arrears and solar lien on property prevented the sale at the contract price. Solar company demanded an appraisal to be completed to justify price and would not release solar lien at contract price. Appraised price/us paying off the solar would not make this a favorable deal.

Lessons learned? Challenges?

Don't get solar!

Our challenge was working with the collections agency, who didn't communicate well, and being stuck between the seller, the sellers lawyer and the collections agency. Without raising purchase price, there was not much we could've done to save this deal.

Not necessarily something we learned from this deal, but always a good reminder, not everything will go smooth, not all deals will work out. Don't let it stop you from pursuing your next investment opportunity!!

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

Me!

Investment Info:

Single-family residence fix & flip investment in Phoenix.

Cash invested: $500

Fix and flip project that did not pan out. We always share the success stories, but it is good to share that it doesn't always work out.

Original plan: Partnering with two agents/investors and a private money lender. I located deal and am the buyers agent representing purchase, investing $500 earnest money and $5,000-$10,000 as gap funding for repairs and will split the listing 50/50 upon completion! Deal was under contract.

Hard stop: Property was a probate case after the death of the sellers father. Estate was indigent and all proceeds from home were to pay any possible debts, controlled by the courts. Mortgage and solar loan in arrears and solar lien on property prevented the sale at the contract price. Solar company demanded an appraisal to be completed to justify price and would not release solar lien at contract price. Appraised price would not make this a favorable deal.

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

Fix and flip deal with experienced partners. I was to bring some cash to the deal, as well as represent the buyer and listing on resale. Potentially a very profitable deal.

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

A friends father passed away, it was his home. We negotiated based on seller needs and work needed on the property.

How did you finance this deal?

Plan was to use private money loan for purchase (which had been secured) and personal cash for rehab

How did you add value to the deal?

Cash and representation.

What was the outcome?

Deal fell through. Property was a probate case after the death of the sellers father. Estate was indigent and all proceeds from home were to pay any possible debts, controlled by the courts. Mortgage and solar loan in arrears and solar lien on property prevented the sale at the contract price. Solar company demanded an appraisal to be completed to justify price and would not release solar lien at contract price. Appraised price/us paying off the solar would not make this a favorable deal.

Lessons learned? Challenges?

Don't get solar!

Our challenge was working with the collections agency, who didn't communicate well, and being stuck between the seller, the sellers lawyer and the collections agency. Without raising purchase price, there was not much we could've done to save this deal.

Not necessarily something we learned from this deal, but always a good reminder, not everything will go smooth, not all deals will work out. Don't let it stop you from pursuing your next investment opportunity!!

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

Me!

@Caleb Wood absolutely! Bring him with!

@Caleb Wood we are excited to have you! No need to be nervous, we are a laid back group who gets together to chat about financial ideas and common goals! Looking forward to meeting you!

Come network with others taking steps to become financially free and invest in real estate! We are taking it Back to the Basics this month as we launch a new year and share our vision for FREEdM and how you can be a part of it!

This location does not serve food, but there is a food truck scheduled for that night! 

Location is subject to change, depending on continued restrictions in place. Any updates will be sent to all who RSVP, as well as posted here.