All Forum Posts by: Jason Knight

@Mark White I say find a city that you can afford and build a team there. If you're doing a traditional 25% down buy and hold, you can be $0 to $13K only out of pocket and be cash flowing in a lot of cities.

@Kyle Keller As a buyer: they are wanting too much commission. 

However, there must be market incentive for them ask for so much commission, otherwise they would ask less.

You add that we're in a hot market and I think you end up with a lot of wholesale deals that are similar to MLS. Doesn't matter to me where I find a deal. I just think but a lot of buyers with FOMO and limited supply is creating a bubble in the wholesale market, which would ideally have less of a bubble since investors should be dispassionate.

Thanks @Jason Crittenden. One complete three more in the works!

@Kyle Keller, I'm getting those leads through my agent. Next step is to get those deals flowing to me more directly. Recently the wholesale deals have been equivalent to MLS, so I think the wholesalers or FOMO buyers need to chill out.

Exciting news that you're getting started Craig. Here's my recommended order for starting out:

1. Find a city that has a great ROI without too many headaches/1.5 Choose your strategy.

2. Find an agent in that city who is also and investor. Ask for an MLS feed.

3. Find a cash flowing property/build the rest of your team.

4. Get more cash and repeat.

I definitely recommend one agent per city due to greater potential for wholesaler's deals. You need an agent to properly/legally complete a real estate sale.

Investment Info:

Single-family residence buy & hold investment in Cleveland.

Purchase price: $39,900
Cash invested: $29,205

1st BRRRR deal with 3K left in the deal for 45% ROI, 30K forced equity. Not too shabby for first BRRRR.

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

I like the idea of taking an unlivable house and making it rentable! The ability to get most of my cash back and still cash flow plus equity is pretty sweet.

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

Found through a turnkey provider after about a month of looking at deals. There wasn't much room for negotiation since wholesaler, agent/turnkey wanted their piece.

How did you finance this deal?

This was all cash.

How did you add value to the deal?

Redid bathrooms, kitchens, cleared city violations, refinished the hardwood.

What was the outcome?

30K forced equity, $200 cashflow, 3K left in after cashout refi.

Lessons learned? Challenges?

I would like to improve my networking with wholesalers. I have two more BRRRRs in process, so I am now working with agent and contractor to save cost (no more turnkey).

Hi Shannon. It depends on how much work you want to put in. BRRRR improves the velocity of your money and you can hopefully get most/all of that money out. More traditional investing is less work. I have two new construction properties where I put a lot down, but they take almost none of my time. Having said that, I am planning my BRRRR strategy now because it's better for equity and building a portfolio.