All Forum Posts by: Jarred Black

Im looking to get some advice on a deal I have. I'm not sure if my plan is even possible so I would appreciate any feedback.

I have a well kept 3bed 1bath 950sf single family home under contract for 16K with an out-of-town seller. Instead of wholesaling it, I'm actually wanting to purchase the property because its in such good condition and it rents for 600-650. The house does need a new hot water heater, outdoor A/C unit, stove, refrigerator, carpet and paint, and some cosmetic upgrades = $3500-4000. I already have a qualified tenant that wants to live there. I was thinking of entering into a bond for deed or lease option with the seller, then sub-leasing the home to my tenant. I would use the rent to pay my seller and collect the cashflow. After a year, I would be in a much better position to finance the property and purchase it from the seller while keeping my tenants in place.

I would initially propose the same 16K sale price, 350-400/mo rent (considering the necessary repairs I will need to make) and 100% of rents going towards the sale price. (I understand this will be negotiated with the seller and I) Once I have a signed lease (option), I would then make the necessary upgrades and sublease it to my tenant for atleast a year. After that year, I would exercise my option to buy and purchase the home for the remaining balance.

I understand this is all subject to the terms I can negotiate with the seller.

I'm looking for any feedback. Are their any holes in my plan or anything I am not accounting for?

Hey Joe,

It was good meeting you at the REIA meeting the other night. I wanted to get your contact info and talk more about your business to see if we can work together since we're in the same area. Like you, I starting out with very small capital. I've done 2 deals myself but I think we both could benefit from working together to dominate this market since you're as motivated as I am.

If you do decide to wholesale the property I do have a few contacts interested in multi-family units. Email me at [email protected] with your info and we can talk more about it.

@Chris Piper comparable houses are selling for $50K-$60K in that area. As far as the numbers I think its a great deal. My buyers may not be looking for this type of property, so I need to keep building my list.

@Mary B. I don't have access to the MLS in my area. According to Zillow theres been 5 homes sold in the area in the past 3 months, 10 homes in the last 4 months. Those numbers don't seem like much but I'm not sure how to judge them.

I've found out that one of the main draw backs is the fact that the home has a flat roof. While there is no evidence of any leaks buyers Ive shown it to dont like flat roofs. The home does have a full basement with no leaks or cracks that should add some tremendous value, but I'm having issues overcoming the flat roof. Maybe I'll have a roofer inspect it and give me an estimate of how many years the roof has left on it. Maybe this will ease a buyers minds

Hello All,

I have a wholesale deal in my area that I think would be a great deal for any landlord buyer. Its a 3bed 1bath home in good condition located in a good neighborhood. I've marketed the deal to my buyers list, I've posted it on Craigslist, Backpage, etc. I've even reached out to other wholesalers and realtors for a buyer, but haven't gotten any real interest. Ive had it under contract almost 2 weeks with a 30 day close.

The after repair value of this home is $45K conservatively, it's last appraisal was at 58K. I'm asking $20K. This means a buyer is literally paying less than .50 cents on the dollar for this property. A smart move for any investor I think

The condition is clean and repairs are minimal around 5K to get it back on the market for rent. It has rented for $550 in the past. At $550/mo. your rent roll will be $3,700/yr. after taxes and insurance. This puts your rate of return at 15% which is higher than average for the area. This property will pay for itself in 7 years. You could even get $600/mo. and raise your rent roll and return even more.

I have a REIA meetup this week where I'll be marketing and following up on my buyers list. I also have an auction to attend where I could potentially find a buyer. I do have a strong contract with contingencies if I have to walk away and I didn't put any money down, but I want to move this property. Maybe my asking price is too high? Maybe I'm missing something.

Any feedback or interest on this would be appreciated.

Jarred

I've only been wholesaling so far. I plan to start rehabbing as soon as I build enough capital. I I've got 2 properties, a duplex and a SFR, under contract for sale now. I'm in need of more buyers looking to invest in the Metro East IL and Greater St. Louis markets.

Hello All,

I'm a wholesaler in the Metro East IL market. I currently have 2 wholesale properties available in Belleville. The first is a 2 story duplex, 2800sf. One side is already occupied generating $650/mo. The other side is fire damaged in need of a complete rehab. I'm asking 28K for it.

The other is a small 3 bed 1 bath single family rental home about 950sf. The condition is clean, but needs a new hot water heater, new A/C unit, new appliances and carpet and paint. It can easily rent for 550 - 600/mo with only 5K-7K worth of repairs. Im asking 19K.

Both properties are in good neighborhoods.

Please feel free to give feedback or reply if you're interested in getting more info on these 2 properties

Thanks,

Hello Everyone,

My name is Jarred. I've been investing as a wholesaler to build capital for a rehabbing business. I'm currently a retail manager and I have 6 yr. old son and a fiance I love. I started my real estate investment business because I don't believe any job will ever pay me what I think I'm worth and I want to secure my family's future.

My company is Capital HomeInvest LLC. I invest in the Metro East IL area and I'm looking to connect with other investors, landlords, and rehabbers.