All Forum Posts by: Jonathan Bonck

@Garrett Diegel Most important thing I learned it to have an EXCELLENT TEAM. I work full time in a corporate job. Im thankful to have lots of help when it came to inspecting, closing, rehabbing, and now leasing it out. Build your team. 

I would prefer something that didn't take 6 weeks to finish. That's a lot of holding cost. 

@Malik Roley I found it on the MLS through HAR. It was listed for $50K. But I made an offer for $42K. Then after inspection I renegotiated back down to $40K.

@Tristan S. Thanks! I walked the property with my GC. He name is Eric Newman. Runs a construction company called "salt and light construction". Search and you can find more on google. We had a good bit of equity in this house. We initally thought $30K but ended up at $35K. But becuase it had so much equity Ill stil be able to refi with no issues.

@Chuck Webb I completely understand. It took be 2-3 months of looking and making offers to find one I could actually use the BRRRR strategy on. Keep looking!!

This is our first full rehab. We are trying to use the BRRRR strategy. So far we have bought, rehab, and its on the market for renting. Then we will refinance after 6 months and repeat!!

This is in the Southeast area of Houston, TX. 10 mins from where the Houston Texans play at NRG stadium and 10 mins from the University of Houston.

We found this property on the MLS and were able to make a low offer and negotiate further until we got the right purchase price.

We raised $75K from a close relative with a promissory note of 10% annualized interest, which will only be 5% after refinancing in 6 months.

It took 6.5 weeks to rehab. Everything was completely remodeled.

This was a 3 bed, 1 full, 1 half. We turned it into a 5 bed, 1 full, 1 bath. Turned formal dinning room into a bedroom because this market area is not a formal dining room market. Then the back room was massive and we split it into two rooms an added closets. 

Purchase Price: $40K

Rehab: $35K

ARV: $110K

Rent: $1400/month

Cash flow: $450/month

If we cash out refi at 6 months we should be able to pull out $82,500 to pay back the principal and interest on the private capital we raised. 

Cash flow is after saving for all expenses ( capex, maintenance, vacancy, insurance, etc.)

Pics below:

@Daniel Sisto you are spot on with my thinking. I want the wholesale leads because this are the best deals. When a wholesaler brings me a deal he is taking a piece of the equity pie that I could use to execute my strategy, which is use private capital to buy rehab rent and then refinance. The payout the wholesaler gets takes away from my ability to fully refinance all the private capital principle. 

@Christopher Smith Yes, I was planning to use SEO to get the page in front of folks. Facebook Ads and Google Ad words possibly.

I think there is phone systems where you can have voicemail's that prospective sellers leave and it translates to an email. This would help me manage while being at work full time. 

I'm a Buy and Hold investor. I want to create a lead generation page to start marketing to sellers. I want to stay focused on buying and holding. I do NOT want to become a wholesaler. I have a full time job and I am trying to stay focused on building my portfolio. How have other buy and hold investors handled the influx of leads through lead generation (albeit direct mail, lead generation website, seo) but not become wholesalers?

thanks! 

@Michael Finkelshteyn I wasn't able to beat that price. I got the same type of policy for $730.

I have a real estate friend who referred me to http://hiallc.com/

Hotchkiss Insurance. 

@Jorge Avalos I think @Thomas Franklin and @John Van Uytven gave excellent advice. House hack with FHA is what I would do at 20 yrs old. I like the idea of find a nice fourplex. They have some on TC Jester North of the 610 loop. Nice area. For the liability I will look into opening a $1MM Umbrella policy to increase liability coverage along with having an extensive insurance policy on the asset itself.

Anyone know of a reputable Insurance company/agent that could write a Vacant Construction Polity/Builder's Risk coverage for a renovation then after the renovation move that policy into a Landlord policy? I am rehabbing a house for 6 weeks then moving in new tenants. Thanks!

Hey @Travis Glenn I use Jim Mortensen on all of my properties and even my primary residence. He is very detailed and will even complete a walk though with you. He has multiple investors that he inspects for. PM me for his information.