All Forum Posts by: JD Gunter

@Reed Huddleston Thanks for your response! The $54k is just the cash down. The loan is a standing real estate credit line with a local bank for prime +1. It’s a monthly interest-only payment until I sell, but there is a due on sale clause. Annual renewals on the loan are .5 points on a $250k line guidance. It’s a great line with great terms. I also have a HELOC against my residence for $100k for repairs etc. That’s a prime +.5 rate, but no origination. Both of these lines are small local institutions, which I seem to have the best luck with. My biggest challenge is insufficient capital. My business partner and I have $600k standing credit and cash, but that only enables us to do two deals at a time right now.

I'm a real estate investor and licensed associate broker in Colorado Springs, Colorado. I've been investing in real estate for over ten years locally and decided to broker deals for others this year. We have more deals than I'm able to bankroll on my own.

Most of our opportunities come through our traditional brokerage service. A recent example is someone who was preparing to list their property traditionally, then lost their job and needed to cash out quickly. I was able to make a cash offer that made sense for everyone.

Because the brokerage I work for is well established, we come across a lot of opportunities like that. Currently, we have more deals than capital and are looking for outside buyers we can broker. If you are interested in investing in real estate in the hot Colorado Springs market, I would love to speak with you. Our website for investors is https://circarealestategroup.com/investors/ and my email is [email protected]

I also want to say what an excellent community is available here at Bigger Pockets. I am constantly learning something new. It's a lot of fun to finally find a community that speaks my language. 

Investment Info:

Single-family residence fix & flip investment in Colorado Springs.

Purchase price: $270,000

Cash invested: $54,000

Residential fix-and-flip purchased off market. I'm in the middle of reconditioning. Shooting for an ARV of $330,000

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

The seller was in a bad situation. She had lots of equity but recently lost her job. When she accidentally ran over her well pump, she was done with the property. She contacted me as an investor associated with the brokerage, and we made the numbers work.

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

It's an off-market deal. She came to our brokerage for a traditional listing, then lost her job and needed to cash out quickly.

How did you finance this deal?

Through my standing credit line at a local bank. I use a HELOC for repairs and upgrades.

How did you add value to the deal?

Interestingly, there was a finished bathroom in the unfinished basement. This allowed us to finish the basement for $18k, adding 700 square feet and two bedrooms. We also pulled the polybutylene plumbing throughout the house while the basement was still unfinished.  

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

I'm a licensed broker at The Circa Real Estate Group. My speciality is in finding investments for myself and others.