All Forum Posts by: Jean Paul Castellanos

Hey Fili, good question, of course, my partner made good money from this investment, he recovers 100% of his investment when the property sales he takes back the 153K invested plus 48.5K from the house + 57.5K from the land in net profit.

I walk away with the same amount. In the end, we both end up with over 100K in each of our pockets.

Hope that clears out everything for you!

Thats correct Scott, the land is 10,000 square feet and the house is 1000 square feet with 3 bedrooms and 1 bath.

Thank you my friend, I wish you the best of luck in your endeavors!

Hey Nik, 

Thanks for clearing that out for me!!

That sounds like a great deal, did you buy the property at a great discount?

Indeed our situation is very similar, the original plan was to demolish the house and build an 8 unit building, however, I moved forward with keeping the house to flip it and dividing the property into two lots. Fortunately, The zoning of this property is decent and allows me to build 4 units on the 5000 sqft vacant lot.

If I do not find a better investment for the $120K from the lot, I will definitely build a fourplex and hold it for a decent cash-flow, equity, and appreciation.

I'd like to see how your deal goes, it seems fantastic, I truly wish you all the best buddy!

Please read, I apologize if I was not clear enough. House is 1000 Sqft, Land 10,000 Sqft, however, I believe it is kind of obvious though. 

Hey guys, so I want to share my experience with you guys, I hope it inspires many of you who are starting out. 

I am from Venezuela and moved into the U.S only 11 months ago at the age of 21, as soon as I arrived I started learning Real Estate, I am an Engineer so numbers are my thing, so after a few months of hardcore preparation, I obtained my Real Estate License and quickly applied my knowledge and tools to Real Estate Investing.

I found this deal after several weeks of nonstop door-knocking in Miami, it was hundreds of doors knocked and rejections before I was able to find this hidden gem.

This property was in pre-foreclosure status when I found it.

Here is how the deal went down:

Purchase Price: $99,800 + Closing Cost: $3200

Rehab: $50,000 

ARV: $250,000

Description: 3/1 SFH in OK condition in a fast growing area in Miami, full interior rehab was done. several comps of similar properties in the area have sold between $230,000-$280,000 price range. The property will be listed for $250,000

Bonus: Property is 10,000 SqFt and is currently being split into two 5000 SqFt lots, giving me a 5000 SqFt vacant land which sells for $120,000 (Cash offer is on the table waiting for the county to finish the lot split.)

Cash Invested in the deal: $153,000

Brought in a Partner to put most of the cash in the deal and split profits 50/50.

Net Profits: $90,000 (Fix-&-Flip) + $115,000 (Vacant Land) = $205,000.

Consistency is everything. It is painful at first but I promise you it will pay off!

"Success isn't always about greatness. It's about consistency. Consistent hard work leads to success. Greatness will come. "

-Dwayne Johnson

I wish the best to all of you and hope this experience inspires you, I will share my experience with you guys soon, stay tuned, great things to come!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $99,800
Cash invested: $150,000

Purchase Price: $99,800 + $3200 Closing cost = $103,000

Rehab: $50,000

ARV: $250,000

Description: The property is 10,000 SqFt, has a 3/1 SFH, located in a fast growing area in Miami.

Even though just the fix-and-flip nets near $100,000, the property is being split into two separate lots, leaving me with a vacant 5000 SqFt lot which sells for $120,000.

Total Investment: $150,000

Total Net Profit: $205,000

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

Profitability

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

Several weeks of nonstop door-knocking.

How did you finance this deal?

Cash. I Brought a partner to the deal.

How did you add value to the deal?

Full interior rehab.

What was the outcome?

Great experience and great profits netting over $200,000.

Lessons learned? Challenges?

Consistency is everything. It was after hundreds of doors knocked and rejections until I found this hidden gem.

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

I am an Investor & Licensed Real Estate Agent, I work together with clients who want to invest and search for deals like this all over Miami.

This information is still very valuable 9 years later, Thanks!

Hey guys,

I'm new to Biggerpockets, Just wanted to reach out and introduce myself.

 My name is Jean Paul Castellanos. I arrived from Venezuela 8 months ago and since then I've dedicated myself to learn Real Estate.

I am 22 years old and I'm an Industrial Engineer and currently an IoT (Internet of things) Engineering Student at Florida International University, 2 months ago I obtained my Real Estate License here in the state of Florida after working as an assistant for several months to gain experience and knowledge in the field, specifically in the Short-Sale/Foreclosure area.

I've been building my credit since I arrived and filled my taxes, fortunately, I was able to qualify for a conventional loan for an amazing property here in Miami, I would love to hear about your opinion regarding this deal I've picked up to start off my Real Estate Investing Journey.

The property is located in the fast-growing area of Wynwood-Allappatah and has a huge lot of 10,000 SqFt with a 3 Bedroom 2 Bathroom house in "ok" condition that needs an update but could easily rent for $1800-$2000.

The property zoning is T4, which allows an 8 unit multifamily of 2 bedrooms and 1 bath each unit.

I picked up the deal after a few months of negotiating and hard work for $115,000.

Comps run in the range of $300,000 - $280,000 for updated properties with lot sizes of 5000 SqFt or less.

I've received offers for $230,000 and $250,000 AS-IS, but I'm planning to update the property (Rehab cost $30,000). Divide the property into 2 different folios,  sell the house in the price range between $250,000-$280,000, keep half of the property which would be 5000 SqFt of land and prepare a 4 unit development project to build, hold and rent for cash flow.

A 5000 SqFt lot zoned T4 for 4 units in the area is valued around $125,000-$150,000 (could be more).

 So far I believe this is the best way to structure this deal but I'm open to hearing different opinions and ideas to make this even better. It will be very much appreciated.

Scenario #2: Is to build the 8 unit building which will generate amazing cash flow. I do not have a credit history that would allow me to fund that development project yet, but I'm more than willing to partner up and make this happen. I have already structured the estimated building cost and projected income and expenses for the 8 unit building.

See you guys around and let me know what you think!

Your opinion is very important.