All Forum Posts by: Jeremy Bourgeois

Investment Info:

Mobile home fix & flip investment.

Purchase price: $45,000
Cash invested: $48,000

Purchased this mobile home for $45,000, as-is value is $150,000. We will put about $2,000 into cosmetic updates and plan to resell it for $160,000-$175,000

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

The numbers were incredible

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

It was a FSBO that we negotiated with the seller

How did you finance this deal?

Cash

How did you add value to the deal?

We will be doing paint and floors as well as a few very minor repairs

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $100,000

Purchased this cash flowing rental property with $0 down. My partner funded the entire purchase price, and we are about to refinance at the market value, allowing him to get all his cash back with a profit and allowing me to buy the house with no money down. It cash flows $100 a month after all expenses.

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

It is in a great area and already cash flowing, and I locked in a good discount on the deal

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

I found it cold calling and negotiated it directly with the seller

How did you finance this deal?

Partner financed the original purchase price, we refinanced using a DSCR loan with no money down from my end.

How did you add value to the deal?

Quick and easy deal for the seller, I am adding a new roof soon as well as making some other minor updates around the property.

What was the outcome?

Added a cash flowing asset in a great area to my portfolio with no money down

Lessons learned? Challenges?

Your lender can be one of the biggest assets on your team. If you find one who is smart and hard working and who knows how to structure creative deals, it will be incredibly beneficial to keep them on your team.

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

Christian Duncan (lender)

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $360,000
Cash invested: $18,000

A partner brought this deal to me. We bailed the previous owners out of foreclosure and refinanced the house. It is rented and cash flowing with tenants. We also were able to take over the property with 20% of equity built into the deal, and it is newly renovated. We plan to hold this asset for 3-5 years.

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

Partner brought me in on the deal to help manage and finance it.

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

He found it through his network and we negotiated it directly with the owners and their hard money lender.

How did you finance this deal?

Took over the hard money loan, caught up the payments, and refinanced into a DSCR loan

How did you add value to the deal?

We prevented the foreclosure, allowing the tenants to stay and the borrower to exit the deal with having that on his record. We also made a deal with the second position lender to get some of his invested capital back which would've been completely lost in the foreclosure process.

What was the outcome?

We now have a cash flowing asset with $60k in equity built in, in a great neighborhood in Houston

Lessons learned? Challenges?

There are plenty of creative ways to avoid some of the worst case scenarios in real estate like foreclosure. Have good connections to potential partners helps you close many more deals.

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

Christian Duncan (lender and partner)

Investment Info:

Large multi-family (5+ units) wholesale investment.

Purchase price: $2,800,000
Cash invested: $10,000
Sale price: $2,900,000

Got in touch with the sellers of a 20 unit apartment complex and Logan. After months of negotiating, we finally agreed on a price at $2.8 million. I then assigned and sold the contract for $2.9 million and made a $100,000 assignment fee.

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

Always wanted to learn more about multifamily deals

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

Cold calling, negotiated with the seller.

How did you finance this deal?

The buyer used a DSCR loan

How did you add value to the deal?

The seller actually paid less in fees to sell the property off-market. (6% of $2.8 million would be $168k) He also got a quick and easy sale, and the buyer locked in a solid discount on the deal as it had recently appraised at $3.75 million

What was the outcome?

Buyer got a good cash flowing portfolio, and the seller was able to liquidate this inherited asset.

Lessons learned? Challenges?

Large assignment fees are easier to negotiate on bigger ticket properties as the numbers generally are just bigger.

Investment Info:

Large multi-family (5+ units) wholesale investment in Central City.

Purchase price: $325,000
Sale price: $365,000

Wholesaled this 9 house portfolio on creative finance terms to the end buyer. Buyer put down $125k plus $40k assignment fee for the 9 houses. Sellers are carrying the note for 5 years at 5% interest. The ARV on the entire portfolio is well above $1,000,000 and almost all units are rented to long term tenants.

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

My partner brought in this deal and we had investors looking for this kind of deal.

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

Partner referred it to me, and we negotiated directly with the sellers

How did you finance this deal?

The buyer had the deal seller financed to him

How did you add value to the deal?

Connected the buyer and the seller to get a smooth and easy transaction.

What was the outcome?

The sellers liquidated their portfolio, the buyer got a great deal, and my partner and I got a nice assignment fee.

Lessons learned? Challenges?

Oklahoma doesn't allow for contract assignments, so we had to do a "referral fee" instead. Each state has different laws that need to be researched especially if you are planning to wholesale there.

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

True Title and Escrow for title work

Investment Info:

Single-family residence wholesale investment.

Purchase price: $550,000
Cash invested: $1,000
Sale price: $565,000

Joint ventured with another wholesaler in Northern Utah to get this deal done. We each made $7,500 on the deal

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

Marketing campaigns brought in the deal

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

The seller found our website and we negotiated directly with him

How did you finance this deal?

The buyer used hard money

How did you add value to the deal?

We got the seller a quick and easy sale, while adding a profitable deal to the end buyer's portfolio

What was the outcome?

$15,000 total assignment fee, buyer is flipping the house

Lessons learned? Challenges?

Sometimes it is easier to split the profits and JV with someone if they can bring a valuable skill set to the table.

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

Property Sellwise

Investment Info:

Other fix & flip investment.

Purchase price: $6,000
Cash invested: $8,200

Infill lot flip. The value on these lots are $15,000-$20,000 each

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

The numbers

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

Cold calling, negotiated directly with the seller

How did you finance this deal?

Cash

How did you add value to the deal?

I didn't. We simply listed the lots as-is.

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

Braden Anderson (real estate agent)

Investment Info:

Other fix & flip investment.

Purchase price: $10,000
Cash invested: $10,000

Land flip. Purchased a buildable infill lot for $10,000 in an HOA, with similar lots going for $30,000+. I have the land listed and hope to sell it for $35,000.

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

Found it through my marketing efforts, and I wanted to do more land deals.

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

Cold calling, negotiated directly with the sellers.

How did you finance this deal?

Cash

How did you add value to the deal?

I did nothing to the lot. I immediately listed it as-is, ready to be built on.

Investment Info:

Single-family residence wholesale investment.

Purchase price: $100,000
Cash invested: $1,000
Sale price: $115,000

My partner and I found this property on Zillow listed much higher than the value. It had been sitting on the market for a long time and the sellers were willing to drop the price significantly. It was listed for $170,000 and we got it under contract for $100,000 then sold the contract for $115,000

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

My partner was looking nationwide for wholesale deals

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

On Zillow, we negotiated with the agent

How did you finance this deal?

Cash

How did you add value to the deal?

We got the price to a much more reasonable amount, allowing the seller to finally sell it, and passing on a good deal to the end buyer

What was the outcome?

The property was assigned, and the buyer is now flipping it.

Lessons learned? Challenges?

Virtual wholesaling can be difficult. It takes many calls to get a deal under contract. Finding buyers in smaller markets is also challenging.

 Yeah that is the tough part, this deal is in a market I haven't been in before. In that situation, would you just try to find someone trustworthy enough to give you a referral fee say, instead of a formal contract assignment and have them just write up the offer so you aren't tied to it?