All Forum Posts by: Jodi Terrell

@Eric Piccione is this a multi-family property? 

I think so! We were shocked because it sold with FHA financing the year before for almost $100k! Normally they don't take that big of a hit during the first round of auctions. I guess you never know!

Investment Info:

Single-family residence fix & flip investment in Glencoe.

Purchase price: $88,000
Cash invested: $60,000
Sale price: $190,000

This was a tricky deal that pushed us to our limits! A local wholesaler brought us the deal with an ask of $98,000. We knew this was too much but I still saw potential to make money. I knew the wholesaler had his fee built in to the price and I also knew that he wanted to flip a house more than anything! But, we didn't want to tie up the purchase price plus the renovation costs because of other opportunities we had in the pipeline. My solution was to ask the wholesaler to partner with us and help us convince the owner to "joint venture" with us on the project. The wholesaler had it under contract for $83,000 so we met with the owner and offered him $88,000 if he would give us 6 months to complete the renovations and procure a sale. After a little back and forth and the help of an experienced attorney, we were all in agreement!

The house was a wreck! They hadn't lived there in almost two years and the house was seriously neglected. There had been a septic back-up in the basement, an active critter infestation and a swimming pool with more tadpoles than the Mississippi River!

Our original budget was $50,000 but 2 days into demo we found massive termite damage that pushed us to $60,000. The house had been under a bond for almost 20 years but it was a "re-treat bond" not a "replacement bond". Basically pointless!

I lined up a buyer almost immediately and we ended up customizing the house to their specifications which turned out ok, but be sure to get things in writing, especially add-ons.

Even though this deal almost killed us and we didn't make quite as much as I had hoped, it turned out to be one of my favorite renovations!

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

It was a way to invest a smaller amount of cash so we could continue to pursue other deals.

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

Wholesaler ^^ See above for more details!

How did you finance this deal?

We joint ventured with the owner and then paid cash for the renovations.

How did you add value to the deal?

We basically gutted the house! Opened up walls, totally reconfigured the master suite, added lots of custom details like contemporary railing made from pipes, built-ins, concrete counters, antique pantry door and we made it a true 4 bedroom by adding a closet to one of the bonus rooms in the basement.

What was the outcome?

After a grueling 4 months in the middle of an Alabama summer, we netted right at $30,000 and the wholesaler netted around $10,000

Lessons learned? Challenges?

Just because it looks easy on Pinterest, doesn't mean it's easy in real life! (i.e., Handrails made with pipes!) Also, custom details can pay big dividends. We "pre-sold" this house so I took design risks that I normally wouldn't have. In the end, the house was amazing and it appraised for $20,000 more than we sold it for. Even though we left some money on the table, I was happy to deliver a "dream home" to a family that I love dearly!

Investment Info:

Single-family residence fix & flip investment in Glencoe.

Purchase price: $63,000
Cash invested: $10,000
Sale price: $100,000

Single family home with 3 bedrooms, 2 baths, hardwood floors on a great street!

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

It was a great deal! The house had sold the year before for $98,000!

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

We found this deal driving for dollars. I spoke to the neighbor and found out it was a divorce situation and they had abandoned the house. A few months later, it was available for purchase on hudsonandmarshall.com. I was the high bidder when the online auction ended but the reserve had not been met. The next day, I received a counter offer $300 higher than my bid! I was shocked!!

How did you finance this deal?

Cash

How did you add value to the deal?

The biggest expense was replacing the central heat and air. Other than that, we painted, replaced both bathroom vanities and a couple of light fixtures!

What was the outcome?

We made about $25,000 with very little effort!

Lessons learned? Challenges?

Start placing bids because you never know what they're willing to take!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $75,124
Cash invested: $35,000
Sale price: $147,000

This house was a foreclosure with roof damage from a tornado. We made an aggressive all cash offer which gave us a competetive edge against the other bidders. The majority of the expenses went to roof repairs, cleaning up the yard (downed trees), and we had to totally rebuild the chimney! Overall it was a good project with a nice profit at the end.

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

It was a solid house in a high demand area with a nice profit margin.

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

We found this deal on MLS. Because it was a "hot" listing, I knew we probably only had one shot at an offer and I also knew there were going to be multiple offers. We bid well over list ($59,600) because it would still yield high profits. In situations where we may only get one chance to bid, I like to end in an odd number. Sellers (especially if it's a foreclosure) will generally take the higher offer even if it's only a few dollars more.

How did you finance this deal?

Cash

How did you add value to the deal?

We made the necessary repairs due to storm damage, updated countertops, appliances, painted throughout and added some custom features like shiplap walls and built-ins for the mudroom.

What was the outcome?

We walked away with almost $35,000!

Lessons learned? Challenges?

If you are renovating a house during the rainy months, get the outside work done as soon as possible. When we first started this project, the weather was pretty nice. By the time we decided to move outside, the rain started and didn't stop for weeks! We were delayed almost a month because of the weather!

Thanks!

Thanks @michael le! 

The names I mentioned are some of the largest syndicators in the country. I've been on the broker side of several transactions and have years of management experience. The part I'm most concerned about is the actual syndication process (SEC guidelines, etc) and that's the piece that most podcasters, books, conferences, etc., don't really dive into. I'm sure it's because of the fear of liability in generalities. This type of investing isn't one that Im comfortable diving into without a full grasp of the ins and outs. 

I've been researching several coaching/mentor programs for multifamily but would love to hear from someone with first hand experience. 

Is it worth the money? Who do you recommend? I've looked into Joe Fairless, Michael Blank and Rod Khlief but I'm not sold on anyone (obviously). 

Thanks for your input!