All Forum Posts by: Jordan Messick

Thanks for the reply. My initial question was cut off. That was - how do you experienced investors recommend getting these deals under contract? Do you just put in a offer sight unseen with a contingency in place to protect yourselves? Most properties imconsidering are <$150k and fit the BRRR or fix and flip mold.

Yes, I am able to make cash offers with private money. I haven't used hard money  lenders yet but have started talking to some.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $196,000
Cash invested: $7,000

Prior to being introduced to the forum, I unknowingly house hacked my first/current property. I used an FHA to only put 3.5% down. Rented out rooms which has covered the mortgage. Now have $100k+ in equity and have opened a HELOC to use for investment properties. My plan is to find private money for the purchase price of BRRR or Fix and Flips and then use my line for the upfits. I also may transition my house hack into a BRRR if I choose to move into the next house and rent this one instead.

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

This was really out of necessity. I wanted to build equity in a house rather then throwing money away in rent. I didnt want to pay all of the mortgage so I rented out the two spare rooms which ended up covering nearly the entire mortgage.

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

I found this house through zillow believe it or not. It was out of my price range when it was initially posted. I continuously checked back and the same day that I saw a substantial price reduction, I made my offer.

How did you finance this deal?

FHA requiring only 3.5% down with the seller covering closing cost.

How did you add value to the deal?

I have done a lot of remodeling through out the house including updating kitchen, adding wainscoting to dining room, added a 900 sqft deck, updated bathrooms, updated light fixtures throughout.

What was the outcome?

New appraisal was done for my HELOC and came in at $270K.

Lessons learned? Challenges?

Lesson learned is that you can create wealth through real estate and I would like to find and actively pursue investment deals now.

I am newer to real estate investing and am building up my network to try and find off market deals. Until then, I am trying to purchase through keeping a close eye on the MLS. The problem is every good deal is under contract in under 12-24 hours for my area - Wilmington, NC. I walked a property today and by the time I ran my calculations on it, it was already under contract after being listed for <16 hours. How do you experienced investors recommend getting a property under contract with this issue? Do you just make an offer sight unseen with a contingency to give you a way out? Most properties I am looking at are <$150,000 that would fit the BRRR or Fix and Flip model.

Second question, how would you recommend making multiple offers in these situations?  I want to go in with a low cash offer, decent conventional bank loan offer, and higher seller finance offer.  Do you advise having my real estate agent verbally make these to the seller and then we put whichever in writing they prefer?  

Thanks for any input!