All Forum Posts by: Jose Bernard

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $270,000
Cash invested: $89,264.00
Sale price: $399,000

Single Family Flip in desirable neighborhood, 3 bedrooms, 2 bathrooms, and a partially finished basement. Rehab cost $54,565.00, holding costs $10,249.00, and $24,453.00 in selling closing costs. It was a cash purchase. The purchase price and rehab were paid with private investors' capital.

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

The price we were able to negotiate. Also, it was a in very desirable neighborhood with very little inventory.

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

Off market through a Facebook group. The owner had passed away and the owner's children were thinking of listing the property, but they wanted to sell right away. The listing agent who was a friend of the family asked them if they were open to working with a cash buyer investor who can buy the house without contingencies and close in two weeks. We met and negotiated a price that was fair for all parties. Now, I also have a great relationship with this agent as well.

How did you finance this deal?

Through private investors. Regular people who trust me and trusted the numbers on the investment, who were looking for a better return on their money than what they were getting at the bank.

How did you add value to the deal?

We rehabbed the property, updated the kitchen, bathrooms, new boiler, new electrical service panel, and added a French drain system.

What was the outcome?

The property went under contract in the first week $10k over asking, and we closed a month and a half after.

Lessons learned? Challenges?

There was an empty lot next door in which they started construction 2 weeks after. I thought this was going to hurt the sell, thankfully it didn't. Also, the previous owner had a deck which had been on the next-door lot property line. We found this out after we had repaired the deck and added a new fence. These all had to be taken down and redone, increasing rehab cost.Two big lessons: 1. doing more due diligence when buying a property with an empty lot next door. 2. contingency budgets are key

 Hey @Scott E. I'm flattered you think I used chat GPT on this post haha. It was actually my own writing. I don't post as much here, but I was having this conversation with someone and the individual saw value in my points. Therefore, I decided to put it out there for anyone who might find it valuable as well. 

My latest house is flip is currently under contract and closing in 2 weeks. House flipping is not a core strategy in my business as I only do 2 to 3 house flips a year and focus more on buy and holds. House flipping offers several advantages. Firstly, it allows investors to make quick profits, providing a lucrative opportunity. Additionally, house flipping grants individuals control over the entire process, enabling them to tailor renovations to meet buyer needs, and it offers networking opportunities within the real estate industry. However, it is crucial to be aware of the risks involved. Unforeseen expenses can reduce profits significantly, necessitating thorough property inspections before purchase. Despite its potential for profit, novice flippers must avoid common mistakes, such as underestimating costs, not having a contingency budget in place, not planning for potential market shifts, not having different exit strategies. and not accounting for holding cost and capital gain taxes when analyzing a deal. If you have never done a house flip, it is important to consider all these factors when considering investing in one.

 Hi Beena, I sent you a request to connect and a message with a few questions on the area. Thanks in advance. 

Hello, I'm a small multifamily investor in Connecticut with 38 units. I'm trying to scale up to larger assets in the 20-to-50-unit range. I have not found anything that pencils out in my market. Recently, I was brought a potential 48-unit deal in Birmingham, Alabama. However, I don't know much about the market. I'm doing my due diligence now and trying to connect with any investors or agents with experience in the market, who might have knowledge of the market's cap rates, vacancy rates, economics, growth trajectory and overall knowledge of the different areas and neighborhoods. 

Thank you in advance.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $255,000
Cash invested: $350,000

This is a 4plex. It was a cash purchase and financed by a combination of private lenders and a business line of credit. It's a BRRRR project. The purchase price was 255k, it needs about 80k in rehab, and the ARV is 465k.

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

The deal had great potential for a cash flowing BRRR project, and it was in my market where i already owned several multifamily properties.

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

The deal was on the MLS. I had a relationship already established with the listing agent, which helped a lot in getting the deal negotiated and closed.

How did you finance this deal?

The purchase price plus closing cost was financed by private lenders, and the rehab in being financed by a business line of credit.

How did you add value to the deal?

Each unit needs to be cosmetically rehab. In addition, I'm able to add one additional bedroom to 3 of the 4 units unit by updated the layout.

What was the outcome?

Currently one unit has been completed and we are starting on second unit.

Lessons learned? Challenges?

The inherited tenants are being turned over the units gets completed. I time it so as one unit goes on the market; we are turning over the next unit. I had to implement cash for keys for one unit, another unit there was an eviction court ordered already in place, and the other unit was vacant.

 Thanks!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $147,000
Cash invested: $24,000
Sale price: $260,000

single Family flip financed with 0 of my own money.

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

It was a good neighborhood, and it had a great lay out as a 3 bed 1.5 bath for someone's first home.

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

The property was acquired off market through a wholesaler who I had done several deals with in the past.

How did you finance this deal?

It was purchased cash; two separate business lines of credit were used to finance the purchased and rehab cost without having to use my own money. Total holding cost was roughly 8k (between the lines of credit interest, utilities and taxes while holding the property), and total selling cost was roughly 18k.

How did you add value to the deal?

This is a cosmetic rehab. New flooring, new paint, new appliances, and some upgrades to the exterior porch and rear deck.

What was the outcome?

Profit was roughly 60k on this flip project.

 Thank you @Bruce Woodruff. I couldn't agree more. 

 Thank you, Kyle. Yes, the learning and growth from that experience has served me well in other business endeavors and specially in my real estate investing journey.