All Forum Posts by: Jordan Archer

@Alex Bekeza After I changed the carpets and painted the walls and ceilings there was still a noticeable smell. However, someone made an offer on it before I had to go any further. I did call some duct cleaning companies, which would have been my last resort.

Cogo charged me 2 points for this flip, and on a flip I'm currently working on.

Investment Info:

Single-family residence fix & flip investment in Port Saint Lucie.

Purchase price: $166,000
Cash invested: $15,000
Sale price: $238,000

Port Saint Lucie, FL - Fix/Flip.

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

I'm a realtor, but got in to real estate primarily for buy/hold with flips as my way of funding.

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

Probate mail. I always offer people 2 options; 1. They can list at full retail; 2. they can take a 70% retail offer if they need the money quickly. They chose the latter.

How did you finance this deal?

I had to scrape together the down payment using a small loan with Marcus and Millinchap; they were able to give me 22k. Once I had the downpayment I used Cogo Capital (hard money) for a 90% financed purchase.

How did you add value to the deal?

I bought with 30% equity, so there was already value. Additionally, I changed the carpet/retiled and painted to get rid of the smoke smell.

What was the outcome?

Bought for 166k, sold for 238k. I was very surprised to see how high the holding costs were though. I only had the property for 4 months and ended up paying roughly 40k in repair, holding and financing costs all together...ouch

Lessons learned? Challenges?

You need to wait 3 months after purchasing a flip to be able to resell to an FHA buyer.

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

Cogo Capital was good along with Marcus and Millinchap if you need down payment help.
I was the realtor involved in selling the property...I'd recommend him too.

@Samuel Glantz Thanks, I'll look in to that. Is that offered in conventional?

@Philip Arthurs

@Philip Arthurs Yes I did think about that and wondered if it would be considered loan fraud. Thank you for your advice.

@Alex Gaeta

@Alex Gaeta I'm not a doctor, but thanks for telling me about it. I never heard of a doctor's loan before.

@David Fernandez

@David Fernandez That's pretty much what I'm looking for. Does your bank finance repairs? Does your bank lend if the property has deferred maintenance? What rates are you looking at?

Investment Info:

Single-family residence fix & flip investment in Fort Pierce.

Purchase price: $150,000
Cash invested: $30,237
Sale price: $210,000

First Fix/Flip (Late to upload, finished in 9/2017)

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

I'm always looking for properties that have flip/buyandhold potential. I love the idea of building my income quickly with flips and investing the profits in buyandhold. Since I'm a realtor, the profits from a flip crush the profit from commission.

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

I market to probate properties, and end up listing most of them. Every once in a while someone wants to dump it.

How did you finance this deal?

I partnered with my parents on this one. I could have partnered with some hard money lenders in my area, so it was a win/win not paying the high interest and points, while sharing the profits with my family.

How did you add value to the deal?

-I found and negotiated the deal, and got it under contract.
-I determined all numbers (ie. purchase, selling, labor/repairs)
-I managed/coordinated/hired all repair work.
-My wife and I put in some sweat equity trying to save in areas where we could. (ie. painting, cleaning, etc.)
-I was the listing agent for the property saving on commissions. (I actually ended up double siding this property, which significantly lowered our costs)

What was the outcome?

- 30k in profits split between my parents and my wife/myself.
- Experience on our first flip

Lessons learned? Challenges?

A severe hurricane hit 2 weeks before closing, and we had to scramble to find hurricane shutters. We just replaced the roof so we had our fingers crossed nothing would go wrong...luckily, only the fence was blown down and it didn't effect the closing. Pfewww

We also learned that working with family has its ups and downs (not going in to detail on this one...)

Other than that, we got an insight on what it's like to work on a flip yourself (not very fun!) I would have hired people to do the work

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

Most of the professional services were kept in house. The other people involved in the deal I really haven't used since, so SORRY BUT I DON'T!

@Kyle Calvin What kind of loan did you use? I'm selling a home that rehabbed that has very similar numbers to yours, and I still had to do 10% down.

Thanks for the feedback @Wayne Brooks

@Sam Shueh

Thanks for your reply. I understand I will have to pay closing costs regardless, but it's the downpayment that I want to get around. This will definitely be an investment property, so the loan would be conventional, not FHA or VA.

I want to know if a conventional lender would ever do a Zero downpayment loan if the Loan to Value was low enough? 

For example: If I have a 100k (as-is value) property under contract for 50k, so 50% LTV, would a conventional lender ever waive the down payment requirement due to the amount of equity in the property?

Has anyone had this happen?

Hello BP,

I have wholesaled 10 SFR and MFR properties in South Florida. I also own and manage 3 rental units.

I'm looking to build capitol for the acquisition of a 10 - 30 unit apartment complex, with an approximate COC return of 10 - 20%

Any and all property management would be handled by me, so you're investment would be completely passive. I am also affiliated with the NRT Property Frameworks property management team, and have a list of qualified referrals.

Due to the property size, I expect I'll require at least $200k for the downpayment on an 80%LTVloan...depending on how much I can get the seller to carry back.

I'm pursuing markets with great job growth, and stable economic situations. Also, the properties that I consider will be ones where I'll have the opportunity to force appreciation through minor renovation and increased rents; the properties will already have equity when they're purchased. Further, I am only considering properties that can be acquired at CAP rates higher than market average.

I've gained some momentum identifying properties of this nature through pocket listings brokers have sent me from West Palm Beach. I'm continuing to build relations with brokers in other cities as well.

Let me know if you or your affiliates are interested in working with me on a future project.

Thanks,

Jordan Redar

772-577-0084

Hello BP,

I have wholesaled 10 SFR and MFR properties in South Florida. I also own and manage 3 rental units.

I'm looking to build capitol for the acquisition of a 10 - 30 unit apartment complex, with an approximate COC return of 10 - 20%

Any and all property management would be handled by me, so you're investment would be completely passive. I am also affiliated with the NRT Property Frameworks property management team, and have a list of qualified referrals.

Due to the property size, I expect I'll require at least $200k for the downpayment on an 80%LTVloan...depending on how much I can get the seller to carry back.

I'm pursuing markets with great job growth, and stable economic situations. Also, the properties that I consider will be ones where I'll have the opportunity to force appreciation through minor renovation and increased rents; the properties will already have equity when they're purchased. Further, I am only considering properties that can be acquired at CAP rates higher than market average.

I've gained some momentum identifying properties of this nature through pocket listings brokers have sent me from West Palm Beach. I'm continuing to build relations with brokers in other cities as well.

Let me know if you or your affiliates are interested in working with me on a future project.

Thanks,

Jordan Redar

772-577-0084