All Forum Posts by: Jean Torchon

@Matthew Porcaro thanks

Hey @Brandon Rush closed on Sept 19th. Moved in on November 15th. Rented the 1st floor by December 1st.

@Jack Fernandes

Hey Jack, Great question. I’m in the middle of this exact transaction. The commission can be negotiated by both brokers. And either be credited off the sale price, Or you would get a regular commission check for the agreed upon split. The advantage of being a broker on the seller side is your only paying a buyers agent commission. Long story short. Becoming a broker can potentially save you 2.5%-6%. Per transaction. Hope this helps

@Vincent Chan Hey Thanks for reaching out. If your on BP then your already in the right direction. So the property in question was a HUD foreclosure. So it was once backed by a government loan and the previous owner had to let it go. When that inventory hits the market its usually found on www.hudhomestore.com. Because its a hud home, the Seller which is the government is not only looking for owner occupants using conventional or FHA rehab loans, they ENCOURAGE it!!! And give them priority over non occupied Investors

Secondly, the best way to overcome any fears and get comfortable is by running the numbers and surrounding yourself with a team of experienced professionals. Im a licensed realtor in Fairfield and New Haven County in CT. If your ever looking to invest in my market it would be my pleasure to provide you with my network and services. PM me anytime you want to set up a call or conference. 

Investment Info:

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

Purchase price: $192,000
Cash invested: $16,000

My first Real Estate Transaction. Used an FHA 203k loan to BRRR a two family in Fairfield County. Yielding me 50k in Equity and no mortgage payment after refinancing

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

Leaving my parents home I vowed never to pay rent. Fell upon " The Ultimate Beginners Guide to Real Estate Investing" and was hooked from there.

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

Found this deal on Realtor.com then had my realtor place on offer on hudhomestore.com. I agreed to pay all the closing cost in order to win the bid.

How did you finance this deal?

FHA 203k Financing

How did you add value to the deal?

Did a 57k rehab, including 2 kitchens and 2 baths, also converted the heating from oil to gas.

What was the outcome?

After a year I was able to refinance out of the FHA loan into a lower rate while almost eliminating the PMI. Making it possible for me to house hack an live for free to this day.

Lessons learned? Challenges?

Because this was my first deal, I didn't know how good i had it. But it was all a learning experience.

Investment Info:

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

Purchase price: $90,000
Cash invested: $40,000

Duplex acquired through city tax auction. Purchased at $90k with $110k in rehab work Financed with hard money. ARV appraisal came in @ 285k. Refinancing at 75% LTV. Will be able to cashflow $900-$1000 a month when complete

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

As a local realtor I have first hand experience on how hard it is finding deals on the market. I started focusing on off market deals and thats what lead me to city/town auctions.

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

Judicial website is gold for finding deals. because it was an auction with leans, i had my attorney negotiate the larger leans in order to clear title

How did you finance this deal?

Financed through Lima One Capitol using hard money

How did you add value to the deal?

added and additional bedroom and bath to both units, added parking, and finished the basement.

What was the outcome?

Currently 85% done with the rehab.

Lessons learned? Challenges?

Finding the right contractor is a monster if its own. The state of Connecticut has zero regulation when it comes to who can become a licensed GC. I had to fire my first contractor for not paying the subs.

Hey Angelica! hope your project ended well. Just curious which bank was able to provide a fix and flip line of credit? And how favorable were the terms? 

Did a 203k loan in Shelton for my first investment property. Best decision I've made thus far, the key is having a great 203k consultant to guide you. Find a distressed multi-unit  property in a great neighborhood. Instant Equity 

this is a great

Thank you for all your great responses. I wish you all great success and hopefully I can be a great help to all as well, sooner than later. God Bless