All Forum Posts by: Kalim Kalla

Canton Cosmetic flip- This was a home we found for an investor that presented the opportunity for a cosmetic flip. Investor took a bit long to do what should have been a 2 month rehab. Nonetheless initially had our eyes set on a 165k ARV. Home is currently pending for $219,000

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

Nice spread with upside on ARV for a cosmetic flip

What was the outcome?

Sweet net profit for our investor that rehabbed the property.

4 Votes

Investment Info:

Single-family residence fix & flip investment in Marietta.

Purchase price: $148,000
Cash invested: $186,000

Contributors:
Christopher Mannella, Stone Bettersworth, Clay Corley, Mitchell Kramer, Adam Polokoff

Awesome deal Put under contract and wholesaled to one of our investors invested all cash and crushed the rehab. Listed active for 8 days at $275,000. Presents a solid net profit in a pocket of Marietta located super close to schools highways and entertainment. Small but charming home flipped in this hot market.

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

Enough Spread for an investor to flip.

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

reverse engineered what cost I needed it for in order to make a wholesale fee and leave enough meat on the bone for an investor to take home a healthy profit on the flip.

How did you finance this deal?

Investor used all cash for the purchase and rehab.

How did you add value to the deal?

I found the deal and created the vision for my investor after vetting the rehab and Comps.

What was the outcome?

Successful flip for my investor

4 Votes

Following

0 Votes

Atlanta, Georgia

One thing that I would consider in your analysis (and if I am incorrect I am open to correction) The 1% rule is mean to be 1% of the all in amount when you buy a BRRRR type deal. So even if you spend 140k to purchase and rehab a home and it appraises for 175k when you go for the refinance, to achieve the 1% rule you would need $1,400 in rent not $1,750. Hope this helps.

1 Vote

Woah that is a good looking home for the price and all in amount. Super curious since I am not too familiar with the area and want to confirm numbers to calculate some of your actual returns.

PP- 36k

Rehab- 11k + Unforseen- ?

Rent-?

Total Loan amount at what rate-?

0 Votes

RESICAP, Starwood Capital, BLV, Opendoor, Offerpad, Tiber, Cerberus to name a few. Some are buyers not HF's but still buy here and there.

2 Votes

One of my biggest Struggles in todays climate is the fact that when I find a really nicely rehabbed home or flipped deal. I find that investor and usually give them a call. On a larger scale say 100 investors a week, with the intention of building a relationship based on the quality of work they have done. I am super selective with who I choose to do business in that I only work with serious investors that do quality rehabs. Nonetheless I give them a very professional and cordial call simply to introduce myself and I constantly get hit with " I do not want to sell my property", " im not selling that property", or " I already sold that property".

Why does it have to be an assumption that I am looking to buy their property? I have no intention of calling them to buy their property at all. This is only happening as of recent. Every investor I call and reference a property to is a property that has already been rehabbed really well. You would think that if wholesalers were actually trying to do business they would not be calling homes that have already been rehabbed. I have only recently seen this market shift by investors being extremely rude on the phone when my intentions are nothing but pure and have nothing to do with buying their property. I simply want to complement them on their work and see if they are currently in the market for flip deals in order to cultivate a relationship to do future business.

Is this a wholesaler problem? Are Investors just cold after a lot of unprofessional work by wholesalers being rude?

Any input would help cultivate a valuable discussion between wholesalers/investors.

0 Votes

I would aim to find completed projects that flippers or for that matter any industry you are curious about have done in the recent past to get a realistic grasp on what it takes, how they closed the deal, Hard Money, areas they look out for and the types of jobs that can be expected- cosmetic, full guts, additions. The value will be in the numbers expected vs what was actually achieved in real time.

1 Vote

Originally posted by @Mel Park:

Originally posted by @John Powell:

@Mel Park 2.5% is a little low on the appreciation. Rents and expenses seem to be inline with the Kennesaw Area. I think inflation is here to stay for a few years. I’m looking for properties that are in the path of progress, have numbers similar to what you are talking about but can also be used as short term rentals to significantly increase the income during the hold period and hopefully significantly out preform the market on the appreciation side too.

Thanks for chiming John. I'm also hoping my 2.5% appreciation is a tad low. If I take out extremes -- such as the 2008 crash, or this Covid skyrocket..... it still seems that 3.5-5% was and is realistic. I see millennials - despite what we were told wanting homes - seriously wanting homes wanting them. I feel many will have student debt, other expenses, and homes under 300k are a great match for them. Also I look at new people coming to America. I can say with 100% certainty - home ownership is high on their list. That, plus population increases in areas like Atlanta...heck, 2.5% is basically inflation. I'd love to be surprised down the road in a good way.

I want to devote a tiny part of my portfolio to speculation - no different than stocks. I want to figure out - whether its Raleigh or Atlanta....areas where there's *nothing* ....but in 5-7 years, the development will start. My first company was in Woodbridge, VA in 1999 the town was known for pawn shops, body shops, 7-11s, graffiti. Now - there's a Wegmans, an Apple Store. Cripes, I can't even say 'Apple of Woodbridge' without grinning because I still remember how it used to be. Small houses were 80K in those days. Then - in 2010 I finally had money to invest - but I figured I missed the boat because those houses were at 200k. Well -- now those 200K'ers - are at 300K.

Houses are the first priority, my bread and butter if you will. But I'd love find a promising area, and buy some residential lots or even commercial, and just know that those funds don't exist for me for awhile.

Hey Mel, Based on this response I think you will find solid growth opportunities in some pockets inside the perimeter of Atlanta and one of my favorite areas for longer growth as you mentioned in VA would be Acworth, Canton, and those areas further N-OTP. These areas are seeing rapid growth and have a lot more land for the communities to grow. Inside the perimeter some of my favorite areas are 30318, 30311.

I focus on distressed deals and one of the things I do help my investors understand is that if you are doing a 40-50k rehab on a property, there shouldn't be any reason for you to spend 3k a year on maintenance or so. Nonetheless the conservative approach is definitely better but might not be super realistic for all deals and could end up killing your numbers in some situations putting you off from great cash flowing and CoC return deals.

2 Votes

All Forum Posts by: Kalim Kalla

Kalim Kalla has started 30 posts and replied 96 times.

Post: Stone Mountain Cash Cow

Post: Canton Cosmetic Flip

Post: Marietta Flip In the Books

Post: Investing in REO/Bank Owned in GA

Post: A couple of rookie questions

Post: First BRRRR Deal in Columbus, GA

Post: Does anyone have List of Hedgefunds in Georgia?

Post: What it's like being a wholesaler

Post: Greater Atlanta Real Estate Market

Post: Please see - - my ROI seems low - -but real ?