All Forum Posts by: Kara Beckmann

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $450,000
Cash invested: $89,530
Sale price: $643,000

I purchased this house from my local wholesaler within the first 5 min of seeing it for the first time. There were other investors on their way to look at the property, and I knew this was s good deal. It was as 7 day close. I financed this deal with my own cash as well as private investors. This was a full remodel including major landscape and pool update in the backyard that took 6 weeks. It is now a beautifully updated home while still maintaining the original character of the home.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $450,000
Cash invested: $89,530
Sale price: $643,000

This deal was brought to me by the same wholesaler who sold me my last property. He knew my credentials for a fix & flip in this neighborhood, and knew this fit my criteria. I purchased this house within the first 5 min of seeing it for the first time. There were other investors on their way to look at the property, and I knew this was s good deal. It was as 7 day close. I financed this deal with my own cash as well as private investors. This was a full remodel including major landscape and pool update in the backyard that took 6 weeks. It is now a beautifully updated home while still maintaining the original character of the home. It is currently on the market to sell, however I may choose to keep this as a short term rental property.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $450,000
Cash invested: $89,530

This deal was brought to me by the same wholesaler who sold me my last property. He knew my credentials for a fix & flip in this neighborhood, and knew this fit my criteria. I purchased this house within the first 5 min of seeing it for the first time. I financed this deal with my own cash as well as private investors. This was a full remodel that took 6 weeks. It is now a beautifully updated home while still maintaining the original character of the home.

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

I was interested in this home because I have renovated and sold 5 other properties in this zip code. The numbers made sense and there were only a few structural changes that I had to make. I also knew that there were easily multiple exit strategies with this deal. I could fix and flip it or hold it for a long or short term rental property.

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

A local wholesaler brought this deal to me. It was a 7 day close and there was no negation. It was an as-is sale and no inspection period. This house was way below market value in an established neighborhood.

How did you finance this deal?

I financed this deal with my own cash (used my money from my flip that closed one week before this deal) as well as private money.

How did you add value to the deal?

I added value to this deal by completely renovating this home from top to bottom. The exterior was updated with new smooth stucco for a modern update and the backyard was completely transformed. The pool needed a full update as well. We removed two load barring walls to create an open concept and relocated ducts to the roof to eliminate soffits. All bathrooms as well as the kitchen received all new everything! A new roof, water heater, and some windows needed to be replaced as well.

What was the outcome?

The house shows beautifully and we still were able to keep some of the original charm of the home. This house is on the market now, however this would also be a great rental property. It is very close to a number of great locations in the Scottsdale area!

Lessons learned? Challenges?

I was not expecting to completely renovate the pool as extensively as I did. The pool company did a horrible job patching the new suction lines on the side of the pool so I had to re-plaster and tile to cover their work. I was only expecting one wall to be load-bearing during my original walk-thru and the wall that I did not realize was load barring required a very large beam that lead to us having to open another wall to support the beam. Due to these items we went over budget by $10,000.00

Thank you so much @Andrew Syrios!

Investment Info:

Single-family residence fix & flip investment in Scottsdale.

Purchase price: $364,900
Cash invested: $86,000
Sale price: $569,000

I was very nervous to move forward with this deal as it was my first wholesale deal and everything had to move very quickly. I had to make a decision on the spot as other investors were looking at the property and I knew someone was walking home with that contract that day. I ended up making a 30% cash on cash return and sold the house full ask only holding the house for exactly 3 months. This was my best deal to date.

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

I knew this neighborhood well as I just sold a house in this neighborhood and I got the highest comp at the time. I also flipped another house near this deal that you could see from this backyard and two more houses a few blocks away. I knew the numbers well, and I knew what I could sell this house for.

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

I received an email from a wholesaler on a Saturday night with the zip code in the subject line. It was the zip code that made me open the email. I responded right away and scheduled to see it the next day. There were about 7 other investors look at the house on Sunday and I knew someone was going to go home with the contract. There was no negotiation on price, however I ran the numbers, and even worst case scenario was a great profit.

How did you finance this deal?

I was incredibly nervous as there was no inspection period, $10,000 non-refundable deposit and a 12 day close, but I knew the numbers made sense! As much as I wanted this house after running the numbers, the problem was that I didn't have the cash...yet! I knew my last flip was scheduled to close in 10 days so I was betting on that going smooth. I took all of the cash from my last flip, along with private money to fund the deal and rehab with cash.

How did you add value to the deal?

It was a complete gut job and it needed a new roof. I updated everything and my theme was a "Modern Spanish" style that went over incredibly well with the potential buyers. The total renovation was $85,000.

What was the outcome?

The house went under contract in 3 days at full ask! I had a full ask back up offer on day 5. I was able to price the house higher than what I expected when I first purchased the house because comps had continued to go up! I made a 30% profit and was incredibly thankful with how the remodel turned out.

Lessons learned? Challenges?

It is important to run and know your numbers and not just depend on the wholesalers numbers. I knew that my renovation would be more expensive than what the wholesaler was calculating. He was estimating about $46,000 for the renovation I came in at $85,000... big difference however I also knew that the ARV was higher than he was calculating since I had sold a number of houses in this zip code.

Investment Info:

Single-family residence fix & flip investment in Scottsdale.

Purchase price: $364,900
Cash invested: $86,000
Sale price: $569,000

I was the most nervous that I had been when I did this deal, and it was my best profit yet! This was my first wholesale deal and I had to make a decision on the spot as other investors were looking at the property and I knew someone was walking home with that contract that day. No inspection period, $10,000 non-refundable deposit and 12 day close. I was not used to these terms but the numbers made sense every way that I calculated it. I ended up making a 30% cash on cash return and sold the house full ask only holding the house for exactly 3 months. This was my best deal to date.

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

I knew this neighborhood well as I just sold a house in this neighborhood and I got the highest comp at the time. I also flipped another house near this deal that you could see from this backyard. I knew the numbers well, and I knew what I could sell this house for.

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

I received an email from a wholesaler on a Saturday night with the zip code in the subject line. It was the zip code that made me open the email. I responded right away and scheduled to see it the next day. There were about 7 other investors look at the house on Sunday and I knew someone was going to go home with the contract. There was no negotiation on price, however I ran the numbers, and even worst case scenario was a great profit.

How did you finance this deal?

As much as I wanted this house after running the numbers, the problem was that I didn't have the cash...yet! I wasn't going to let that stop me. I knew my last flip was scheduled to close in 10 days so I was betting on that going smooth. I took all of the cash from my last flip, along with private money to fund the deal and rehab with cash.

How did you add value to the deal?

It was a complete gut job and it needed a new roof. I updated everything and my theme was a "Modern Spanish" style that went over incredibly well with the potential buyers. The total renovation was $85,000.

What was the outcome?

The house went under contract in 3 days at full ask! I had a full ask back up offer on day 5. I was able to price the house higher than what I expected when I first purchased the house because comps had continued to go up! I made a 30% profit and was incredibly thankful with how the remodel turned out.

Lessons learned? Challenges?

It is important to run and know your numbers and not just depend on the wholesalers numbers. I knew that my renovation would be more expensive than what the wholesaler was calculating. He was estimating about $46,000 for the renovation I came in at $85,000... big difference however I also knew that the ARV was higher than he was calculating since I had sold a number of houses in this zip code.

@Greg Dickerson Good to know that restaurants can sometime pay more than local retail or office tenants. I spoke to someone in my local area today who has a lot of experience bringing national tenants to a space, including the tenants who I would be going after for this building. Possibly thinking of bringing them in as a partner since they could possibly help with the funding and bringing the tenants. Seems like a win-win?

Thank you again!

@Joel Owens, 

Thank you for the response. For this property,  the sellers would also be selling their permitted renderings of the complete exterior remodel - not a tear down. The new renderings give an entirely different look to the building including raising the roof, and dividing the building into two with one of the tenants having a 2,800sqft drive thru end cap. 

With this location, I would prefer to go after more recognizable national tenants. This definitely isn't a "cheap" deal, however what is the best way to find out if it really is a "good deal" without having tenants in place?

@Greg Dickerson, 

Thank you for taking the time to reply with such useful information. 

In your experience, do you think the restaurant industry can be a good investment or would your stick with retail/office or multi family? 

If you do think the restaurant industry can be a good deal, how would you go about contacting national restaurant chains to be potential tenants. One of the reasons I see this as such great deal is because of the location and other national chains in very close proximity - McDonalds, Target, Starbucks, Taco Bell, Costco and Five Guys. 

Thank you again, 

Kara

@Angela Hollis Hi There! I have tenants renting now who's lease will end on August 1. I have not placed tenants yet for 2019/2020 school year. Please feel free to private message me!