All Forum Posts by: Keith Grayson

You can contact the Arizona Registrars of Contractors. They can investigate this and point you in the right direction.

I recently obtained my KB1 GC License that allows for Commercial and Residential Construction. My focus is on multi family renovations and new development in Maricopa County, Arizona. If you have any projects that require a licensed GC, I would love to see if I can help.

I am also the Broker-Owner of Grayson and Grayson and an active investor in multi family properties in Phoenix. My approach to bidding projects takes into account market rents in the area and maximizing returns for your clients.

Investment Info:

Single-family residence fix & flip investment in Phoenix.

Purchase price: $365,000
Sale price: $585,000

Shut down three times by the city based on neighborhood complaints that were completely unfounded

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

Huge margin from the purchase of $365,000 to close at $585,000

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

Wholesale deal with 9 other offers, and I beat them all in a race tot title with the EMD

How did you finance this deal?

Private Money Loan

How did you add value to the deal?

Cosmetic remodel and expanded the Master Bath

What was the outcome?

Multiple offers on day 1

Lessons learned? Challenges?

Don't trust anything they say at the Phoenix Residential Permit desk

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

Me

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Phoenix.

Purchase price: $115,000
Cash invested: $90,000
Sale price: $322,500

The Seller nor the agent ever we went to the property and listed it as a single family home. I drove it and discovered that it was zoned multi-family. It had a separate guest house that I partitioned off to turn it into a duplex. There was a total of 4 units after the conversion. Gross rents were $3,000 per month, and the new buyer kept me on as the property manager at 8%.

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

Margins in multi-family flips are much higher than SFR.

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

MLS
Listed at $139,000 for 18 DOM.
Offered $100,000. Seller countered at $115,000, and I accepted.

How did you finance this deal?

Private money loan

How did you add value to the deal?

Added a unit by dividing a large two bedroom into 2 studios.

What was the outcome?

Sold for $80,000 profit and retained property management agreement with new owner.

Lessons learned? Challenges?

Doubled budget due to delays with plumbing and foundation issues.

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

Me

Located just blocks from Downtown Phoenix, Chase Field, Talking Stick Arena, and Comerica Theatre, this charming multi-family property brings in $2,900 per month and $34,800 for a 10% CAP. The property has been fully remodeled with a new roof, new HVAC, high efficiency mini-splits on the rear units, fresh paint and stucco, new plumbing lines and electric. All kitchens include gray shaker cabinets, all appliances, and new counter tops. Unit 1 is a two bedroom home that rents for $1,100 per month, Units 2/3 are studios that go for $500 each, and Unit 4 is a one bedroom that rents for $800 per month. All leases are month to month and professionally managed. Deposits are held with Broker and transfer upon sale.

@Cynthia Andersen - I am a property manager in Phoenix, and I own a 4-plex and a 5-plex that are currently undergoing renovations. The 4-plex will be finished first and will rent for $2,900 per month. My asking price will be $315,000. The 5-plex is going to take a minute because it is a fire property. PM me if interested.

Video

I linked my video above to see what y'all think. It was done in the spirit of Biggerpockets for an open source of renovation info. I have my vendors' contact info and am including my margins as well. My question is, do y'all think I am an idiot for putting too much info out? I plan on breaking down my financing, vendor selection process, and how I find the properties in the future. I guess it is not anything unlike what is being done here, but my clients and family think that I am insane.

My investor has offered me 100% financing, including a commission for myself, at 10% interest, a 1% prepayment penalty, and a 2 year balloon. I am currently using these terms on my renovations. Most of my transactions are structured with a $25,000 commission as well (I am a Broker) that covers are large portion of the repairs. 

My question is, do you think it would be wise to invest in multi-family units with the same terms? I am looking to purchase several 4-plexes and/or a 5-12 unit property. Just looking for advice on private money financing on rental properties as a whole, I guess.

Property is occupied with a February 28th closing date/move out date. Do not disturb current tenant. Can close later if needed. Property has newer roof, A/C, hardwood floors, and interior paint. Needs an updated kitchen and some drywall repairs. Call Keith Grayson at 602-418-2950 for more information. Additional photos upon request. Comps are below. 

ARV = $325,000

Active

$340,000 - 1314 W Marshall Avenue, Phoenix, AZ 85013

$379,000 - 5620 N 11th Avenue, Phoenix, AZ 85013

$365,000 - 5327 N 8th Avenue, Phoenix, AZ 85013

Under Contract

$364,000 - 1147 W Georgia Avenue, Phoenix, AZ 85013

$315,000 - 535 W Georgia Avenue, Phoenix, AZ 85013

Closed

$350,000 - 5632 N 13th Drive, Phoenix, AZ 85013

$345,000 - 1126 W Orange Drive, Phoenix, AZ 85013

$329,900 - 1327 W Vermont Avenue, Phoenix, AZ 85013

Video walk-through linked below. Seller is motivated and looking to move it immediately. The asking price is $599,000 and the ARV is $775,000. Cosmetic issues are all that are needed. 4 bedroom, 4 bath, and nearly 4,000 square feet. Plantation shutters, multiple fireplaces, granite countertops, custom cabinets, custom wood doors, and an oversized 3 car garage.

2353 E Cheryl from Antik Media on Vimeo.