All Forum Posts by: Joy Hagerty

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $63,000
Cash invested: $32,000
Sale price: $138,000

converted the garage into additional living space. added a new half bath. basically a new house with new roof, new kitchen and bath, new windows. and we did a cute landscape..

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

good neighborhood

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

kind of fell on my lap- no one else wanted it

How did you finance this deal?

LOC

How did you add value to the deal?

add a half bath in the hall way, converted the garage into additional living space

What was the outcome?

sold

Lessons learned? Challenges?

working with a different city inspector from the last flip, different cities have different rules. this one is not very friendly at all. that delayed my process

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

my agent is the broker i work for now. I do have a few lenders that I like to work with

@Chris Seveney, thanks for your information. we are just getting started on the CFD. read your input. I have found a title company that has an attorney can do that.

my problem is where we are, there is no bank willing to do Escrow.  my title company said i will collect directly from the buyer.  would that be ok?

thanks

Ken Hagerty

Thanks Matthew.  This is very helpful.  Will talk to the bank next.  Yes, we are definitely going to get all the ducks in a roll first.

We have enough funds in our self-directed Ira to buy the Lots but we will need to I have construction loans. And also we would want to keep the apartment in the self-directed ira if possible. Anyone can direct us to strategize this the best way? Should we do phases of construction or do all in for 32 units?   We have been in the acquisition mode. This is our first build project.  Thank you.  

Investment Info:

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

Purchase price: $25,000
Cash invested: $90,000
Sale price: $179,500

we have been in SFR rental for a while. built and sold two spec houses. flipped my first one as indicated above, bought a fixer upper and turned to a VRBO, bought 4 duplex. now closing on a 49 unit Self Storage unit with 4 storefronts.

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

I am a learner and I like all things Real Estate.

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

it was presented at a local REI meeting. I figured it was a teardown - and i needed to have room for margin of error. also our market appreciation helped by the time i am done with the flip, the price went up another 20K.

How did you finance this deal?

self financed plus LOC

How did you add value to the deal?

added square footage

What was the outcome?

close to 50K in profit on the first flip

Lessons learned? Challenges?

hire out the job to seperate experts

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

Capital Abstract Title, Larry Kelly Real Estate Broker

I have a contract on a 49 unit self-storage building plus a 4 unit commercial storefront.  but it is 3 hours away from me. what would be the best strategy to manage this.  there are a residential house and apartment/workshop on site. I can hire a manager and offer room and board.  but I don't know what is a good practice to get this started.

It is currently vacant as I am getting it from the bank.  but should not have a problem getting them rented out as I have just the desired size or rental in the market.  If I decide to sell it, what is the valuation practice, and timing as to holding period?

The rental income should be at $6,000 a month fully rented.  if you apply 85% rule, that will be $5,100.  Purchase price is 250K.  should I hold on to it since it is 3 hours away?

thank you

Ken / Joy

I found a house for sale by owner like the interior remodeling. overlooked the damage caused by the foundation issues existed. I made a low ball (i thought) cash offer. Location is good. But cracked driveway and garage floor needs immediate attention, cost 10k. I want to terminate the contract. Seller is ok but wants in writing. How should i best approach the termination letter? What kind of verbage should i use or avoid? We had a simple Fsbo contract i downloaded. . Gives permission to terminate the contract within 10 days under the earnest money clause. Thanks for saving my rear in advance. Ken

i am interested in this property.  i am in Bentonville.  let me know how we can get in touch

guys, thank you for your input.  i married the two ideas and went for a lower purchase price.  the cash flow does work, and hope to be able to get rid of the bad tenants as time goes on - they are currently on a yearly lease

i am negotiating an offer to buy a duplex for 288K.  cash flow is 3000 a month.  but the tenants all have large pets that are destroying the place.  there is deferred maintenance including roof replacement. this is in a turning neighborhood.  still not quite safe but used to be really bad.  should I proceed still or back out?

the last buyer bought it for 232K 7 month ago. he did minimum repair or update to half the units