All Forum Posts by: Kyle Z.

@Tina Gao

Hey Tina, I live in KOP and grew up here. If you have any questions specific to the area feel free to DM me.

@Brian Garrett

https://youtu.be/GwxjqJsWC6o

Watch this

I wanted to take a minute to thank Bigger Pockets and it's community. I recently completed my first BRRRR (except repeat..getting there though). I would never had been able to do it without Bigger Pockets. It was scary from beginning to end, still is a little. But Bigger Pockets and the people who make up the community gave me the confidence, motivation and knowledge to attack this deal and accomplish it. For those that are interested, there is a detailed explanation below.

How I found the deal- I actually stumbled upon the property. I was in the neighborhood to walk through a different property (which I also bought). I decided to walk around a little to get an idea of what the neighborhood was like and about a block down I found a property with a "for sale" sign in the window. I called it immediately, found out it was an REO and surprisingly enough the lady gave me the code to walk through it. There's a lot more to this part of the story but we'll move on

Price and description of Property - 36k - C Neighborhood-  it was triplex (two-2 bedrooms and one- 4 bedroom) and had a big split garage.  the 4 BR was completely rehabbed already the one 2br was 50% done and the other 2bd was down to studs. It needed all new heat, water heaters, and panels. 

Rehab cost- 40k - did as much as I could by myself- skills are limited though. 

Rent Income - $3600/month -  2 of the 3 units are section 8. and renting garage too. 

Refinanced for 90k

In review - had about 80k in the property then refinanced and pulled 90k back out of it and have about a 33% ROI (100% Cash on Cash)

Again, a big thanks to this community! If your a newbie like me, understand that no part of this was easy, there were struggles from beginning to end but if I could just do one of these a year for the next 5 years I could be financially free for the rest of my life. The trick is finding it and when you do, attack it and don't let anything stop you.  

UPDATE!

The seller agreed to do seller financing, we are going to agree on a price so that I can make about 25-30k on the deal and then anything over he will get up to 5k after that we will split it. 

Im going to spend the rest of the day researching deals like this. Does anyone know of any books or articles that go into detail on this subject?

Thank you @Steve Hodgdon, I appreciate your example!  Just to make sure I got this right...

So the agreed price was 110 for purchase then you added 20k as an extra payment for the seller to partner with you? Then you split the profit 50/50 as well, right?  

What type of legal help did you need in this deal, and what was the price to set it up?

HI BP Community 

I need help on structuring this deal! I'll try my best to keep this brief.

 Im trying to buy a property to flip.  I have enough to rehab it but not enough to buy it. The seller has done some investing and was using the house as a rental so I don't think they need the money immediately.  I would like to suggest some type of seller financing but I am not sure which strategy to use.  Does anyone have any suggestions on how I should structure this? Subject to, wraparound? I want to make sure I protect myself and the seller throughout the process.  If anyone knows a good resource where I can research this please let me know. 

Here is the deal specifics if your interested. 

I sent out hand written yellow letters a got a call... it actually works people!

ARV:210-220

Rehab costs: 50k 

Seller said he is looking for 150k. Obviously there is some negotiating that needs to happen here. Im thinking of offering 115 and let him work me up to 120-125.  

Thank you!

Heres a quick run-down of the situation.

My uncle wants to borrow 65k from me (for a flip) from a line of credit I have.  I don't love the idea but I will be away with the military for a couple months so I won't be doing anything with the money anyway.  I explained to him that I would need it back after 3 months and he complied.  I will be paying about 4.5% once taken out.  What are my risks? and how much should I require from him to make it worth my while/ risks? 

first of all, sorry I used my phone to post this so i apologize for all gramatical errors I have a tenent that moved in about 2 months ago and every week she has texted me with a new issue. I don't know what to do because this is my first rental property and i am not sure what my responsibilities are. Also how can i limit these non-issue calls? heres the list if your interested lightbulb out- when she moved in it was out and. i told her i would fix it and i forgot so this was on me door trim was cracked- non-issue, and was like that when she moved in but i fixed it anyway because it was splintering and could had been a safety hazard she said it was infested with bugs- this i think was BS but I exterminated anyways because the place had beenvvacant for some months before she was there she said she was hearing animals in the walls- i called an exterminator. he laid traps and ive heard nothing about it since leak outside - it was where the sump pump dumed neighborhood is too noisy- sorry this is a row home neighborhood... people are close. call the cops if it gets excessive toilet is leaking- brand new toilet havnt looked into yet but Im calling BS

Thank you all for the advice. There has been a lot of ideas here that I had not thought of. I appreciate it!!!

@Kyle J.

Thank you for your input. That sounds awful.  It probably chewed the bottom of the door because it was trying to get to the other side. Unfortunately , I've seen and gone through that before.  But that is part of my worry.