All Forum Posts by: Larry Lee

Investment Info:

Townhouse fix & flip investment in Fairfield Glade.

Purchase price: $165,000
Cash invested: $95,000
Sale price: $375,000

We found this home on the MLS. The owners inherited the property out of state,and were tired of paying the HOA dues. After running comps on the property we decided to do high end finishes on the home. The rehab took around 120 days, and we subbed out the work ourselves.
We are very excited with the end product. It went live on the MLS today!

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

Our real estate agent let us know that Townhomes were really popular in the area as a retirement community. The residents liked the idea of no outside maintenance.

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

On the MLS. We negotiated after getting an inspection on the property. We got an estimate to fix some of the unexpected cost found in the inspection and we cut the cost in half with the owner. It knocked about an extra $10k off the deal.

How did you finance this deal?

Local Bank. 12 month interest only at 4.99%

Lessons learned? Challenges?

If it is possible know what agent you are going to list the property with and build a close relationship.we talked with our agent a lot during the rehab and got her personal opinion on some colors and choices. She really owned the rehab and took pride in picking certain things out. I believe when a sales professional believes in a product they will sell it with conviction,and the customers will feel their excitement in the home.

Are you lending him the money? (ex. cash, retirement fund, HELOC on personal property)

Or are you going to a lender to finance the purchase of the home?

Partnerships can be really tricky, especially with people you do not know personally.  

I believe it can be very advantageous as well, if done the right way.  

Investment Info:

Single-family residence fix & flip investment in Crossville.

Purchase price: $122,000
Cash invested: $60,000

We were determined to get our first flip home under contract during the closure of our company due to Covid 19. After putting in only 10-15 offers we got the home under contract on 5/9/20. We close on 5/29 and I will post pictures and the progress of the flip.

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

I want to do a couple fix and flip deals to build connections with gc's and subs.

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

It was a for sale by owner deal. I found it driving around our market after work one day. We originally put in an offer about 45 days prior in which the seller did not counter. I keep a calendar of every offer that we put it and we typically come back to it in 45-60 days. We did that on this deal and made another offer, at that time the seller finally countered and we were able to work out a deal.

How did you finance this deal?

We used a local bank and set up a 12 month interest only loan.

How did you add value to the deal?

TBD

What was the outcome?

TBD

Lessons learned? Challenges?

TBD

View report

*This link comes directly from our calculators, based on information input by the member who posted.

What is your go to for estimating costs for rehab?  I know a lot of you make offers through pictures and in other cities and that is my case here.  Trying to get some best practices on estimating costs without viewing the home.  

This home is 1800 sq ft and built in 1976.  With new appliances and a full update could we get the repair expenses under $30k?
I am checking to see when the last time the roof was done, but not including that into the $30k. 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

The home is a 3br 2ba with 1,644 square feet.  I feel confident in the ARV as my agent pulled comps.  I have never rehabbed a home with mold and I am trying to get an idea of how much I might be looking at.  Thanks for looking! 

We are moving from buying turn-key rentals into buying renovation projects.  I am hoping to make connections with some local contractors.  We are placing several offers per week on possible flips, and we want to build relationships with some contractors in the area.  Feel free to write me a message on here, and I will give you my contact info.

Thanks!

Thanks for all the help and tips!

I'll keep you posted!

@James Canoy yeah it’s on the desktop. When you finish the calculations it will give you the option to share on the forum. 

The only way I could get it on the forum is just post the link. You should be able to copy and paste it into the web browser and it will pop up. 

@Dennis M. I added the link with the new calculations.  Do the expenses look appropriate now?  Thanks for all your help