All Forum Posts by: Larry Lemer

Investment Info:

Single-family residence fix & flip investment in Marietta.

Purchase price: $153,000
Cash invested: $68,000
Sale price: $285,000

Fix and flip. Rehab outside and inside. New kitchen, bathrooms, finish basement.

Investment Info:

Single-family residence fix & flip investment in Atlanta.

Purchase price: $300,000
Cash invested: $300,000

Buy a property in a growing market and rehab by taking the property to the foundation and building it back as a two story 4 bedroom 3 bath house.

How did you finance this deal?

Personal cash

How did you add value to the deal?

Complete rebuild of the property

Ours have anywhere from 15 to 30 parties depending on the amount or money we need.

Here is what we look for:

• Positive cash flow
• Cash on Cash return of 10%
• Cap rate greater than 7%
• Investor return 10%-15%

This is for a "C" class property.  We would add value in the form of new flooring, new kitchen and bath and work outside.  Increase the rent and hold for 5 years.

I agree first invest in your home market.  Watching over properties that are close to home is much easier than traveling. I am fortunate to be living in Atlanta a market that has not stopped expanding in the last 35 years.  This growth has created many opportunities. 

Look for cities with a growth in population that is supported by business development.  Like Wenda Wang mentioned above, Charlotte, Atlanta, Nashville, Greenville, etc.  are all great markets to invest in.  I also invest in these markets via a syndication.  Finding a good syndicator is a great way to invest in markets that you are not living in and seeking out opportunities.

I have been investing in syndications for over 15 years.  I look for the experience of the syndicator, how much money the syndicators are placing into the deal and of coarse the percentage split that they are taking of the deal.  You may also look for a preferred return on the Limited partners investment.  Analyze the deal yourself and make sure you agree with the GP's numbers.  Understand the exit strategy and make sure it not only meets your timeline but looks logical.  As a limited partner you don't have any control of the deal other than accept the General Partner decisions.  My investments with syndications have been all good experiences.  It was especially good when I had a W2 job and did not have time to manage or research my portfolio.   It is also a great way to begin to understand how to structure larger deals.  I used it as a training tool to start my own syndications.  Hope that helps.

Carolyn,

I would google Spencer Burtons - commercial real estate investing models.  He has some great models or youtube videos that can help you out.

Larry

Sparty Investments.

We own over 3000 doors and have the same experience you are seeing.  We have not found a deal that pencils on a value add in over twelve months.

We own multi family properties in the southeast and would be happy to discuss with you.

I have been looking in Atlanta for Multi-Family and have not found anything of value in or around the area.