All Forum Posts by: Mathieu Gagnon

@Anthony McEvoy Sorry for late reply.

My holding costs are:

-Interest on the line of credit

-City taxes

-Electricity

-Insurance

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $198,000
Cash invested: $1
Sale price: $380,000

Project summary
Asking price: 205 000$
City appraisal value: N/A
Purchased price: 198 000$

Purchase expenses: 2 650$
Holding cost: 6 642$
Rehab cost: 50 567$
Selling cost: 13 280$
Total costs: 271 139$

Sold price: 380 000$

Profit: 108 861$

Money invested: 0$

Return on invested capital: Infinite
Annualized ROIC: Infinite

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

The house was ⅔ finish.
It's was a brand new construction but the owner passed away.
Very nice to deal with brand new stuff.
Fair price with ok potential that turned out 45K more than expected

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

Neighbor of my parents

How did you finance this deal?

Refinance my parents' house.

How did you add value to the deal?

Complete the last ⅓

What was the outcome?

Infinite return on a 108 861$ profit.
My parents could clear the rest of their personal mortgage of 50K and split the rest equally with my sister!
A family deal!!!! Great

Lessons learned? Challenges?

I LUV auto-construction.

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

I listed the house and sold it with a collaborator

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $36,000
Cash invested: $102,423
Sale price: $189,000

Project summary
Asking price: 75 000$
City appraisal value: 94 000$
Purchased price: 36 000$

Purchase expenses: 950$
Holding cost: 3 950$
Rehab cost: 61 523$
Total costs: 102 423$

Sold price: 189 000$


Profit: 86 577$


Money invested: 102 423$
Return on invested capital: 84.53%
Annualized ROIC: 144.91%

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

The experience, the numbers, the purchasing price, the potential return.

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

MLS.
Paid cash and with being very flexible for the purchasing date

How did you finance this deal?

Cash // Business Line of Credit at 1.99%

How did you add value to the deal?

Redo practically everything in it.

What was the outcome?

Great profit of 86 577$

Lessons learned? Challenges?

I'm no big fan of "redoing everything".
We had to work with a house that had more than 100y.
The conditions inside were not very good/healthy.
We needed to deal with sewage problems...

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

For the purchase and I sold it as an agent.

@Marisa R.

Marisa is a Star.

I have been charmed by her journey 6months ago reading at some of her posts.

Determination, boldness, and a system make the adventure so exceptional.

Thanks for sharing your path.

I wish we can do a deal/join venture together.

Nous recherchons activement des investisseurs québécois pour du Buy&Flip et du BRRRR.

-Nous trouvons les propriétés

-Nous fournissons la mise de fonds

-Nous payons les coûts reliés à la rénovation

-Nous payons les coûts reliés durant les rénovations (électricité, taxes, etc)

-Nous payons les frais de démarrage (notaire, taxe de bienvenue, etc)

.

Critères recherchés

-Vous devez avoir un bon bureau de crédit

-Vous devez avoir un emploi temps pleins

-Vous devez être à l’aise d’investir ailleurs que dans votre propre ville

Contactez-nous en privé.

.

MAG

Hello Xiomara,

You can add to the offer a condition that states something like "conditional that my partner(s) agree on the deal and visit the property".

There is plenty of ways you can exit (financing, visits, inspection, costs estimates, etc) but at the end it's all about how you want to do business.

If your intentions are to get out of a deal 4/5 times....

Well you might have to find buyers before deals and show them this deal as the kind of deals you bring in general and agree with them that you will reach them when deals like that occur.

Talk to you soon.

Investment Info:

Single-family residence buy & hold investment in Bromont.

Purchase price: $363,000
Cash invested: $8,500

We co-build our first house/home.
We live there but AirBnb hacked it.
In 12 months we got 43 bookings.
AVG per night price 169$.

Thanks! We were able to pay all the expenses related to the property (mortgage(interest+++principal), cable, electricity, taxes, insurance)
Breakeven + 800$ cashflow (principal paid portion)

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

Reduce my monthly expenses

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

My wife got the idea.
We are close to a ski resort and a zoo

How did you finance this deal?

Since we co-built the house the entrepreneur was willing to give us back a cash back based on the total value.
Total downpayment 8 500$!

How did you add value to the deal?

The house is modern and brand new.
We allow big groups to come over. 15+ at the beginning and reduce to 10 people.

What was the outcome?

We lived here for free for an entire year.
We needed to be out 115 nights.
We have friends and family that hosted us when we were booked.
Family and friends were very happy to see us on weekends.

Lessons learned? Challenges?

After a year... you get tired of quitting your lovely house every weekend.
It gave us the chance to travel a lot though.

Since it's your house you might be a little bit attached.
Buy new towels, bedsheets, etc. and switch sets each time.
If you want to hire someone for the cleaning go for it. We preferred to do it ourselves to get more money and be assured that it was really really clean

We are stopping for a while due to a new baby.

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

Airbnb

Investment Info:

commercial investment investment in Granby.

Purchase price: $1
Cash invested: $1
Sale price: $4,400,000

This was one of the only big commercial lots available in the Granby, Qc area.
This was sold by the owner.
I was able to convince them to represent the transaction.
Found a buyer in two days.
Finally sold this fantastic location to the ZOO!

Happy ending for both buyer and seller.
In 3 months the entire deal was wrapped.

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

Lots are easy to manage.
I'm working with an entrepreneur who builds houses.
We are actively looking for vacant lots.

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

I was looking to purchase something at the cost of 20K ish.
I'm always looking for other opportunities for the investors surrounding me.
So, I contacted this seller and it turned out my investors were not interested in purchasing this lot.
I then agree with the seller to represent them on a larger scale.

How did you finance this deal?

N/A

How did you add value to the deal?

By focusing on its location.
Approaching real estate corporations that have supermarket, malls, banks, as clients.

What was the outcome?

A commission of 132K

Lessons learned? Challenges?

Action!
Move forward and life will help you find what you are fit for.
When you find it, Just go for it!

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

Yes.
I needed to work with a friend who is a commercial broker for this deal.
It gave me the kick in the butt to go and get my commercial (in process) broker licence and the residential one (done in a month and a half).

@Greg Kurzner

You are a Star.

Thanks for replying.

Ironically we have been to PeachTree City for other business 12 times in the past year.

Atlanta is an interesting area.

I'll reach out to you in PM and look what can be done.

Thanks

@Mitch Messer

Thank you so much for your message.
I have already thrown that out to the world in a previous post https://www.biggerpockets.com/forums/522/topics/64...

It's not really about the cashflow itself or the ARORC. (Annualized Return on Risk Capital)

It's more about, holding something that can pay itself from its cashflow and that is allowing me the equity to invest for more units.

After a range of 15 to 25 years (depending when I bought it) I'll be able to use the entire equity acquired and leave that to my family.

I'm aiming for a quick 3M in assets and will extent it to 25M by 2024.

Totally doable if you get surrounded by the right people.

Are you someone that can help me get that promise completed?

 If yes, please reach out to me in private.

I'm focusing 100% of my work time on RE for 2019.

Thank you soooo much again.