All Forum Posts by: Matthew Motley

Investment Info:

Retail commercial investment investment in Grand Saline.

Purchase price: $20,000
Cash invested: $20,000

My first investment purchase, a former meat processing company.

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

This property had been abandoned for decades and sits on the main highway going thru our town. It's in a prime location and next to a thriving restaurant. It was a great purchase and has paid for itself already.

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

Found the owners by searching the tax records and found them. We negotiated it quickly and did our own contract since it was an "off market" purchase.

How did you finance this deal?

Paid Cash

How did you add value to the deal?

Removed a large attached barn that was in total dis-repair and really a hazard. Added a new metal roof along with a restroom.

What was the outcome?

We have a building that is rented to 2 thriving businesses. The rental income for this property is lower than it should be, but the tenants have dowe quite a lot to the inside. We have also added to mini split Hvac systems which will now cause the monthly rental amount to increase.

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

Not on this property.

Investment Info:

Other commercial investment investment.

Purchase price: $105,000
Cash invested: $105,000

Commercial Building (former meat processing company) that came with an adddtional barn, tons of parking, and a large lot.

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

It was off market, but I have wanted to purchase it. We own 3 former meat processing buildings in our town. The walls tend to be very well insulated which makes for a bonus when renovating.

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

I saw the owner at the building and stopped in to meet him. He is a former US Veteran and a nice guy. He was in a bind due to his wife's illness and needed to sell. I negotiated with Bill and we came to an agreement.

How did you finance this deal?

The payment for this investment property came from a 1031 Exchange from a 4 Acre property that I had recently sold.

How did you add value to the deal?

I took the large barn, cleaned it up and had the power turned on. I am currently renting the barn for $700 with the tenant paying the utilities. This will pay the taxes plus on the entire property. The Main building is going to take a little longer to do something with, while I have other projects that I'm working on currently.

What was the outcome?

I own, outright, a large property that has great daily traffic and will increase in value.

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

Not on this property.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $78,500
Cash invested: $50,000

Home in serious need of repair. Near complete gut. Pulled out entire kitchen, bathroom, and removed 4 windows and 4 exterior doors (not sure why there were 6 total doors leading into the home. Now there is a front door, back door, and door into garage which is much more acceptable. I found that the amount of doors and windows were a strain on the HVAC and needed to come out to help cut the energy use costs.

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

What made me interested is that it was a total mess and I knew that I could add tons of value to it. Also, it came with an additional lot next door which means that I can build another residence or possible multi family unit on that lot for additional rental income.

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

Found on Zillow on a Saturday morning and had a contract on it by noon that day.

How did you finance this deal?

Paid Cash

How did you add value to the deal?

Complete Renovation

What was the outcome?

Still working on this one, but it's going great.

Lessons learned? Challenges?

Check the joists around and under water/tubs/kitchen for rot. Lots of bad beams

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

Yes, I used the listing agent to purchase since it was a Saturday and I really didn't think I'd be able to get it under asking price. The original was $89,900 and we paid $78,500. I believe the rent will be around $1,900 per month.

Investment Info:

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

Purchase price: $52,000
Cash invested: $70,000

Purchased house with a detached barn (the barn was former bait shop). Renovated the house and got a renter @ $1,400 / month then did a cash out refi and renovated the barn in to a 2/1 with a renter for $1,100 / month.

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

The property was in bad shape and came with an additional structure.

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

I knew the sellers

How did you finance this deal?

paid cash

How did you add value to the deal?

renovated home with new flooring, moved some doors to add a full bedroom.

What was the outcome?

I have an income producing property @ $2500 per month

Lessons learned? Challenges?

This was my first real renovation, so I learned that I need to have the right contractors working on my projects. Cheap isn't always the best.. neither is contractor who charges the most $$$$.

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

My property manager for rental.

Investment Info:

Single-family residence fix & flip investment in Grand Saline.

Purchase price: $85,000
Cash invested: $50,000
Sale price: $247,000

Single family 3/1 with detached garage, renovated into 4/2.

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

It was my first auction purchase and came with an oversized lot.

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

Purchased in online auction.

How did you finance this deal?

Cash

How did you add value to the deal?

renovated to 4/2 and rented for $1795.00 / month

What was the outcome?

Selling this home to the current tenant.

Lessons learned? Challenges?

went over budget renovating this property, but it was worse condition than initially thought.

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

Worked with my realtor to purchase, rent and sell.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $11,000
Cash invested: $110,000

Abandoned meat packing building. Total Disaster. Purchased for $11,000 and added value by renovating to a very unique 3bed / 2bath industrial single family residential rental

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

I saw this building multiple times per day as I drove by it. Tired of looking at it.

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

Driving for dollars. Contacted the current owner. He asked $27,000 but hadn't been inside the building in many years. Once back inside, the ceiling had totally collapsed.

How did you finance this deal?

Paid Cash

How did you add value to the deal?

Complete renovation from plumbing to new roof.

What was the outcome?

Renting this property for $2,200.00 per month and the ARV is currently $325,000.00

Lessons learned? Challenges?

I found that seeing an abandoned property, whether residential, commercial or industrial... look at it and be creative. Check with the city and see what is possible for that specific property investment.

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

Not to purchase, but yes.. for rentals I have a property manager that has become an invaluable partner in what I'm doing.

Investment Info:

Retail buy & hold investment.

Purchase price: $60,000
Cash invested: $12,000
Sale price: $60,000

Former Chocolatier's facility.

Plan to renovate & turn into multi space lease during the fall of 2022

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

This is our first seller financed property

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

The building belonged to my chiropractor and I negotiated directly with them for this property and asked them to seller finance. It took a little work to show them the benefits of "being the bank" in this case and extending me credit.

How did you finance this deal?

Seller Finance

How did you add value to the deal?

I will be dividing the building into 2 and possibly 3 spaces. My intent is to lease to an energy drink company for one space and then potentially open a business of my own in the other side. The 1st tenant will cover the costs and then my business will have little overhead along with storage for my renovation work in the back, an office for myself and storage under the building for materials. I'll use the back of the building for parking.

Lessons learned? Challenges?

I learned to make sure that I am paying the least possible for a property.

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

Not on this project.