All Forum Posts by: Michael Hauer

Lots of people say they're in real estate.  But in fact they are "looking at deals", "not sure yet what strategy to use" and a host of other answers.

There are 3 ways to make money in real estate:

1. Wholesaling 2. Fix & Flip 3. Buy and Hold

If you're doing something else, you are not "Doing" real estate.

If you need help figuring out "where to start", send me a message.  I'm happy to help.

JMHO

 Thanks Kyle!

Hi Jeff.  May I suggest you consider investing closer to home initially.  Figure out the process, do a few deals locally say 5 or 6.  Then you'll have some experience and confidence moving to out of state investing.  One of my mentors told me when I started to begin with 10 mile of your home.  Good luck.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $226,000
Cash invested: $55,000
Sale price: $469,000

I was the buyers agent, listing agent and project consultant on this deal with my contractor. He hadn't done a full rehab in awhile so I let he lead the way with me as a backup advisor. He got himself into some trouble a few times while caused a delay. But I was able to guide him through it successfully. My thoughts were that he needs to make the mistakes so he can learn from them and be more successful in the future. I hope it worked. In the end, he made money and he did a fantastic job.

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

The house was in a good neighborhood with what I thought had good upside for the selling price. The house also had character but it was in desperate need of a complete renovation. Floors and walls were damaged, basement had water in it and it had too many little rooms on the first floor. I loved the Craftsman style and I tried to keep the design in line with tradition. In addition, we had to bring it into the 2020's so many updates were needed. such as all new plumbing, electric, HVAC, etc.

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

The house was on the MLS. The sellers needed more money than it was worth at the time. I though we could make it back on the backside. And that's what happened. The negotiation was easy.

How did you finance this deal?

Combination of personal funds and Hard Money. Next time I will use a Private Lender and a Hard Money lender.

How did you add value to the deal?

We completely gutted the property down to the studs and built it back.

What was the outcome?

The before and after photos speak for themselves.

Lessons learned? Challenges?

These type of renovations require some flexibility in terms of time, money and design. Things don't always go smoothly. Don't be afraid to ask others more experienced for help.

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

I was the buyers agent, the listing agent, the advisor, the counselor and therapist. LOL It's good to have someone with many skills and experience tagging along.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $226,000
Cash invested: $55,000
Sale price: $469,000

I was the buyers agent, listing agent and project consultant on this deal with my contractor. He hadn't done a full rehab in awhile so I let he lead the way with me as a backup advisor. He got himself into some trouble a few times while caused a delay. But I was able to guide him through it successfully. My thoughts were that he needs to make the mistakes so he can learn from them and be more successful in the future. I hope it worked. In the end, he made money and he did a fantastic job. The buyers were very happy and the Home Inspection and Appraisal went smoothly.

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

The house was in a good neighborhood with what I thought had good upside for the selling price. The house also had character but it was in desperate need of a complete renovation. Floors and walls were damaged, basement had water in it and it had too many little rooms on the first floor. I loved the Craftsman style and I tried to keep the design in line with tradition. In addition, we had to bring it into the 2020's so many updates were needed. such as all new plumbing, electric, HVAC, etc.

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

The house was on the MLS. The sellers needed more money than it was worth at the time. I though we could make it back on the backside. And that's what happened. The negotiation was easy.

How did you finance this deal?

Combination of personal funds and Hard Money. Next time I will use a Private Lender and a Hard Money lender.

How did you add value to the deal?

We completely gutted the property down to the studs and built it back.

What was the outcome?

The before and after photos speak for themselves.

Lessons learned? Challenges?

These type of renovations require some flexibility in terms of time, money and design. Things don't always go smoothly. Don't be afraid to ask others more experienced for help.

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

I was the buyers agent, the listing agent, the advisor, the counselor and therapist. LOL It's good to have someone with many skills and experience tagging along.

I am interviewing potential financial partners to work with me in the Maryland area and beyond.

I have almost 30 years experience as a residential investor, project manager and property manager.  I took some time off and now I'm back to acquiring properties for fix and flip, wholesale or long-term rentals. 

You would provide the funding, either initial money into the deal or the whole loan.  Initial money in is $20-$60k.  The maximum loan is $350k. 

If you would like a responsible partner in the field to invest with, I look forward to speaking soon.

Michael

443-442-4212