All Forum Posts by: Michael Nugent

@Michelle Martin Good morning, this situation really sucks. What I would do if I were you, I would contact your sale’s agent, I would ask for the transaction disclosure statement. That form has a five year statue of limitations (at least in California this is the case) so the seller/s should have disclosed everything that they know about this property. If they fail to do so, then you may be able to go after them for damages through your RE broker. I would also try to find out if there was a previous history of pest control maintenance. It is super important to become really good friends with the current tenant on this property. As they will be able to help you regarding the intel you’ll need.

Good luck!

I will see you all there. Thanks!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $288,000
Cash invested: $370,000
Sale price: $480,000

Spanish Revival home in the Wood streets of Riverside. 3 bedrooms, 2 bathrooms, 1.5 car garage, 1,345 sq. ft. of living space and a 6,800 sq. ft. lot. Major rehab

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

I love this neighborhood and I have wanted to get my hands on a Spanish Revival for a while, plus the numbers made sense as you get as much as you put into a FLIP in this desirable neighborhood.

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

Whosaler.

How did you finance this deal?

75% Cash from an associate and 25% of my own cash, which I borrowed from 2 friends at 7% and 8.5% return for 4 month's term. The rest I put on my credit cards.

How did you add value to the deal?

We brought Spanish revival back to this home by going with light tan and bold espresso color tones inside and out. We also had made a custom rod-iron stair case with the Riverside insignia imprinted on it and Mexico made 4" talavera tiles to scream Spanish!!! We meticulously picked all the light fixtures to add more character. We enlarged the kitchen and blew the bathroom out!!!

What was the outcome?

We sold it for $30,000 more than what we planned for.

Lessons learned? Challenges?

I learned to not just jump on the 1st offer I get. Let a good product be showcased for at least a week before making a final decision. Do not beat yourself up if the 1st buyer doesn't come through and understand it just wasn't the best buyer for the house.

Challenge: Finding a really good buyer took us a while. But, we didn't stop and kept going until we found the one.

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

Nope.

@Abad Marroquin

Hello Abad, 5 main thing you need to do b4 placing property on market is as follows: #1: Aesthetic: Very important for units to look great and inviting. Try to at least stage one of the units. It works! #2: Strategic Pricing: this is a buyer magnet if you do it right with the help of your Realtor. Make sure to price it a bit below market...sounds crazy? Well, it works because you literally can't underprice a good product. This will drive the price up so you get top dollar. #3: find a realtor that has a track record you can read and enough positive reviews. Must have knowledge about properly filling out the MLS and the clear P&L or revenue statements showing the number, which is the MOST important part. Additionally, he/she should be aware of different financing products or strategies to help buyer buy. Also, MARKETING: Is this agent going to invest in a professional photographer to do a photo shoot and drone? What other real estate advertising engines is he/she going to use? Social media exposure? #4: Accessibility is key. A great all-cash buyer flies into town to see, choose and offer on an income property and calls your agent on a Sunday afternoon for a showing. This guy's plane leaves in the evening. Your agent better be prepared to show or at least have somebody to do so. #5: have all your P&L available and ready. This will help you enormously.

Good luck!!!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $210,000
Cash invested: $269,000
Sale price: $305,000

CRAFT-MAN in the heart of the city. 2-car garage detached, RV access, single story. BRAND NEW HVAC, water heater, recess lighting. PLUS, All new gray wood laminate flooring, bathrooms with Italian carrera-like tile, real wood double-sink vanities with marble and granite tops, White-Quartz counter tops & 6" back-splash in kitchen with White shaker self-closing cabinets, nickel brushed hardware and stainless steel appliances. Ceiling fan in every room, all new doors, most windows are new

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

THE PRICE

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

WHOLESALER

How did you finance this deal?

CASH

How did you add value to the deal?

PRESERVED THE TRUE ERA CHARACTER AND CONVERTED A LAUNDRY INTO A FULL OPERATING BATHROOM

What was the outcome?

SUCCESS. IT SOLD IN JUST A FEW DAYS FOR OVER ASKING.

Lessons learned? Challenges?

ALWAYS ALWAYS ALWAYS GET A SECURITY SYSTEM ON A VACANT HOME

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

NOPE

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $210,000
Cash invested: $269,000
Sale price: $305,000

CRAFT-MAN home in the heart of the city within walking distance to everything and easy access to the 10 fwy. Enjoy this 3 bedroom, 2 bathrooms, with in-house laundry, 2-car garage detached, RV access, Ally access...single story home. You will love the BRAND NEW HVAC, water heater, recess lighting. PLUS, All new gray wood laminate flooring, bathrooms with Italian carrera-like tile, real wood double-sink vanities with marble and granite tops, White-Quartz counter tops & 6" back-splash in kitchen with White shaker self-closing cabinets, nickel brushed hardware and stainless steel appliances. There is a ceiling fan in every room, all new doors, most windows are new, updated deck & wrap around porch.

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

THE PRICE

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

WHOLESALER

How did you finance this deal?

CASH

How did you add value to the deal?

PRESERVED THE TRUE ERA CHARACTER AND CONVERTED A LAUNDRY INTO A FULL OPERATING BATHROOM

What was the outcome?

SUCCESS. IT SOLD IN JUST A FEW DAYS FOR OVER ASKING.

Lessons learned? Challenges?

ALWAYS ALWAYS ALWAYS GET A SECURITY SYSTEM ON A VACANT HOME

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

NOPE

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $250,000
Cash invested: $40,000
Sale price: $350,000

Great entry level home near CBU. Located on a cul-de-sac, this turn key home is ready for a family who loves to entertain. This home has a very large back yard where you can easily build a swimming pool and a 1/4 basket ball court and still have room for more. Do you have toys and an RV? That's okay because 8637 Stark St has the room. Enjoy this 3 bedrooms, 2 bathrooms home.

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

I know this area well and knew that at the price it was being offer there was some money to be made

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

Western Acquisitions in Corona, Ca

How did you finance this deal?

I borrowed money from one of my RE buddies and offered him to split it all the way down to the middle.

How did you add value to the deal?

We added extensive espresso color wood fencing that was very inexpensive to do and and added lots of curb appeal. We also converted a very very large laundry room into a stackable laundry and 0.75 bathroom. As always, we beautified and staged it to add the WOW factor. My beautiful wife Irma Nugent helped with the staging. She has an eye for this type of thing.

What was the outcome?

We ended up splitting $42,000 (50/50). My buddy put all the money and I managed the project and listed and sold the house.

Lessons learned? Challenges?

Some times it is ok to be BOLD on the colors you use as long as the house welcomes the make up. Staging works!!!!

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

Nope

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $257,500
Cash invested: $48,000
Sale price: $350,000

Great entry level home near CBU. Located on a cul-de-sac, this turn key home is ready for a family who loves to entertain. This home has a very large back yard where you can easily build a swimming pool and a 1/4 basket ball court and still have room for more. Do you have toys and an RV? That's okay because 8637 Stark St has the room. Enjoy this 3 bedrooms, 2 bathrooms home with an in-door laundry, a renovated kitchen with new cabinets, white quartz counter tops, decorative back-splash tile, stainless steel appliances, sink and faucet. (the seller is throwing-in a newer white fridge located in the 2-car detached garage, which by the way offers tons of storage, cabinets and working space. All BRAND new windows, doors, carpet, laminate flooring, tile flooring, tub & shower glass sliding doors, decorative mirrors, recess lighting, ceiling fans, deck, front fencing and more. Make this one a must see

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

I know this area well and knew that at the price it was being offer there was some money to be made

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

Western Acquisitions in Corona, Ca

How did you finance this deal?

I borrowed money from one of my RE buddies and offered him to split it all the way down to the middle.

How did you add value to the deal?

We added extensive espresso color wood fencing that was very inexpensive to do and and added lots of curb appeal. We also converted a very very large laundry room into a stackable laundry and 0.75 bathroom. As always, we beautified and staged it to add the WOW factor. My beautiful wife Irma Nugent helped with the staging. She has an eye for this type of thing.

What was the outcome?

We ended up splitting $42,000 (50/50). My buddy put all the money and I managed the project and listed and sold the house.

Lessons learned? Challenges?

Some times it is ok to be BOLD on the colors you use as long as the house welcomes the make up. Staging works!!!!

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

Nope

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $228,000
Cash invested: $283,600
Sale price: $334,990

The home was a 2 bedroom 1 bathroom as per title but it actually had a total of 3 bedrooms and 1.75 baths plus an in-house laundry area. Enjoy brand new and water proof oak gray laminate flooring through out, newer HVAC, windows & shingle roof.

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

I loved it was so close to RCC and the price was very attractive as well.

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

I purchased it through SJO a SoCal wholesaler.

How did you finance this deal?

I paid cash for this one.

How did you add value to the deal?

We did what we do best and beautified it to the T. As always, we added quality products and workmanship. We found out that by spending just a little more you get back more.

What was the outcome?

Bought it for $225,000, total rehabbed cost was $52,000 and sold it for $335,000

Lessons learned? Challenges?

I learned a lesson I actually preach on and that is to price strategically. I first listed it at $335,000.00 when deep in-side I felt to list it $329,990.00. After 5 days of only receiving one ugly offer, hosting 2 open houses and about 80 showings; I new I had to adjust the price down. So, that is exactly what I did. On the 5th day of being on the market, I reduced the price to my original gut feeling price of $329,990, promote it hard on INSTAGRAM and received a total of 5 offer within 3 days

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

Nope. Just me. I think we could have sold it faster if we staged it, but my family and I went on vacation and didn't have time to do it.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $265,000
Cash invested: $42,000
Sale price: $332,000

Amazing entry level property in the heart of town. 4 bedrooms, 2 full bathrooms, single story, 2-car garage attached, large 6,970 sq. ft. lot. Completely gated. Laundry unit is located in-side the house. Property has had a cosmetic renovation. Roof and windows are only two yers old. This one here will be a "BLACK FRIDAY" special and it will not last at this price

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

I actually felt obligated to help out the sellers. That was my motivation. I know this is business but, I ended up paying them more than I should have. However, I knew the area well and relied on the fact that my amazing wife would help me stage it for a quick sale.

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

The seller contacted me on a postcard I sent out 6 months before we actually met.

How did you finance this deal?

I used my own cash

How did you add value to the deal?

We staged staged this home and made it aesthetically attractive to the eye. We also added an HVAC, new kitchen, appliances and flooring. I also added DG on the back and new sod at front. The windows and roof were new already. I also added some inexpensive bamboo fencing on the chain link fence to add privacy. We use very modern and trendy colors. As always, we emphasize on the kitchen and bathroom.

What was the outcome?

We ended up selling it for way less than we should have, but this was around Nov-Dec of 2018 when the market got a little funky and buyers were not buying. But, I was able to secure a sign call which turned into a double-ended deal (this is when the listing agent finds a buyer and makes a full 6% commission). This deal only pay me $16,000.00 but I was happy to get my money out and throw it at a different financed flip I had going.

Lessons learned? Challenges?

It pays off to not be greedy. Good Karma on this one for sure!!! The only challenge was the funky market we experienced during November and December of 2018.

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

Nope