All Forum Posts by: Michael Nugent

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $220,000
Cash invested: $60,000
Sale price: $335,000

Excellent opportunity with this entry level home in the heart of Riverside. You are just a few minutes drive to Starbucks (in less than a mile), the new 24 hours gym, schools, parks, Home Depot, bakeries, restaurants, orange groves...and the list goes on. This home brings lots of character and tons of upgrades including: New HVAC, roof, energy efficient windows, flooring, bathrooms (with tasteful vanities and Italian plank tile), upgraded plumbing & electrical...etc.

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

This deal was sold to me in conjunction with another property on the same street. So the money making opportunity was in selling both.

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

Western acquisitions in Corona

How did you finance this deal?

I put $100k down through a hard money loan at 10% APR over 12 months and paying 3 points on borrowed moony plus a $800.00 underwriter's fee.

How did you add value to the deal?

I practically had to fix EVERY frigging thing on this house. It was a pile of trash which took me for ever to fix. I really had to micro-manage this deal and sub-contract the heck out of it. Every material was found on the Craig's list, Facebook market and Home Depot clearance rack. I had to do some of the labor work myself. We really made this one look extremely attractive and even fixed up an un-permitted unit in the back, added new HVAC, reinforced foundation, added a new roof, windows & more

What was the outcome?

The out come was relieving. We received multiple offers the 1st week and sold it for more than I expected. We made about $22,000 after all costs associated with purchase, loan, rehab and sale.

Lessons learned? Challenges?

Bring your contractor to look into everything or LEARN about what to look for. Get your budget right from the get go. Look at a property from different angles. The only issue her is that wholesalers don't give you any time to really look into the properties they sell you. It is like walking on mine-bombs. You really have to use your experienced eye (and if you don't have one hire one).

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

I use Secured Income Group for the hard money loan. They are always so easy to work with. They are not the cheapest but they will take care of you.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $140,000
Cash invested: $10,000
Sale price: $200,000

This 3 bedrooms, 1 bathroom home is ready to sell. This property measures around 1,006 sq. ft. but the title shows only 660 sq. ft. The lot is around 6,700 but it feels a lot bigger.

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

The property was the Nastiest on the block and the price very attractive

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

A good agent I know presented me with the deal. It was a pocket listing. The price was originally $120,000 but it was suddenly increase when a neighbor made an offer. Both of us offered the same thing. The only difference is that I was there first and when I met the seller directly we had good chemistry.

How did you finance this deal?

I used cash

How did you add value to the deal?

I hired a good friend to clean it up. This home use to be a homeless and druggie house invested with rats and bugs. We managed to fill up 10 large containers with trash. Cleaned the interior with about 20 gallons of bleach and water and taped it myself to only find out the square footage was more than what was listed on title.

What was the outcome?

I listed it for $190,000 and sold for $200,000. This was a Quickie. I only held on to it for a total of 44 days from acquisition and close and made $43,500.00 before tax.

Lessons learned? Challenges?

I learned not to jump right away on the 1st offers that arrive. Be patient and let it season for at least a week.

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

Yes, I worked with Realtor Brenda Martines with better homes and gardens. She is amazing to work with and made it a very smooth transaction.

This is in deed an opportunity only the good eye can see. You made something of nothing. Great job and thanks for sharing. 

Thanks Patrick

Thanks Jimmy!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $228,000
Cash invested: $283,600

The home is a 2 bedroom 1 bathroom as per title but it actually has 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?

Its proximity to RCC and DTRiverside.

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

Through a wholesale company

How did you finance this deal?

Cash

How did you add value to the deal?

Completely upgraded the interior with emphasis on the kitchen, flooring and bathrooms. We also added an HVAC system,

What was the outcome?

We are currently in escrow for $335,000.00 was on the market for about 10 days

Lessons learned? Challenges?

It is OK to adjust the price down even after 5 days if not enough traffic has gone through and only one mediocre offer has arrived. I decided to reduce the price down $5,000 from $335,000 to $329,990 and that did it, within 5 days I received 4 offers and chose the strongest one at $5,000 above (or back to where I first listed).

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: $288,000
Cash invested: $370,000

This beautiful Spanish Revival home in the Wood streets is listed for sale and it is FHA approved. 3 bedrooms, 2 bathrooms, 1.5 car garage, 1,345 sq. ft. of living space and a 6,800 sq. ft. lot. Just beautiful with the old time charm and all new systems.

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

I loved the Spanish Revival style and the neighborhood I adore.

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

I found this deal through a whole-seller. I negotiated it to $288,000 from $305,000

How did you finance this deal?

All cash deal. I used one of my investor money to buy and pay pay closing costs. Then borrowed another $50,000 at 7% over 4 months and used about $35,000 of my own money to cover the rest of the rehab cost.

How did you add value to the deal?

As you can see from the pictures, we preserve the Spanish revival charm and added the espresso and cream colors to emphasize it. We went with a dark brown/bluish/grayish kitchen cabinets and espresso laminate throughout and 6 inch based board which we painted espresso as well to just add the Spanish flare to it.

What was the outcome?

We are currently entertaining offers at $480K+

Lessons learned? Challenges?

Over budget - over budget - over budget mostly on this oldies.

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

Nope

Any time 👍🏼

Perfect! I’m happy to offer my office as a meeting place if you would like. I’m located in Downtown across from where Sevilla’s Restaurant use to be at. I can easily accommodate 12 to 24 people. 

Hello guys,

Please let me know next time you meet up in Riverside area. Would love to connect and share. Thanks!