All Forum Posts by: Millie Pendola

Investment Info:

Townhouse buy & hold investment.

Purchase price: $104,000
Cash invested: $20,000

Deal Deep Dive:

Strategy: Buy and Hold Mid-Term Rental

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

Buy Box:
- Within 15 minutes to a major hospital
- Within 10 minutes to a Starbucks (LOL)
- At least two bedrooms
- Light Rehab Only (paint/floors/decor)
- Furnished Finder Expected Rental Income needs to be 25% over PITI

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

How I Found the Deal: '
- networking with fellow local agents (I am an agent, for context)

How I Negotiated the Deal:
- Gave the seller what they were asking for to get in contract
- Negotiated seller credit based off inspections
- Told the agent who brought me the deal that HE could represent ME in the deal, which made it a win-win-win. Seller got what he wanted, the agent double sided the deal, and I get a killer property that will cashflow.

How did you finance this deal?

Conventional

Lessons learned? Challenges?

- Serious investors will write on a deal that fits their buy-box
- Knowing your buy-box will create an easy decision making matrix for you to move quickly on deal that work
- Have your "ducks in a row" so when you find a deal that works, you can perform
- Be someone who performs in contract. If you write on a deal AND close, you are more likely to be presented with future deals FIRST because you take action
- Be someone who other people and other agents ENJOY working with.

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

Millie Pendola with Keller Williams Realty
Braydin Mehnert with the One Brokerage

Investment Info:

Townhouse buy & hold investment.

Purchase price: $104,000
Cash invested: $20,000

Deal Deep Dive:

Strategy: Buy and Hold Mid-Term Rental

Buy Box:
- Within 15 minutes to a major hospital
- Within 10 minutes to a Starbucks (LOL)
- At least two bedrooms
- Light Rehab Only (paint/floors/decor)

How I Found the Deal: '
- networking with fellow local agents (I am an agent, for context)

How I Negotiated the Deal:
- Gave the seller what they were asking for to get in contract
- Negotiated seller credit based off inspections
- Told the agent who brought me the deal that HE could represent ME in the deal, which made it a win-win-win. Seller got what he wanted, the agent double sided the deal, and I get a killer property that will cashflow.

Furnished Finder Expected Rental Income: $750-$850/mo PER ROOM

What I Learned:
- Serious investors will write on a deal that fits their buy-box
- Knowing your buy-box will create an easy decision making matrix for you to move quickly on deal that work
- Have your "ducks in a row" so when you find a deal that works, you can perform
- Be someone who performs in contract - barring glaring issues with properties - if you write on a deal AND close, you are more likely to be presented with future deals FIRST because you take action
- Be someone who other people and other agents ENJOY working with. This is honesty the biggest one. People do business with people they like, and trust. This will give you such an edge on getting deals flowing to you and people working FOR you!

Build a Legacy Worth Leaving

Fellow agents:

Would love to hear your thoughts on having/using an "ideal client profile" in your business and sticking to it (i.e. turning down business if it does not fit your model)

Fellow Investors: 

I recently had a friend reach out asking for my help in finding a property to flip. 

My business is primarily focused on buy-and-hold investors, so I told them that in order to give them the best service/experience possible, I would probably not be the best fit. How would you feel if an agent told you this?!

Would love feedback! Thanks in advance! 

 Hey Maria!
It was a great learning opportunity - lots of lessons for "free" on this deal! I work in the Knoxville market as well, North Knox is where I'm seeing lots of rehabs. Would love to connect sometime, hopefully you can get into your first deal soon! 

 That is awesome! The East TN markets are unique in that most real estate strategies will work. Lots of opportunities for flipping, I just learned that it is not my preferred strategy - but it was also my first flip. 

Knoxville, TN is a fantastic market for LTR,MTR,STR if those are strategies you use in your portfolio and, of course, the Smokies for STR. Those are the areas I prefer to be in.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $50,000
Cash invested: $10,000

Flip or Flop - East TN style!

Deep Dive:
50k HELOC funded the deal
off market - expired listing
all in at 70k
ARV 150k

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

it was small enough that I could make mistakes and them not be "expensive mistakes"

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

off market, motivated seller.

How did you finance this deal?

HELOC

How did you add value to the deal?

all cosmetic - needed LOTS of love

What was the outcome?

SOLD it

Lessons learned? Challenges?

WOW literally made all the mistakes and learned a ton.

1. Time is $
2. Being a project manager is HARD and I dislike it more than I thought I would
3. Will not be flipping lower end houses ever again
4. You make your money when you buy, buy smart
5. This would have been a good BRRRR

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

Me!

 That is great, the cost seg would be for 2022 and the 1031 would be for 2023 tax returns, respectively. Thanks for the feedback on this! 

 Thank you for the information!

Hey all! Just got a question from a client that I would love input on, as I am not a Tax Professional. 

Question: Is it beneficial to do a Cost Seg on a property if he plans on doing a 1031 on the same property later this year?

Thanks in advance!