All Forum Posts by: Murray Smith

Investment Info:

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

Purchase price: $125,000
Cash invested: $60,000

West Milwaukee Duplex. The deal came from Probate direct mail. Both Units were updated nicely and are fetching high rents for the area. Lower is 2 bed 1 bath $1425/mo with pet. Upper is 2 bed 1 bath $1275/mo with pet. BRRRR'd it!

Investment Info:

Single-family residence fix & flip investment in Milwaukee.

Purchase price: $58,000
Cash invested: $5,500
Sale price: $111,500

Milwaukee, WI Wholetale that was going to be a full flip. I ended up deciding to clean out and list on the market. Accepting an offer above asking price.

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

Seller was in tax foreclosure

How did you finance this deal?

Personal funds

Investment Info:

Single-family residence wholesale investment in Racine.

Purchase price: $70,000
Sale price: $90,000

3 bedroom 1 bath ranch home.

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

Wholesale is a great real estate tool to create income!

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

Probate lead

This was in Bayview.

Investment Info:

Single-family residence fix & flip investment in Oconomowoc.

Purchase price: $95,000
Cash invested: $1,950
Sale price: $173,000

Single family wholetail.

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

The low risk. I knew what the property could sell for on the market and without having to complete a rehab I still made a huge profit.

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

I noticed a vacant home in my city driving for dollars. I looked up the ownership on public records and noticed the owner lived out of State. I sent the owner a multiple touch direct mail campaign and they resonded after 8 or so touches. It was simple to negotiate as the owner was desperate to sell. They already had a verbal offer of $85,000. I simply offered $10,000 more and they accepted!

How did you finance this deal?

Personal money and private money.

Investment Info:

Small multi-family (2-4 units) wholesale investment in Milwaukee.

Purchase price: $135,000
Sale price: $142,000

Wholesale deal. I got the property under contract for $135,000 and assigned to another investor making a $7,000 assignment fee.

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

At the time I wasn't ready to take on another rental so I assigned the contract to another investor.

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

Direct mail campaign. It was fairly easy to negotiate with the seller. She was done being a landlord and she was aware of all deferred maintenance. She suggested the sale price and from there I new what I could assign it for.

Investment Info:

Single-family residence buy & hold investment in Milwaukee.

Purchase price: $74,900
Cash invested: $75,000

BRRRR strategy - Purchased a foreclosed property in one of Milwaukee's hottest neighborhoods. This home needed everything! New electrical, new plumbing, new HVAC - including adding ductwork to second floor. New roof, and new dormer to create a code compliant 3rd bedroom.

$149,900 invested. Appraised at $205,000. CASH OUT REFI of $150,000. 73% LTV.

Rents for $1,550/mo.

$400/mo. cash flo.

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

To build long-term wealth and also wanted the ability to pull out and reinvest my money.

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

MLS listing.

How did you finance this deal?

Personal funds and Private Money.

How did you add value to the deal?

The rehab increased the ARV immensely. Being an Architect I was able to save money by doing the design/permit drawings myself. I also saved money by G.C.-ing the rehab myself.

What was the outcome?

I created a high-end rental that attacted great tenants. The project created $55,000 in equity, returned inital investment, and provides nice monthly cash flow.

Lessons learned? Challenges?

Managing contractors and dealing with inspectors is and will always be one of the greatest challenges.

Not an Engineer, but an Architect.  My first rehab was extensive and included a dormer addition.  It’s nice being able to draw plans for permit and bidding myself. 

Who out there is using Realeflow?  I’d like to hear from you!  Let’s connect, trade success and failure stories to better enhance our direct mail.

-Murray

The the correct way to discuss or look for potential financial partners on BP?  I believe there’s SEC guidelines that need to be followed?

-Murray