All Forum Posts by: Nevin Ashley

Originally posted by @Moises R Cosme:

@Nevin Ashley I have had similar experience... I do however, put a ton of value in the practical know how I gained from jumping in and doing it myself, not necessarily so that I could do it better next time but so that I had a better metric for evaluating future contractors.  For every aspect of our business we try to have a basis of knowledge so that we can work with the right people.

Obviously, the project worked out for you so you feel great about it but I wanted to share my experience and give you my thoughts on a hidden benefit for you down the road.  Awesome that you guys did well!!!  

Moises, you are exactly right. We were very fortunate that I knew the potential for the area with ARV because I live less than 1/4 mile away and I was able to purchase at such a low price. The experience I gained throughout the process was priceless no matter the outcome. I know I enjoy the project, but don't want to be consumed by it. I would rather spend time finding, negotiating, and managing the project than being there everyday. Although I do enjoy a good DEMO day :)
  

Originally posted by @Moises R Cosme:

Outstanding work Nevin!!!  So did you end up hiring out all of the work, or did your partner do a lot of the work himself?  I am curious.  

 We ended up doing a lot of work ourselves and hired out the bigger projects, but in all reality could have probably hired it out from get go and been about the same.  Too much time, and stupid DIY mistakes that cost more money in long run but can't put price tag on the education gaining from learning that firsthand.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $159,000
Cash invested: $22,000
Sale price: $330,000

1959 Single Family home on 4.2 acres with lake. Complete remodel.

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

This home came up for auction just a few houses down from where I live. Great rural area, with a private lake, but needed brought back to life.

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

My realtor sent to me, and then it went up for auction. It was online auction that I learned I didn't like due I couldn't jump bid by $5,000 or more to make others scare away if wanted. In the end, I got it for under our max budget.

How did you finance this deal?

I partnered on this deal with another like minded couple. We both put in 22k initially and then got a construction loan through my local lender at 5% interest only. We had a rehab budget of 60k and we blew through that and had to put an additional 27K.

How did you add value to the deal?

We completely renovated the home and opened it up. Main floor only had one bath, and we split it made hall full bath and added a master bath on-suite. We had to completely redo the roof, and the garage. The garage was an addition at some point but was poorly built. We completely redid the garage with new footers, garage slab, brick.... Basement was completely redone as well. We knew the market was great so we put more money in, and redid pretty much everything.

What was the outcome?

The house turned out great. We sold it FSBO and has multiple offers within few days, and after recouping our initial investment and the overage on the budget we had to put in, we both profited over 40K. :)

Lessons learned? Challenges?

The biggest lesson I learned through this process is just because I am gone with my full-time job it doesn't mean I need to partner to have someone be there. I am a person who would rather hire the work out and get the project done, while my partner wanted to do more work themselves even when they work a full-time job. Project lasted much longer than it should due to a full renovation on a part-time DIY schedule. In the end, we did great, the house turned out beautiful, and buyers love it.

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

Kristina Rhodes with Michael Reeder Team

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $35
Cash invested: $20

I BRRRd this deal. Bought for 35, rehab cost 20. Got it rented out then refinanced a year later and was able to pull all cash out and put it into the next deal.

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

I really wanted to add to my portflio, and BRRRing it was just one of my exit strategy. In the end it made the most since, because it was completely redone and loved the area.

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

It was my first deal I negotiated all myself. Found it on Facebook of all places. Listed for 49,900 and place was in terrible shape. I went back and offered 35 thinking there was no way. Sellers accepted offer, and away we went.

How did you finance this deal?

This is unique. I found private investor (my grandpa). He had money just mature in a CD and it was only getting maybe 1% if he reinvested. So I approached him, and offered 6% Hard money. We came to terms at 4% (yes, he tried to get less). I still use his money today for projects and just pay him interest. He doesn't want it paid off, cause I'm helping him and now I have a little extra to use if need.

How did you add value to the deal?

We completely remodeled the house. It is a very small 2/1 and we opened it up. (I believe we kept a handful of 2X4s that were damaged by termites.

What was the outcome?

The project took longer than it should. Contractor problems, but in the end everything turned out great.

Lessons learned? Challenges?

Don't be afraid to make absurd offer if that's what the numbers say. Also, always have a list of contractors to rely on.

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

Kristana Rhodes with the Michael Reeder Team

American Wholesale, Inc is a great place.  Purchased a duplex that had all new windows installed from there and when one was was recently broken, called in and it was super easy to just replace the glass.  I did this all from out of town a well.

This was my first rental back in 2017, since then I BRRRd another in 2018 that I had originally considered flipping but liked area and felt it was better to hold.  Planning to purchase 2 more by the end of the year this year.

Investment Info:

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

Purchase price: $120,000
Cash invested: $29,000

Duplex with two units both with 2 bed/ 1bath. Bottom unit has full basement and 2 1/2 car detached garage.

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

I was tired of kicking tires and my realtor found it and after doing number everything made sense.

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

My realtor found it while I was playing baseball during the season. She showed it to me over FaceTime, and we negotiated it down a little but numbers made sense.

How did you finance this deal?

Conventional loan

Lessons learned? Challenges?

I immediately hired a property management company for just the one duplex and after a couple months and a few minor maintenance calls that cost well over what they should have, I started managing myself and have my own team.

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

yes, Kristina Rhodes with FC Tucker in Evansville, IN. She is amazing, and she and her partner both have rentals so they understand.

I bought my first deal last year ( a duplex ) which since has been a great investment. I recently purchased small 2/1 in same area that is basically a complete gut. I was told not to by the Mrs. but after running the numbers several times, I made a stupid low offer and the buyers the wanted out. They didn’t want to deal with the renovation. Their was water damage that scared everybody that looked at property, but it was an all brick home on slab. We are on week two of reno and we are opening it up and bring it back to life. I plan to use the BRRR method on this and just found out the house next door is for sale and might be next in line. Happy hunting.

I haven’t made any more purchases since. I’ve been actively looking, but I’m unfortunately still dealing with my concussion. Due to all that most of my focus has been trying to get better mentally and physically. 

To answer your question, Evansville is still expanding. There are others on here that I’m sure can elaborate more. 

I'm still technically in baseball, as I'm still rehabbing the concussion but the Dr. told me best to stop playing. I have family and two lil boys and am ready to hang them up. I was fortunate enough to play for a very long time, travel, support a family and ultimately make it to the majors but now on to bigger and better things. Thanks for the support