All Forum Posts by: Henry R.

@Frank Patalano, Thanks Frank, great advice!

@William C. Yes you are correct, we try as much as possible to stick with off market deals. That's how we got 2 of them.  In your case you have to do what works for you.

@William C. Understood

@William C. I like what @Jason D. said, also if you don't start low enough you don't know how much better of a deal you can get. Like Rich Dad Poor Dad says, " if you aren't embarrassed by your offer you offered to much". 

@Frank Patalano, For us it's not only finding the deals but coming up with the money. We bought one 3 unit with private money just because I vented to a friend who flips for a living, the bank was making us and the contractors jump through hoops. My friend loaned us the money bought the property and refi cash out (Conservatively). We borrowed money from my wife's mother for a joint venture flip. That went well. But now my wife's mother is not feeling it  or in the mood to do it again. We are still looking, made an offer on a single family this week, however we got turned down. We are on to another one, we will find the money some how. So moving at a snails pace. Thanks for reading!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $215,000
Cash invested: $395,000
Sale price: $454,000

Last year my wife and I sent out a letter to the owner of this property that was vacant for 5 years. We brought the property to our friends who are seasoned Flippers "Garth & Gina". We asked them if they would partner with us on it after viewing the property. We were delighted when they said yes. Below are a few pictures of the property it was our first joint venture flip and would not have been able to do this flip without our friends who are very good at what they do.
Thanks for reading
Henry

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

The location was great, know for very good schools and close by to where my wife and I live

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

We sent out a mailing to the owner. We also brought the deal to friends who flip for a living.

How did you finance this deal?

All private money

How did you add value to the deal?

Doing a full rehab

What was the outcome?

Sold the property to a very happy new home owner

Lessons learned? Challenges?

It's very important to price your house right and, do not take the appraisers numbers as final, we didn't!

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

Yes, the couple we worked with his wife is a RE agent and this is bias I'm sure my wife is also a RE agent

@Austin J. As far as this property goes not much you can do. Look at the other properties and see if your taxes are higher for the same types of properties( comps) then contest your taxes to get them lower. See if you can raise your flood insurance deductible to lower your cost on the insurance overall, anyway you can cut your "fixed" expenses on this house I would look into doing it. 

As far as purchasing another property I wouldn't go to fast, we bought a foreclosure in a B neighbor hood a 3 unit for about 35cents in the dollar, we used private money and after the repairs we used a bank to do a refi cash out to pay off the private money loan. You have to do your due diligence to know what the ARV is that's very important for the cash out refi and to pay off the private money loan at the end. Look for add value properties in good areas. That's my 2 cents.

All the best

@Latimer Luis, Happy Birthday!!

@Latimer Luis, As you can see the BP people on here are basically telling you to push though it as you should. You mention Rich Dad, Poor Dad, there is a line in the book that says, not I can't but how can I so you can, we all learn on here and once you get past it you'll look back a realize it was not as big of a problem as you first thought. 

All the best.

@Aaron Millis Hey Aaron that's a great story congrats! Thanks for sharing!