All Forum Posts by: Owen Dashner

Investment Info:

Single-family residence wholesale investment in Omaha.

Purchase price: $145,000
Cash invested: $300
Sale price: $181,000

Contributors:
Angela Thiel, Brandon Tauber

This was a wholetail of a 2003 Celebrity starter home in a subdivision by Lake Cunningham off of 80th Street in Omaha. We bought the house directly from the seller who found our website and wanted an easy sale and no hassles. We ended up accepting an offer after a week or so on the market for $181,000 minus some seller costs of around $5,500. After commissions and closing costs, we will net around $24,000 profit.

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

It was honestly about as easy as you could hope for. I think we had one minor repair prior to closing. The seller had everything cleared out and even cleaned it (rarely happens). The house was in really good shape, mainly needed paint and some flooring, but certainly livable. If it were any other year, I would have spent a little money on some things to bling it up a little (hardware, kitchen/bath flooring, etc.). But, there is so little starter home inventory right now, it didn't matter.

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

This was a seller who Googled "sell my house fast in Omaha" and found our site. She was wanting to sell quickly because she had already moved to her new home.

How did you finance this deal?

Line of credit with 5 Points Bank.

How did you add value to the deal?

We really didn't, we had 1 repair that was about 300 bucks is all.

What was the outcome?

The house sold within a week for full price (net). We just closed on the sale today, netting about $24,000 profit.

Lessons learned? Challenges?

The lesson learned here is, when in doubt, make offers! We told the seller we thought she should list the house and would be able to sell it quickly for more money than we could pay her. We honestly thought there was about a 10% chance that we would get the deal. She called us back a couple days later and accepted our offer with no negotiating.

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

Angie Thiel with BHHS was our listing agent, as usual. Super smooth listing, great pics and easy sale.

@Kerri Kliewer are you a member of the Omaha REIA and Omaha Real Estate Meetup FB groups? Great people in both with lots of local knowledge. Both groups get together at least monthly (either in person or virtually).

Feel free to contact me if you need anything as well.

Good luck!

Investment Info:

Single-family residence wholesale investment in Omaha.

Purchase price: $135,000
Cash invested: $2,000
Sale price: $165,000

Contributors:
Angela Thiel, Brandon Tauber

This was wholetail deal that we recently bought in the Keystone area of Omaha. It was a 3 bed, 2 bath, 1 car garage in good shape and livable, just needed a little updating and minor repairs. We bought it directly from the owner who wanted an easy deal, didn't want to do any repairs, and wanted to pick the closing date to coincide with his daughter moving out. Nice house in a good area with a huge/deep lot.

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

This was a good house needed minor repairs in a good residential area in Omaha. We got a great deal on it, making it a perfect wholetail deal.

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

This was a lead that came from our PPC campaign. We dealt directly with the owner, explaining that he could likely sell it fairly quickly and make more money if he listed it on the MLS. But, he wanted ease and certainty of the sale and we were able to negotiate a good deal since we were paying cash, as-is.

How did you finance this deal?

We used our LOC from 5 Points Bank.

How did you add value to the deal?

Really all we did was remove some furniture that was left behind and gave it a good cleaning.

What was the outcome?

We ended up listing the house for $169,900 and sold it for that price, with some seller concessions of about $5,000. After closing costs and commissions, we will end up with a profit of around $22,000.

Lessons learned? Challenges?

We got the house under contract and had to wait a couple of months to close, which ended up being not a huge deal. It normally always sucks trying to sell houses in November/December in Omaha, but not this year. We had it listed for less than a week and got just a little less than full price.

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

Angie Thiel, our listing agent with Berkshire, as usual.

Holy cow! That is an awesome success - way to crush it!

Are you a member of a local REIA or investor networking group? There should be several in a city the size of Atlanta. Join some local REI Facebook groups and create a post asking for lender referrals from other investors who are doing the BRRRR method. Create an LLC, put a personal financial statement together, and have your tax returns ready so that you can email them to the lenders. You are going to want to deal with commercial lenders at smaller banks and credit unions who do portfolio loans. Way easier to deal with and faster to complete loans.

Refinish them, without question. Make sure you have someone who knows what they are doing - you can definitely tell if someone doesn't.

@Tim DeFor, go to FB and search for "Omaha REIA", and also "Omaha Real Estate Meetup". They are 2 really active groups that get together once a month for official meetups, plus lunches, happy hours, etc.

DM me if you need anything.

Good luck!

In typical Omaha fashion, the weather went from 90 degrees 2 weeks ago to 16 degrees today and 3 inches of snow and ice.

So, if you have vacant properties or are about to buy one that is vacant, don't forget to turn on your furnaces, disconnect hoses and winterize sprinklers! 4 out of 6 of my vacant flips had the furnace off - yikes!

@Jerry Hodges, how did you buy the property? Cash or do you have a note on it? If you paid cash, just ask around for referrals to small banks or credit unions that have setup LOC's for investment properties for other investors. Then just call them and let them know you have a property you'd like to get a LOC setup for. Get your LLC created, the bank will ask you for your personal financial statement and 2 or 3 years of tax returns. They will record a lien on the house with you as a personal guarantor when they setup the LOC. I do these all the time.

The refinance part of BRRRR pays off the original money you owe on the house, if any (whether mortgage, hard money, private money), plus hopefully most or all of any cash you put into it. So, you will now have 1 mortgage on the property to pay moving forward because all of your previous money owed was replaced by the new mortgage after refinancing. What specifically do you not understand about the refinance part?