All Forum Posts by: William Hamburg

No, we found it for sale by the owner on Loop Net and ran the numbers. Once we realized it was a no-brainer, we reached out to some other RE investors we knew that had some cash. I think the biggest thing that messed me up as an investor, in the beginning, is I thought I needed to find people with money first then deals. It wasn't until I sat down with my accountant (now my mentor) that he said, "Will, I promise you if you find a deal worth doing you will never have a problem finding the money". Boy was he right! The moment I shifted my focus on finding deals is when my investing career exploded. Now, I am looking at 50+ units. Even if I am a very small percentage for putting the deal together I am happy and it will help me attract more deals. 

Hey guys! For this project, we have 5 partners. 1 partner ended up being 50% which was the only way we could pull this off. The other 4 of us are 12.5%. That way I only needed to put 75k down. Tenants have never missed a payment and as we look at converting to Section 8 that could give us another 500/mo. Right now I make 750/mo like clockwork. We were blessed to have such a great property manager that came with the purchase. Each time a tenant moves out we remodel the unit and raise the rents.

Hey Tommy, I'm not sure if that exists but I've always liked Hubspot. I've used it for a multitude of industries and I guarantee if you contacted them they could show you how you can accomplish what you are trying to do. Good luck!

Investment Info:

Large multi-family (5+ units) buy & hold investment in Cave Creek.

Purchase price: $2,244,000
Cash invested: $75,000

Purchased 22 condos for an avg. of $102,000/unit in December 2020.
Avg. Monthly Rents $24,000.
Converting to Section 8 would increase rents to Avg. $33,000/mo.
Receiving offers between 161,000-168,000/unit
Current equity if we sold project today: $1,300,000
Just turned down an offer for $3.55M.
86% CoC return annually

Investment Info:

Large multi-family (5+ units) buy & hold investment in Cave Creek.

Purchase price: $2,244,000
Cash invested: $75,000

Purchased for an avg. of $102,000/unit in December 2020.
Avg. Monthly Rents $24,000.
Converting to Section 8 would increase rents to Avg. $33,000/mo.
Current equity if we sold project today: $1,300,000
Just received an offer for $3.55M.
86% CoC return

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $279,000
Cash invested: $50,000

Fix and flip in Cottonwood, AZ

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

Price and how long it was on the market.

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

MLS

How did you finance this deal?

Conventional financing

How did you add value to the deal?

100% remodeled. New floors, lights, switches, fans, paint, appliances, floorboards, closets, doors, hardware, landscaping, etc. We also enclosed the 750 square foot garage and re concreted the backyard with gravel and turf. We may have over improved it for the neighborhood but now neighbors are starting to take pride in their homes and improve, paint and take better care of their properties.

What was the outcome?

Added $200k in equity in 2 months.

Lessons learned? Challenges?

Never hire contractors by the hour ever again. We went way over budget on this one because we paid 2 new guys by the hour. Luckily we had enough room by purchasing the house at such a great price to make up for it.

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

Yes

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $465,000
Cash invested: $35,000

Buy and hold single family home in West Sedona.

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

Off market

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

Talking to neighbors

How did you finance this deal?

Conventional loan

How did you add value to the deal?

New floors, enclosed garage, new roof, solar, pavers in back yard, new lights, fans, outlets, light switches. New paint inside and out. By enclosing the garage we added another 500 sq.ft. of livable space.

What was the outcome?

Long term furnished rental

Lessons learned? Challenges?

Don't over improve unless you know it's worth it. In this case it was worth it

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

No, represented ourselves.

Investment Info:

Single-family residence other investment.

Purchase price: $550,000
Cash invested: $50,000

Short term rental converted into long term furnished rental.

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

Price

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

Garage Sale

How did you finance this deal?

Partner

How did you add value to the deal?

New floors, fully furnished, hot tub, new garage door, paint, stucco, etc.

What was the outcome?

Stable high end long term rental

Lessons learned? Challenges?

Do the math on short term rentals. Rarely is it worth it if you have a property manager and high utilities. Once we removed the manager and had the tenant pay all utilities we started to cash flow positive and we never received another call about something again. :)

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

Yes

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $434,000
Cash invested: $66,000
Sale price: $600,000

Fix and flip 4 plex in Mesa, Arizona. Property needed a lot of work and the area was a little sketchy.

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

The cap rate at the accepted offer.

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

We ran the numbers on 80+ properties and FINALLY found this one and the other 4-plex posted here.

How did you finance this deal?

4 Partners. 25% down payment.

How did you add value to the deal?

The market rents were very low and the building recently appraised more for listed price. We visiting the property and could see it didn't many major repairs it was just a poorly run apartment complex. Lots of trash everywhere. People blasting music, stucco missing from everywhere, etc.

What was the outcome?

Fixed it up, raised rents on new tenants to market rates, fixed the roof, replaces air conditioners, washers, dryers, hot water tanks, stucco repair, and paint.

Lessons learned? Challenges?

Don't buy property in sketchy area. No matter the CAP rate or income potential. Own properties you would live in.

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

Yes

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $333,000
Cash invested: $88,000
Sale price: $550,000

Purchase a 4 flex, fixed it up, placed new tenants and raised rents all through covid. Sold it at a great profit in 13 months.

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

The cap rate and low purchase price.

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

We ran numbers on about 80+ properties and literally the day we gave up and called our partner and said there are no properties available in this area we need to change strategies is the day we found this and the other 4 plex listed on here

How did you finance this deal?

4 partners, 25%. This made it easier for us to help with down payment and repairs.

How did you add value to the deal?

Updated kitchens, hot water heaters, landscaping, paint and cleaned up a very neglected property.

What was the outcome?

A successful flip!

Lessons learned? Challenges?

It was very scary for a while there. When 3 out of 4 tenants weren't paying I thought to myself, what were we thinking? But because we bought it right and had a good team of contractors, we were able to make a nice profit on this and the other 4 plex in Mesa.

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

Although I am a licensed realtor we decided to work with a local realtor.