All Forum Posts by: Payton Pearson

I am a digital nomad. I can live wherever I want, and spend the maximum amount of time with my family. My father has had 14 strokes and has Vascular Dementia and Alzheimer's. It's nice to be able to live in California with them, and own properties in Ohio.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $10,000
Cash invested: $12,000

I bought this property wholesale from my property manager, who is also doing light renovations on it to make it legal, safe, and rentable. As time goes on, I'll make the renovations Gucci, but at the moment, the goal is to remove a blight from the neighborhood while simultaneously providing a dignified place to live for Dayton residents.

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

The crucial points for which I am looking with my current acquisition strategy is whether the location is at least "blue-collar" in quality level, and if the foundation is sound. If the property meets these criteria, and the property is $10,000 or less, I will purchase it. Even if I let it run fallow for a few months to up to a year in order to gain capital for renovations, other expenses are so minimal that it hardly matters. I OWN it!

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

Property manager. Made a deal with him to give him some money on top of the purchase price for wholesale commission, and then some money for renovations. He will, of course, also get the monthly management pay.

How did you finance this deal?

Paid cash for it.

How did you add value to the deal?

The property is eventually going to be completely renovated, but for now, we are just making it legal, safe, and livable. When it comes down to brass tacks, we are removing a blight from the neighborhood.

What was the outcome?

So far so good. Property renovations are going smoothly, and it should rent well when completed.

Lessons learned? Challenges?

Always build into your finances higher-than-anticipated renovation/repair costs. A surprise $5,000 expense for re-running electrical popped up, and had I not had the funds, I would have had to wait a month or two longer to get the property rented. But again, with my strategy, allowing the property to run fallow for a while is not a gigantic issue, though should be avoided if possible.

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

Property Manager: Steven Leopold.
Wholesaler: Steven Leopold.
Real Estate Lawyer: Joe Lucas.

Very nice!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $15,000
Cash invested: $25,000

This is a basic renovation to make the property rent-ready. Eventually, I plan on super "spiffifying" this property, but for now, I want to remove a blight from the neighborhood and get it fixed up and livable.

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

It was brought to me by my property manager, in need of repair and renovation, but the bones of the property were good. I have started my own form of syndication (not formal, just investing with family), and wanted to remove a blight from the neighborhood while at the same time building momentum for my new business partners.

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

I found this property through my property manager, who is in touch with a real estate owner in the area that does wholesaling and real estate law as well.

How did you finance this deal?

I bought this property cash, but received a sum of money from a family member who is going to invest in it with me. His name will also be placed on the deed.

How did you add value to the deal?

I removed a blight from the neighborhood, and did basic (and eventually Gucci) renovations on the property. I got it rented and livable.

What was the outcome?

It hasn't reached completion yet, but it will rent out for $800/month or more.

Lessons learned? Challenges?

Sometimes you have to be flexible on the tactics and inflexible on the goal. Don't forget why you're in real estate. For me, I'm trying to beautify the world, and what better way to beautify the world and provide people a dignified place to live than removing a blight from a neighborhood?

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

My property manager: Steven Leopold.
Real Estate Lawyer: Joe (don't know his last name!). Ask for Joe if you get in contact with Steven.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $2,400
Cash invested: $52,400

This is a BRRRR property. It is a 50k renovation. Property will probably be worth around 75k after all repairs, and will rent out for around $850/month. I know, not super sexy, not the most amazing deal you can imagine, but in the difficult market right now, it's pretty nice. Also, I'm seeking to increase monthly cash flow while beautifying the world--I'm not super gung-ho about over-leveraging, especially in this market.

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

It scarcely matters what kind of back taxes a property has, other liens, etc. if you can buy it for less than $3,000! Even if you let it stay fallow for a year or two, it doesn't really make a difference. You can renovate it on your own schedule, and don't have to lose hair over immediately getting an ROI. This is a decent idea for those who have the resolve to actually accomplish the task, and not just completely forget about it.

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

I found it from my property manager. Originally it was selling for $1,500, but the wholesaler pulled a fast one... I didn't mind, even though it was sleazy, because it was still cheap. I'm not going to split hairs over $1,000.

How did you finance this deal?

Bought cash, renovated cash.

How did you add value to the deal?

Fully renovated, and removed a blight from the neighborhood.

What was the outcome?

Renting out for over $800/month, pure cash flow. Taxes aren't very high--only about $100/month. Insurance is under $30/month.

Lessons learned? Challenges?

If you can buy a property for under $3,000 in a market where properties are renting out for around $600 to $900/month, why in the world would you not buy it?! What else are you going to do with that $3,000? Sure, maybe you can leverage it, but it's really very little money.

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

Steven Leopold, my property manager.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $36,000
Cash invested: $36,000

I bought this one cash through a wholesaler. Property is probably worth about $70,000. Bought for $36,000, so instant increase to overall net worth. My goal is to beautify the neighborhood, and control of assets is the most important thing at this point when it comes to investing, so I'm likely not going to sell this for a long time.

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

This market is a strange one and requires flexibility with regards to one's strategy. While my business model is primarily buying multi-unit properties between 2-4 units for the next 3 years, cash flow will work best at the moment, with so much instability in the job market, logistical chains, and more.

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

My friend Steven Leopold, who is also my property manager and a fellow real estate investor, directed me to Steven Howell, who was wholesaling the deal.

How did you finance this deal?

I had the cash on hand, and paid for it outright.

How did you add value to the deal?

As I stated earlier, the property is worth probably around $70,000, so it was an instant value add for me. But, in addition, I intend on constantly improving the property over time, and buying as many properties in its vicinity as possible in order to gentrify and beautify it as much as possible. I'm not doing this necessarily to make money--though that will happen--but to give people a more dignified place to live.

What was the outcome?

I now own the property outright, with a stable tenant on a 2-year lease.

Lessons learned? Challenges?

Flexibility is the key to success in a market like this.

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

Steven Howell - Great wholesaler in the Dayton area.
Steven Leopold - Great property manager and fellow investor in the Dayton area.

Automatic bill pay and Venmo.  I also use Airbnb.

I have a property manager and a whole slew of cleaning personnel that can clean when necessary.  It works out pretty well!

When it comes to brass tacks, you will need to get employment of some type in order to gather enough seed money to be able to build a real estate portfolio.  If you haven't already, look into getting summer jobs when you're out of school and/or part-time year-round jobs when you're not in school.  Save every last scrap of money that you possibly can, and change your perspective on money.  It might look and feel like it at the moment since you're only 15, but, for instance, $10,000 is NOT a lot of money.  So KEEP SAVING.

Then, once you are nearly 18 years old, look towards starting a good real estate agent licensing course.  That way, when you're 18 years old, you can take the licensing exams, become an agent, and start working directly in the industry, making much more money on commissions, all of which can be saved and then used on buying properties yourself.

 Thank you!  I'm expecting anywhere from 60-80% occupancy.