All Forum Posts by: Paul Leason

That looks great Julie!   Whats the address and price point?

I'm not going to read the rest of the answers so as not to skew my opinion though I think my answer will the same as many others: BRRRR

WHY?  Because in this instance if you refi at 75% you can pull out $90k and you only have $82k invested. Sure you’ll pay mortgage fees but you’ll still be zero cash into this deal and will be able to do the same again and have appreciation over the years in 2 properties.  

Question: If I gave you a property with 25% equity, with a reasonable cash flow and the potential for appreciation, would you turn it down?!  Doubt it.  

Leverage wisely and multiply.  Real estate is a long term strategy and one where you want to build your portfolio.  

SUN Title Agency for Grand Rapids. 

Courtney, I think it more depends on the motivation of the seller over the location. If someone’s motivated to sell, contracts are written that day and then it’s over to you to find a buyer.  If you’re well organized and have a good network, you could assign that contract in days and then Tirle companies here in Grand Rapids can close it a week.  I typically offer cash in 2 weeks on my cash purchases.  

Then some sellers drag their feet, as the motivation is not there yet.  Maybe when the next violation or tax bill comes through they get more motivated.  I have worked some cash purchases for a year before eventually making the transaction, as the seller wasn’t ready. Sometimes you need to let them season for a while!!!

Welcome Courtney!! Since tour in Grand Rapids you HAVE to go to the RPOA Confernce at DeVos Feb 21-23. It's free and a must attend event for anyone in REI. Good luck with your class. Reach out if you have any questions. Which brokerage are you heading to?

@Jason Carter you’re welcome!!!  Happy to increase your value!!

@Travis Dreyer we structure it that:

I find the property and scope the project cost. 

My Investor pays for the property

I manage the rehab, doing some of the work myself and then manage the sale. 

Net profit, which includes my RE Commission, gets split 50/50. 

So my ROI is higher than his, as my cash invested is a lot lower. However my time involvement is a lot higher. But that works for me!

Investment Info:

Single-family residence fix & flip investment in Grand Rapids.

Purchase price: $165,000
Cash invested: $40,000
Sale price: $238,000

Modernization of a larger SFH. The budget was always going to be tight on this and we didn't achieve the Sales Price we were hoping for. Refinished and stained hardwoods, new vinyl plank flooring, new Kitchen and updated bathrooms, fresh paint.
www.PaulLeason.com/18044229

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

There was an opportuity to make a small profit here and potentially a good profit. The house was well laid out, in a good area, had solid bones and mechanicals, but needed modernization.

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

A fellow agent brought it to me, as he knew I could buy it for cash, close fast and bring the house back to life.

How did you finance this deal?

CASH with my Investment Partner

How did you add value to the deal?

Modernization of the whole house, but especially the Kitchen and bathrooms. The Master bath was very old and the shower was inoperable and it felt very closed in. We opened it up and made it feel more spacious by using a glass enclosure in place of a stud wall and tile.

What was the outcome?

Average profit, but not really worth the effort and risk.

Lessons learned? Challenges?

Should have got it to market earlier before it slowed and maybe spent some more time/money on the garage. I don't think the main listing picture drew people in either. Should have changed it sooner.

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

I am Agent and Owner.

Investment Info:

Single-family residence fix & flip investment in Grand Rapids.

Purchase price: $105,000
Cash invested: $30,000
Sale price: $180,000

Bi-Level SFH, built in 1999 in a n area of older houses (1900-1950). Cosmetic upgrade, including paint, flooring (3mm Vinyl Plank and carpet), updated bathrooms, painted kitchen cabinets and added Butcher Block countertops. 1 week on market and accepted a Full Price cash offer.
Link to listing: www.PaulLeason.com/19001323

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

The Prooperty was built in 1999, so had a poured concrete foundation, modern breakers and copper plumbing. Vinyl siiding and windows. This was a cosmetic upgrade project with a great format for a student rental. GVSU College is 15min walk away

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

On the MLS. Negotiated with CASH and no inspections and let the Listing Agent know that I was reliable and would close FAST and would work with the seller.

How did you finance this deal?

CASH, working with my investment partner.

How did you add value to the deal?

Cosmetic upgrades with mid-level quality products, in keeping with the neighborhood.

What was the outcome?

A good one! A nice profit for myself and my CASH investor partner.

Lessons learned? Challenges?

Getting the contractors to complete the project on time. Seems like 75% gets done quickly and the final 25% takes just as long.

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

I am the agent and the owner.

A great start to learning about REI is the RPOA Annual EXPO at DeVos on Feb 21-23 It's a great event for Networking and learning in various topics. And the best part???? IT'S FREE!!!

I’ll be there, hanging out, networking and always learning so be sure to say hello.