All Forum Posts by: Quentin McNew

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $68,450
Cash invested: $29,000

Purchase: $68,450
Rehab: $29,000
All in: $97,450
ARV: $144,000
Financed: $115,200
Rents: $1200+
Annualized return: Infinite Return

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

It was located in my hometown and had great bed to bath ratio. 3 bedrooms and 2 bathrooms appeals to owner occupied audience and investors.

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

Reached out to a Craigslist post when recognized the price was low for the town it was in.

How did you finance this deal?

Private money paying 4 points and 11% interest

How did you add value to the deal?

Added back deck, busted out wall to install Pella sliding glass door, new vinyl plank flooring, new paint, and new Whirlpool appliance package.

Lessons learned? Challenges?

I am buy and hold everything investor, unless doing a 1031 exchange and upgrading to commercial units. I know some people will take $30,000 profit and flip this, while my philosophy is taking the $300 month cash flow. I don't want lazy equity and like transferring it as down payments or collateral to other projects.

Unlike flipping.........When holding the property it allows me to still have the equity which can later be tapped into as leverage for other properties.

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

I am real estate agent and recommend to stick with local banks for local deals.

Nice!! Seems like you are off to great start. 

Very easy to hit 1% rule here in midwest and look forward to hearing from you next week. 

Thanks

Hello @Michael J Hartnett Jr, 

I agree with @George Skidis about updating profile to help see where you are and where you want to go. 

I am investor here in Champaign and have my real estate license. Feel free to send me a message on here and we can meet up to see what your goals are. I would be happy to help. Usually after 4pm works best, but I am flexible. 

Thanks

I specifically remember a post from @Jay Hinrichs warning people (and me) about that business model and saved me from purchasing 3 years ago after reading and more due diligence. I got tied up into his podcast, must be credible, etc......I think his podcast had valuable content and everyone should take ownership they could of done more due diligence. The BiggerPockets forum transparency comes through again!! Can't say I wouldn't of bought one from them at that time of my investing journey without reading a forum on this site.........from experienced guys that have seen many cycles and haven't faded away. Appreciate you all

How do you know how much to charge the new member of the LLC? I am thinking about adding a member to my LLC, but not sure how to go about valuation.

Do you go off cash flow? 

Cash amounts invested? 

Assets - liabilities? 

Thanks in advance

How do you know how much to charge the new member of the LLC? I am thinking about adding a member to my LLC, but not sure how to go about valuation.

I know a couple other real estate investors and myself use Bryan James with Martin Hood in Champaign. 

Shoot me a message if you want to know my network local. I recommend going to REIA and getting other perspectives as well. I went through a lot of contractors, etc, but finally think I got my team established for the long haul after trial and error.

Nicholas Gray I can tell your going to be successful from your formal education background no matter what you do. This is a subjective question that has many options obviously. Being passionately curious and persistence will drive you forward. 1. I think finding a mentor in the real estate niche you want to do as a career and go work for him or find way to bring value to him. 2. Or join a mastermind that you have done due diligence on. I personally made my biggest jump in my business when I spent a week around Robert Kiyosaki for a real estate event and came back saying.......... I’m burning the ships and going 100% all in with real estate. It’s easy to get distracted in this game with all the options in the industry. Happy Investing

@Michael Andre

I just used my VA loan in Champaign as well. I did Army ROTC program here at the University of Illinois and decided to jump into real estate after graduation.

As long as you have the intent to live in the property for more than a year, then you should be good (just confirm with your lender). Job change, family change, etc happen, so don' t think the 1 year is a hard rule like in your case. 

@Inga Fonder 

I personally only use local banks for relationship and long term outlook reasons. I think it makes the most sense to start building trust with someone local you can visit in person to clarify documents, etc. 

I have looked at mortgage brokers for multi family deals like Old Capital Lending, but not for residential.