All Forum Posts by: Robert Arroyo

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $335,000
Cash invested: $35,000
Sale price: $465,000

On this property I helped a local investor by managing the project. I was able to turn this cosmetic fixer around in 45 days!

How did you finance this deal?

The investor I worked with used a hard money loan.

How did you add value to the deal?

Cosmetic Fixer

Investment Info:

Single-family residence fix & flip investment in Longview.

Purchase price: $95,000
Cash invested: $101,111
Sale price: $269,000

This flip was through a partnership and was a complete down the studs rehab that transformed this property and put it on par with the new construction in the area.

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

I contacted a Wholeseller for this property. They initially wanted 110k and I got them down to 95k.

How did you finance this deal?

Private money mixed with personal cash.

How did you add value to the deal?

Added an additional bathroom on the first floor. Complete down to the studs remodel!

What was the outcome?

70k+ net profit

Investment Info:

Single-family residence fix & flip investment in Stockton.

Purchase price: $225,000
Cash invested: $45,000
Sale price: $355,000

This was my first and longest flip to date. This is what got my real estate career started!

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

Found this distressed property through a family friend.

How did you finance this deal?

The seller carried the note and I was responsible for the rehab cost and mortgage. Anything past a certain number I was allowed to keep for profit.

What was the outcome?

I did something that was a bit risky. I leverages my entire savings account and even maxed out several credit cards. Net profit wasn’t too great but the knowledge that was acquired was life changing!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $62,000
Cash invested: $38,000

This house was purchased from the previous owner during mid remodel! The property was a Distressed fixer that was brought to my team and I from a local. It needed a TON of work! Not quiet a down to the studs remodel but it needed a significant amount of work.

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

A local gave us the lead on the property, I spearheaded the traction by cold calling the owner. He initially wanted 75k for the property but after some back and forth I was able to get him down to 62k due to the condition and amount of work needed for the property.

How did you finance this deal?

Local lender construction loan. We received 22k+ at closing for repairs!

Investment Info:

Single-family residence buy & hold investment in Hallsville.

Purchase price: $75,000
Cash invested: $45,000

This property was acquired in august of 2020 full cosmetic fixer. Had to repair the floors, kitchen, countertops, paint, bathroom/ showers, finishes, plumbing and also the siding.

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

Referral from a friend

How did you finance this deal?

100% private money used, repaired the entire property and did a cash out refinance. Got 80% LTV with an appraised value of 155k.

Paid off the private loan and now it’s a great cashflow producing asset.

How did you add value to the deal?

Cosmetic fixer and repaired many functional issues with the property.

@Garron Gibbs

It’s always good to go into the rehab with a clear image of what NEEDS to be done in order for the house to sell/rent such as: Roof, Dry rot issues, mold and so on. Then address the aesthetics and while it’s always good to have a budget in mind it’s also important to look for little pieces of the rehab that can bring great value to the homes appraisal even if you have to go a little over budget in some areas. I always go with getting at least 3 quotes, if someone doesn’t return your calls promptly expect their work ethic to reflect their drive. It’s normal to give a 10% upfront cost for your GC to get materials and pay their workers (never pay in full.) Also going into this process with an idea of what you need from your contractors will help you out a lot. I did some of the work myself and sub contracted out quiet a bit on my first home remodel. I’m about 80% complete with my first flip and I’ll give you an idea of what the proper steps should be in the rehab process (some of these will vary depending on need)

Read David Greenes book on long distance real estate investing he breaks everything down in great fashion! Even if you aren’t investing long distance he helps you identify great members for your “team” to be successful

1. Windows

2. Drywall (while everything is open now is a good time to do any plumbing/electrical fixes)

3. Tape/Mud

4. Texture

5. Paint

6. Bathroom remodel / subfloor if dry rot or termites are present

7. Kitchen remodel / cabinets

8. Floors are always last!!!

Trust me I did thing in a complete different order but it’s a learning process. Hopefully this helps reduce your learning curve happy investing!!!

So I’m working on my first flip in the Central Valley, got a killer deal on a distressed property from a family friend. The rehab is going at an average pace but we’re almost ready to tackle....this really awkward bathroom! The toilet is on a throne which seems unsafe and not up to code, I will post a picture so everyone can see the awkward bathroom as well as some of the progress. I need some serious advice and guidance on what I should do for this remodel. If anyone can help it would be greatly appreciated and I will most certainly find a way to pay back the favor!

@Caleb Heimsoth "CA has one of the highest income taxes in the country. Texas has some of the highest property taxes. So you pay high property taxes and high income taxes. There’s no state income tax in Texas but you don’t get that since you don’t live there " I understand now, so it's a combination of both. Thank you for clearing that up for me I really appreciate your advice!

@Caleb Heimsoth "I would encourage you not to buy in Texas if you live in CA. You are committing toRaising your tax bill much higher then it would be in other states." Forgive me I am still new and learning but when you say I will be "committing to raising my tax bill" what specifically does that pertain to? Is it property tax? Or my taxable income? I have contemplated other areas as well such as arizona, pennsylvania, ohio and other markets in the midwest. May I ask where you would recommend state wise to invest and why?

@Alina Trigub I agree completely about the entire "boots on the ground comment" that is part of the reason why I decided to create a BP account for networking purposes as well as a potential learning tool. Thank you for your advice it is most appreciated!