All Forum Posts by: Robert Flowers

Thank you Mindy...

Investment Info:

Single-family residence buy & hold investment in Memphis.

Purchase price: $12,000
Cash invested: $24,000

This particular property was a burn out. 3 beds 1 and 1\2 bath.. Out of state investor was referred to us. This investor was looking for cash flow. However, the property had to have a major rehab, $24000 to restore interior damage. Property is now producing $2000 per month with an additional bedroom added later also guaranteed through one of the non-profit organization Flowers and Associates partner with.

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

I knew I had the Non-Profit Organization waiting for the property to be completed. And it was a good deal for a buy and hold investor

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

I was referred to the seller by a client. He wanted to sale the property because he wasn't able to keep up the taxes and lawn cuts that was enforced by the City code enforcement..

How did you finance this deal?

All Cash from investor I sold it to..

How did you add value to the deal?

The Flowers and Associates team got the property up and running and producing $2000 per month in rent. All veterans whom in which keep the property immaculate.

What was the outcome?

Investor was incredibly happy and went on to purchase 2 more properties, utilizing the same strategy...

Lessons learned? Challenges?

It is always Code enforcement and a electrician that was trying to gouge me... (I guess he couldn't see the vision ahead)

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

None

I lease the rooms individually to veterans. In that lease it is written up as shared independent living. A copy of that lease is sent to the non-profit along with an invoice for that tenant... You can use your current lease, however, modifications like utilities and whats included with the move in of the tenant..  For example, are you going to include cable, are you going to include house keeping..... Keep in mind that you are receiving rent from individuals whom are  sharing a house with other tenants that are paying rent.

I hope this helps...

Robert Flowers

Investment Info:

Single-family residence buy & hold investment.

This 3 bed 2 bath was bought and sold to an out of state investor, whom was looking to invest in Memphis. The property was rehab to accommodate veterans. The property is currently producing 3 times the market rent in this area guaranteed through non-profit organizations

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

It was a good deal for my client and it had the cash flow potential along with meeting the Non-profit organization specifications

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

Through a private owner. All cash at a deep discount. We were able to sale the property purchase, still at 50% below market value.

How did you finance this deal?

All Cash

How did you add value to the deal?

Rehabbing and cash flow production

What was the outcome?

A great property that is producing $1500 a month guaranteed in rental income through a Non-Profit Organization for Out of State Investor. Also giving 3 veterans a safe and quality place to live.

Lessons learned? Challenges?

Getting code to approve electrical and plumbing.. Backed up from other inspections

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

None...

Investment Info:

Single-family residence buy & hold investment.

This property is currently owned by a client that purchased the property in a tax sale. Over the years decay had set in. Our Team Members at Flowers and Associates was able to turn this property around for the client and is now scheduled to moved in by a vet through one of non-profits we partner with.

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

Investor from Out of State had this property in inventory and did not know what to do with it. After having several conversations with investor. Flowers and Associates proceeded to get the property up and producing with veteran from non-profit org.

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

The deal found us. It was already owned by investor from out of state. Out of State Investor Needed someone to rehab it and get it producing

How did you finance this deal?

It was all Cash

How did you add value to the deal?

Turn the worst property on the street into the best looking one and a happy investor

What was the outcome?

Rehabbed Property with a Veteran tenant from Non-profit Organization producing 650 a month income guaranteed.

Lessons learned? Challenges?

Bringing it up to code. Plumbing and Electrical re-worked

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

None. Just Flowers and Associates and the Owner

@Nadine Delille Real Estate is only easy when you master a particular strategy to purchase and hold or purchase to sale. First, you must determine what you want. What is your current situation. What short and long term goals you have in mind.   It just can't be Real Estate Investing. Example: Determine if you want cash flow for long term or to flip for short term. Cash flowing properties (rental property) is delayed gratification, however, it is your path to wealth if you know how to control the cash flow and reduce risk of bad tenants. Flipping property (whole selling) is a lot quicker to generate a lump sum of funds. However, it is very competitive. and you must know what you are doing.. 

Study both while keeping in mind what your end goals are. Not to be discourage... Both strategies are great. 

Rental Property: With rental property, you have 2 things to worry about. (tenants that won't pay rent) and (damaged property from bad tenants) You can reduce this risk by the following: Increase your cash flow by renting to tenants through non-profit Organizations. Non-profits usually have some sort of program in place to pay for the tenants rent. However, you must have a relationship with that Non-profit.

Flipping Property: Have a friend or a person in line firsts that is looking to buy investment property.This could be your insurance agent, the neighbor up the street that own investment property. Get the specifics of what they are looking for then go out and find a motivated seller whom is selling a property 50% under market value. Place it under contract and then sale it to your buyer. 

You are on the right path by looking at your videos and reading up. But sometimes it can be information overload. Just take your time and study what you don't understand and it will come clear to you...

I hope this helps.....

Situation: Non-profit organization gives you a call and says... "Mr. Flowers we have a couple here that has been sleeping in their car and we wanted to know if you have a place available. My response to this is.... Are you looking for emergency housing for a few days or something more on a permanent level? This is important because you should have both, emergency and permanent. Emergency could be just a room you have available to stay until you setup permanent housing. This prevents you from leaving money on the table.... Do not worry about payment for this tenant because it is not the tenant that's calling you... It's the non-profit organization. The idea behind this is to build your network of housing. Some shared housing, some single family for those who can't get along with others.

If tenants are moving out of your shared housing, be prepared to have a single family property for them to move into. Money will never leave your network or properties. The rewards are guaranteed rents and higher ROI...

It took me a while to Build a relationship with non-profit organizations to have an endless flow of tenants. You must not be in it for the money... It has to be a concern for the tenant overall and the money will come. You would need to build a strong presence on how you handle tenants in certain situations. For example: What's your procedure if a tenant experience an episode or that tenant has no one to turn to-------- only you.... Don't stack your tenants on top of each other.  Just because you have 12 rooms and 2 baths, does not mean you should obtain 12 tenants. This reduces conflict with personalities. Build a website for special needs only and highlight your benefits. Focus on the tenant comfort and that tenant will spread the word for you.. 

Robert Flowers

I am not a pro member  because I'm busy doing what I say I can do when I say I can do it for those whom have inquired. I don't utilize BP that often and the site doesn't allow me to post links or phone numbers. However, the post is accurate.  Maybe before judging, you should inquire.... Maybe I should clarify with numbers...  $21000 Invt. property purchase, $12000 repairs on rehab total $33000. Installment of tenants by the room. 3 bedrooms  at $550 per bed = $1650 a month for 12 months = $19,800 income from $33000 investment = $13200, a profit of 60% per year..

You can implement this same strategy in North Carolina if you know what you're doing... Numbers Don't Lie.... They Just Multiply.....

This is what I would do.... Do you remember Golden Girls Sit-Com.  I would find a market where property can be purchased below market and rent out to special needs with guaranteed rent from non-profit organizations... (example) disabled vets, battered females, etc.  Let's say your average rental income is about 550, 600 for a 3 bed 1 bath single family house, depending on the market rent in the area. Well---- you can get 3 times market rent 550 X 3 vets = 1650  monthly and the money is guaranteed through non-profits. NOW THIS WILL REALLY BLOW YOUR MIND! Vets don't damage your property. They keep your property extremely clean because of training. Most are mild mannered individuals.

This is part of my own portfolio in Memphis along with having a stellar relationship with non-profits. Returns On Investment is around 42% - 56%

Robert Flowers

Memphis Discounted Properties dot Net