All Forum Posts by: Robert J.

@Travis Rogers definitely. Let’s talk. I plan on picking up at least 3-4 more this year and have had a great response from postcards so far. 

@Eric James that’s true but if I’m doing 15 a year I won’t need worry about maximizing every deal. Like Walmart It’s about volume at that point. 

@Amy Aziz Thank you

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $165,000
Cash invested: $22,700
Sale price: $269,000

SMALL SFH FIX AND FLIP. Full Gut

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

I wanted to get started in real estate and i work a trade job so i figured i'd put it to work on a flip

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

I sent out postcards to absentee owners with equity. The owner had an offer that was 10k higher than mine but i told her i would pay her closing costs and she wouldn't have to pay a real estate agent which means she'd take home more with my offer.

How did you finance this deal?

42k from a heloc and 130k hml

How did you add value to the deal?

Full rehab.

What was the outcome?

We close monday. All docs signed. 62k profit

Lessons learned? Challenges?

This was actually too easy. I'm going to be very cautious on my next deal because there is no way they all go this smooth. We had it closed on in two weeks and we had it sold 35 days into our rehab. The escrow has taken longer than the rehab but we got the price we wanted.

So this story actually starts about 5 years ago. I lived in Los Angeles and was looking to go to a four year to finish my degree and one of the criteria i wanted was someplace i could afford a home and that was growing so i could eventually use that home to finance my real estate investing. After researching schools and areas and visiting a few places i settled on a place 90 minutes south of Portland and just outside of Eugene Oregon. The town was going through a lot of improvements and i (gambled) figured this was "the path of development." Sept 30th 2015 we closed on our 3/1 on .25 acres for $159,000 and i put roughly 5k down and negotiated the sellers to pay me about 11k at closing and we lived life. I finished school, joined the national guard, did some welding and building and different things and my wife grew in her career.

January 2020 I closed on a HELOC and our house was appraised for $265,000 on the low end so we pulled out $80,000 for our line of credit and got to work. I started writing offers and sent postcards and built a website and started talking to people and purchased a little 1000 sq ft fixxer on Apr 10, 2020. We (my father came up from LA for a few weeks) fully gutted and rehabbed the whole house in 40 days. The deal closes tomorrow and our numbers look a little like this.

Purchase price - $165,000

HML - $130,000

Down Payment + (closing costs & HML fee) - $42,500

REHAB - $22,700

Holding Cost - $4,100

Sales Price $269,000

Profit - $62,000

Next steps: Take that 62k and get to marketing. I've spent about 18k of that so far on long term marketing plans that should start paying off over the next 6-10 months and the rest will be used for inbound marketing and setting up systems that get me going on to bigger things.

Plan is to get three or four more deals before I think about quitting my job and have 15 (flips) and more wholesales (25-30) done by year two.

Robert Jenkins

Depends what your path is. Flipping and wholesaling it's useful for sure. What are you doing to GET PROPERTY? Once you comp these place are you reaching out and putting offers? Propstream is a tool for business. No need to pay for it if you putting offers out and getting property. You can learn how to comp stuff off zillow and realtor (all closed deals are public info so it's posted)

Once you get your arv take 75% of the value and find out if it needs work and find out the price of that work. Then contact the owner and offer to buy it. you'll find the money if you get a good deal.

Also check out the stuff Ryan Dossey puts out. Does big things. He's been on two of the rookie episodes so far with his "students"

I applied for my heloc through a credit union and they never sent out an appraiser or anything. My property was appraised remotely (maybe they did a drive by) but the appraisal process was pretty easy and quick and my credit union informed me it appraised for more than i was requesting so they did it no problem (this was january). I've since flipped one property. I honestly wouldn't worry about trying to add value over what its worth in current value range. If it takes you 10k worth to increase the value 20k and they only loan 75percent of arv you're only making an extra 5k on your heloc but spent 10k of your cash. If the deck is going to increase the value 100k then maybe it's worth it but anything less than a 50k value improvement i would say get the heloc and get started. 

@Josh Lovvorn

Hey! I have started and done well. Two properties down and both have sold before I was complete on the rehab for decent profits. Looking to ramp up in the next 3-6 months for sure.