All Forum Posts by: Samuel Garrett

@Asa Ifill we can definitely link up. I am mostly focusing on off market and maybe on market SFH 3+ bed / 1+ bath. I am also implementing a few new strategies for focus demographics to rent to. Attending a few courses now to get an understanding on the business model. Would gladly share my experiences and learnings thus far.

Happy 2020 Investing!!

@Alvaro Soto, I appreciate the kind words. Yes, I would be more than happy to provide you my lender contacts as well as contract team and property management. They all would love referrals and the ability to work with other investors. send me a note and we can continue our convo off line.

Happy 2020 Investing!!

Investment Info:

Single-family residence buy & hold investment in Huntsville.

Purchase price: $100,000
Cash invested: $46,000

Off market, 2 Single Family Homes (3/3 & 2/1) package deal. Located in the path of progress in SE Huntsville where a great number of developments are underway, revitalizing the area.

Rehab was small ($20k for both properties) and only took 3 weeks. Homes appraised for total of $145k.

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

Properties were updated with high quality material because the previous Lease to Own individual couldn't obtain financing and had to vacate the properties. This made the rehab was less intensive compared to my other projects. Also, these are in a great location and in the path of progress.

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

There was another buyer who offered $10k less than asking. I agreed to the sellers asking price with an agreement that I put down 20% and pay the remaining balance in 5 months with no interest.

How did you finance this deal?

Used LoC to fund the down payment and renovation. Owner financed the remaining for 5 months. Will refinance in month 3-4 to pay off loan and LoC.

How did you add value to the deal?

Location was/is great as there are developments in the immediate area. Location is central to main highway, big box stores, and development of giant mix use development in 2020.

What was the outcome?

Renovation completed on time (3 weeks). Both units are currently rented for $1800 combined. Will refinance in a few months to pay off debt owed. Cash flow will be $500 after debt service, giving us a CoC ROI of 70%

Lessons learned? Challenges?

After completing a few deals. I learned that due to action and building a reputation, key players are willing and able to work with you, ensuring that the process

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

SVN realty (Paul McDonald) presented and negotiated this deal. He knew I was able to close and I was the first person he called cause I would be able to close quickly. Iberia Bank (Kristen Strickland) provided me the vote of confidence that I will be able to get a mortgage on this deal. We have completed deals in the past, so I am a returning customer with a track record.

Investment Info:

Single-family residence buy & hold investment in Huntsville.

Purchase price: $100,000
Cash invested: $46,000

Another BRRRR deal with owner 0% financing in Huntsville.
Off market, 2 x SFH (3/3 & 2/1) package deal. Seller was firm with price ($100k). Properties were rent ready as previous leasee wasn't able to lock in financing. They did a lot of improvements on the home.

Rehab was small ($20k for both properties) and only took 3 weeks. Homes appraised for total of $145k.

Was able to negotiate 20% down with owner financing (0%) for 5 months. This allowed time to renovate, rent (now leased for combined $1800), build capital and will refinance in month 3/4 to pay the owner the balance owed and replenish capital used for renovation. Leaving $10k in the deal for a 70% CoC ROI.

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

Presented to my by my transaction agent that I closed on a previous deal. The location of the properties were in the path of progress in SE Huntsville. I also like that the rehab was less intensive compared to my other projects. Allowing me to get in/out quickly and rented.

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

There was another buyer who offered $10k less than asking. I agreed to the sellers asking with the agreement that I put down 20% and pay the remaining in 5 months with no interest.

How did you finance this deal?

Used LoC to fund the down payment and renovation. Owner financed the remaining for 5 months. Will refinance in month 3/4 to pay off loan and LoC.

How did you add value to the deal?

Location was/is great as there are developments in the immediate area. Location is central to main highway, big box stores, and development of giant mix use development in 2020.

What was the outcome?

Renovation completed on time (3 weeks). Both units are currently rented for $1800 combined. Will refinance in a few months to pay off debt owed.

Lessons learned? Challenges?

After completing a few deals. I learned that due to action and building a reputation, key players are willing and able to work with you, ensuring that the process

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

SVN realty (Paul McDonald) presented and negotiated this deal. He knew I was able to close and I was the first person he called cause I would be able to close quickly. Iberia Bank (Kristen Strickland) provided me the vote of confidence that I will be able to get a mortgage on this deal. We have completed deals in the past, so I am a returning customer with a track record.

I would love to hear thoughts from other more seasoned investors on this thought process:

By this being new construction, are you able to adjust your CAPEX and Repair reserves? specifically CAPEX since you should have warranties.

Also, another thought, since you set such high reserve % on both of these, at the end of the year 2 you will have a reserve of $7k+ (in theory). If you have no turnover in the those 2 years, you aren't necessarily tapping into these reserves (specifically the CAPEX reserve) and therefore you could actually reduce your percentage or remove it entirely and reallocate those funds elsewhere...maybe into your cashflow. Of course until you have to tap back in, then you would have to build it back up.

So in the first 2 years you are running a negative, but in year 3+, you see a increase in cashflow and CoC/ROI due to increase of rents over the years and reduction in CAPEX reserve allocation.

Curious to hear other's thoughts on this thought process. Do you have to have a budget for CAPEX for the entire time, if you aren't tapping into it?

Hi Matthew. I am a local investor in Huntsville. A great market that is continue to trend upwards. I didn't read all the responses so I may be repeating what someone may have offered to you, so i apologize in advance.

I like your thought process where you want to put your existing equity to work for you.

My strategy is the BRRRR method that has been widely socialized throughout BP. My price range is $80k and below. My average price point is $40-50k, with a typical $20-30k reno, and ARV $110-125K. <--I have a very good wholesaler.

If I was in your position and you have a great situation where your property is self managed and with minimum to no tenant headaches, I would maintain the property and look to get a 1) line of credit - my preferred COA or 2) refinance, to use the capital to acquire a property. My typical turn around time for the entire process is 3-4 months.

I truly believe this process would allow you to scale efficiently to your goal of 4-5 properties within your timeline.

If you want to discuss further I am available. Have a great team and resources that will assist you in your journey!

Happy Holidays and Happy investing!!

Hey @gordon lopes, congrats on another investment. What were/are the status of the leases for the existing tenants. Are you receiving fair market rents? Looks like a very good structure. Who is the PM managing this property? 

@Andrew Harrell & @Kenneth Hill, I echo Daniel's comment as well. I am a local investor in Huntsville and am always excited to meet like minded investors! Welcome to the area.  Exciting times for this area!

Happy Investing!

Congrats Lane!! Will you post more info on the deal? Looking forward to hearing about it!

@Hunter Kelley, sorry to hear about the reviews you read about the local REIA here. I haven't been personally, however I was planning to attend next week, 3 Oct, as they will be discussing BRRRR strategy.

Nonetheless, welcome to the site. You made a right choice by coming here meeting a great number of amazing like-minded successful individuals.

There are plenty of investors in the Madison County that are on Bigger Pockets, just continue to post with the key word Huntsville and it should be picked up instantly to respond to. I have been in this area for a little over a year. I relocated due to me being in the military. I hit the ground running and bought a couple of deals. I also partnered on one as well. The biggest thing I realize is Take Action (in anything), get yourself involved and people will notice your genuine passion for real estate and will be drawn to you!

Happy Investing!