All Forum Posts by: Schuyler Witt

Thanks! I really lucked out. It was just about a text book off-market find.

All of the above offered advice is great. I would add to specifically answer your #1 concern, if the partner can't make a committed payment (personally or by securing additional funding) levying additional expenses on him is going to make his personal situation worse. I would add verbiage to your OA that cited if a partner could not contribute a required amount of equity for a future project (capital expenditure, improvement, etc.) then he gives up a % of equity in the company as you add equity to the company.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $33,380
Cash invested: $10,963

This was a textbook BRRRR deal. Bought for $33,380, improved for $39,169, appraised at $105,000 and then mortgaged for $67,500. I pulled all put $10,963 out of the deal and it cash flows great! CoC return of 55%!

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

7 Years to 7 Figure Wealth

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

Driving for dollars. I built a relationship with the out of town owner, showed him what his property was worth and sent him my statement of work justifying the price.

How did you finance this deal?

Cash and traditional cash-out refi.

How did you add value to the deal?

Lots of work!

What was the outcome?

A great BRRRR!

@Ikenna Okoye I asked him everything! You need to do thorough due diligence no matter where or whom you buy the property from. There are some GREAT wholesalers out there and there are some AWFUL wholesalers out there (arguably wholesaler have even less of a barrier to entry than realtors). My experience with wholesalers is that they under estimate the rehab costs and have convinced the "seller" that the seller will not have to be involved, so getting documents from the seller can be difficult (documents such as receipts of capex work completed, leases, etc.)

I'm working on a creative commercial deal right now and analyzing different franchises. I have been playing alot of Robert K. "Cash flow 101" and want to do a big deal. What about you? Do you invest in the UK or the USA?

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Jacksonville.

Purchase price: $72,000
Cash invested: $37,964

This is a duplex that was bought from a wholesaler. The property was tenant occupied BUT one of the tenants wasn't paying rent AND the property needed serious cosmetic work.

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

7 Years to 7 Figure Wealth

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

I found a wholesaler on Craig's List.

How did you finance this deal?

Conventional loan and cash (25% down).

How did you add value to the deal?

Evicted one tenant (cash for keys) and renovated the siding and refinished all of the wood things (cabinets, doors and molding) on the inside of the house.

What was the outcome?

A great rental!

Lessons learned? Challenges?

Lesson 1: Profits increase and work decreases with good tenants. This was our first personally managed property, and replacing problem tenants with great ones ensured that we receive rent every month and minimize expenses.
Lesson 2: Always make contractors sign their bids for work as a contract. We hired the contractor with the lowest bid to do the siding replacement. He was honest but inexperienced, and the work turned out to take much longer and be more in-depth than we anticipated.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Jacksonville.

Purchase price: $72,000
Cash invested: $37,964

This is a duplex that was bought from a wholesaler. The property was tenant occupied BUT one of the tenants wasn't paying rent AND the property needed serious cosmetic work.

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

7 Years to 7 Figure Wealth!

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

From calling a wholesaler on Craig's List and asking him if he had anything to sell.

How did you finance this deal?

Conventional loan and cash.

How did you add value to the deal?

We gave one of the tenants cash for keys, made improvements to the kitchen, all wood finishes in the property and removed the old cedar siding and installed vinyl. This enabled us to raise rents by $100.00 each side.

What was the outcome?

Its a great rental!

Lessons learned? Challenges?

Lesson 1: Profits increase and work decreases with good tenants. This was our first personally managed property, and replacing problem tenants with great ones ensured that we receive rent every month and minimize expenses.

Lesson 2: Always make contractors sign their bids for work as a contract. We hired the contractor with the lowest bid to do the siding replacement. He was honest but inexperienced, and the work turned out to take much longer and be more in-depth than anticipated.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Jacksonville.

Purchase price: $72,000
Cash invested: $3,796,413

This is a duplex that was bought from a wholesaler. The property was tenant occupied BUT one of the tenants wasn't paying rent AND the property needed serious cosmetic work.

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

7 Years to 7 Figure Wealth!

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

From calling a wholesaler on Craig's List and asking him if he had anything to sell.

How did you finance this deal?

Conventional loan and cash.

How did you add value to the deal?

We gave one of the tenants cash for keys, made improvements to the kitchen, all wood finishes in the property and removed the old cedar siding and installed vinyl. This enabled us to raise rents by $100.00 each side.

What was the outcome?

Its a great rental!

Lessons learned? Challenges?

Lesson 1: Profits increase and work decreases with good tenants. This was our first personally managed property, and replacing problem tenants with great ones ensured that we receive rent every month and minimize expenses.

Lesson 2: Always make contractors sign their bids for work as a contract. We hired the contractor with the lowest bid to do the siding replacement. He was honest but inexperienced, and the work turned out to take much longer and be more in-depth than he (or we) anticipated

@ Will Fraser, selling to the park owners, selling to someone interested in owning their own mobile home (owners/end consumer can buy them and have them transported to their own lot, new park, etc). Many mobile parks own the land and lease the lots to owner occupied manufactured homes.

Welcome to the club!

Check out 'Rich Dad Poor Dad' if business and investing is a new concept. For real estate specific information read 'The Millionaire Real Estate Investor.' And lastly, boring but well worth your while start teaching yourself about accounting and book keeping. Most businesses fail because the owners don't know how to read financial statements and see if a business/property is making money.