All Forum Posts by: Account Closed

Investment Info:

Condo fix & flip investment in Atl.

Purchase price: $85,000
Cash invested: $15,000
Sale price: $152,493

Purchasing a property post recession, and venturing into the DIY department. The sale, sweat equity, risk, and reward.

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

LOCATION. The condominium was within a block of another property I owned. Literally footsteps away from Peachtree Street in South Buckhead. INCOME. It was the last unit without rental restrictions. PRICE. Buy low, sell high….

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

The condominium was in foreclosure and had been on the market for awhile. A large earnest amount, and the ability to close quickly was leveraged to negotiate the deal.

How did you finance this deal?

Income and Retirement Savings

How did you add value to the deal?

Unable to find a licensed contractor within the project budget, the inspection report was utilized as a map instead. I was very hands on, purchasing the materials and only paying for labor. The bathroom was completely redone, fixtures updated, in addition to adding a full size washer and dryer. It was an older building, with minimal amenities. Maximum effort was put toward enhancing the aesthetic to a standard comparable to what was

What was the outcome?

The property was rented out for a few years, while an offer to buy the entire complex was on the table/in limbo. After us landlords were outvoted by owners who were actual residents, I decided to sell.

Lessons learned? Challenges?

Lessons? High HOA fees aren't worth cutting into your profit, unless justifiable…. ie. the ability to increase rent. I'd never buy another 2 bedroom unit, with one parking spot, and limited parking again. Challenges? The unpleasant consequence of capital gain tax, due to not taking advantage of 1031 exchange.

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

Iconic Realty Investment Corporation

Thank you for your kind responses. I completely agree regarding the “game is to be sold, not to be told”, considering the 6 figures I put on the line may not be a lot to others, yet significant to myself. The abundance of schemes, scams, and frivolous seminars, that intentionally target newbies or beginners are so easy to fall victim to without lack of knowledge andor research. If any of fellow members (EXPERIENCED and KNOWLEDGEABLE) don’t mind sharing credible recommendations and referrals, I’m also willing to exchange contact, wholesaler, and vendor information I’ve obtained and can provide references regarding as well;)

Thank you for your acknowledgment. So humbled by your accolades, etc. Any words of wisdom? 

Thank you for your acknowledgment. So humbled by your accolades, etc. Any words of wisdom? 

Thank you sir. Your portfolio is quite impressive; any words of wisdom? 

Investment Info:

Single-family residence fix & flip investment in Atlanta.

Purchase price: $85,000
Cash invested: $15,000
Sale price: $152,000

2 bedroom, 1 bathroom, 920 sq ft. ground level, condominium.

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

The LOCATION is literally footsteps away from Peachtree street; in the heart of Midtown, Atlanta. It had no rental restrictions. I’m extremely familiar with the area, and the post recession price was unbeatable.

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

It was a foreclosure; A friend from undergrad purchased and renovated a property in the same building, post recession. It had been on the market for quite sometime. After my low ball offer was denied, I was counter-offered a phenomenal price that I couldn’t refuse. Despite, the unreasonable escrow request...

How did you finance this deal?

Personal savings for purchase and renovations.

How did you add value to the deal?

Major updates..... I completely renovated the bathroom, updated the fixtures, added a washer and dryer, etc.

What was the outcome?

49,000.00 profit, minus capital gain tax. (I didn’t utilize a 1031 exchange)

Lessons learned? Challenges?

Had I known how home renovation loans worked, that would have been utilized instead of my savings. I wish I was more knowledgeable regarding the going percentage rate for hiring property management, because it was way too high for the service I received. I definitely learned that being a hands off landlord works best for me. Lack of mentorship and coaching was my biggest obstacle in this process.

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

I didn’t have any contacts for reliable contractors, so I used my inspection report as a guide, and delegated each task from there. I was extremely hands on and somewhat knowledgeable from previous work I’ve done in my own home. I purchased most of the supplies independently, to avoid paying for more than labor.