All Forum Posts by: Jared Sveen

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $792,500
Cash invested: $65,000

Newly acquired 12plex in great area near Union College in Lincoln NE. Under rented and needs some updating but should be stabilized in 6 months and producing a solid cash flow monthly.

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

I've been looking to get into larger multi-family properties for the past 18 months and finally found something off market that was worth pulling the trigger on. Long term play with some forced appreciation and increasing rents along the way.

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

Cold called a bunch of apartment owners in the area and negotiated about a 58k off of asking amount based on a few units that need rehab and how under rented the units are currently.

How did you finance this deal?

Bank financing.

How did you add value to the deal?

Update of 2 units and increase rents on all units as they are extremely low.

What was the outcome?

Still a work in progress but coming along nicely so far.

Lessons learned? Challenges?

Make sure to follow a checklist when going through all due diligence items and try to get the seller to be accountable for getting the deal closed. Didn't end up getting leases until a week before close after asking about getting them for 2 months. Didn't cause any issues but would've preferred having them sooner to get more prepared for the transition.

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

West Gate Bank in Lincoln NE. I would highly recommend them on the residential and commercial side. They have helped me grow my business exponentially over the past few years.

Hey @Jeff Neill!  I saw that you found the local facebook group which is definitely more active than on here.  I'd be happy to help with anything that you are having questions on in the Lincoln market.  I've lived here my whole life and know it pretty well, I've also got some good connections I'd be happy to share.  My phone number is on my profile.  Happy Monday!

Hey @Neil Frederickson

I tried to post earlier but it got removed for breaking terms and conditions of posting in the forums....as I'm sure this one will be as well.  

Nonetheless, welcome to the Lincoln Market!  Would love to connect sometime as I'm an active investor in town as well.  If you have specific questions on anything please reach out.

Hey @Mark A Sherberg, welcome to Lincoln! I'd love to connect with you guys and discuss the Lincoln Market.  Let me know if you'd want to meet up or have a phone call.  Thanks!

Thank you! @Michael Kinsella

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $95,000
Cash invested: $7,500
Sale price: $149,000

Single Family Fix and Flip Property that needs mostly cosmetic updates.

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

Good area of town with mostly cosmetic updates

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

Direct Mail. Told the seller the most I could pay for the property in it's current condition and she agreed to it.

How did you finance this deal?

Cash

How did you add value to the deal?

New paint, carpet, flooring, a few electrical updates, and a new garage door.

What was the outcome?

Netted roughly 35k after closing costs on each side.

Lessons learned? Challenges?

Still make offers on properties even if you don't think the seller will accept it. I made the offer and then heard back from the seller a week later agreeing to it.

@Dmitriy Fomichenko Thank you!

Investment Info:

Townhouse buy & hold investment.

Purchase price: $110,000
Cash invested: $5,000

3 Bed 2 Bath Townhouse in Southeast Lincoln, NE

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

The townhouse is in a great area of Lincoln where rents are typically higher on average.

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

Found the deal through a lead that I've been working on for two years to buy his portfolio. He wanted to partner up to buy this townhouse because he knew the owner wanted to sell but then he decided to let me run with it since he doesn't need any more properties to manage. Negotiated the deal by giving the owner a call and asking him what he wanted then asked for a 20% discount on the price and settled on a number that worked for both of us roughly 10% off ask price.

How did you finance this deal?

Cash deal that was later refinanced out.

How did you add value to the deal?

Put on a new roof that increased the curb appeal and that was it.

What was the outcome?

Cash flowing about $1,000 per month with an asset that has roughly 65-80k in built in equity.

Lessons learned? Challenges?

That townhouses with HOAs can be cash flowing properties. I always wrote off town homes as being not feasible investments as the HOAs would cause issues and cost too much. Now it's my best cash flowing asset and is headache free (so far) with the snow/lawn/garbage all being handled by the HOA. There were some challenges in dealing with the seller as he had some substance abuse problems that he was still recovering from but overall not too many issues overall.

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

West Gate Bank in Lincoln NE helped out with the Refinance. 

Investment Info:

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

Purchase price: $210,000
Cash invested: $21,000

Seller financed duplex in great area of Lincoln, NE.

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

Looking to expand into more multifamily properties.

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

Relationship from Direct Mail. Gave the seller the price she wanted if she would finance the purchase.

How did you finance this deal?

Seller carry 90% of purchase price.

How did you add value to the deal?

Cleaned up the units and bumped rents roughly 50% after original tenants left.

What was the outcome?

A great cash flowing asset that I didn't need to qualify for a loan on and with some built in equity as the market has increased from when the original price was negotiated.

Lessons learned? Challenges?

Make sure to get everything in writing and that the seller is aware of everything in the purchase agreement. Had a situation where the Seller thought the closing costs were completely covered by myself but the purchase agreement stated they were split. I decided to cover them to maintain the relationship as there are future deals at stake but was a tense week period of time for the Seller.

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

None.

Hey @Jake M Bueling, there are already a handful of applications that do exactly that for a monthly fee (most of them are around $35-45 per month).  The few that come to mind are dealmachine, batchdriven, and propstream.  I am in the Nebraska market and would be interested in something like what you are thinking of creating but I don't know if it's worth the time to go through the process of creating it if it isn't something that you'd be able to sell and make a little bit of money on, or at least cover your costs.