All Forum Posts by: Skyler Mckinney

So after a very very long four months my first deal is done. 

It has been a intense learning experience that helped kick start my investing career. 

A quick break down.

Lead generated from: Direct mail. Zip code + 60k equity with a cap ARV of $200,000 was the list I was using

Paid: $95,000 (had under contract for 104K but mentor suggested that was too much.)

Funded: Hard money for the loan, personal loan for the down payment. Credit cards + hard money for the rehab. 

The loan was for $83,199 with me bringing 21,800 to the closing table. 

Terms of the loan: 12mo. interest only 13% with no monthly payments. with about $1600 in fees; underwriting, processing ect...

I did the entire rehab myself so a breakdown of the rehab.

Materials around 11K 

Tools around 10K (I had no tools at all I severely underestimated the price of tools in my rehab est.) 

Rehab total 21.5K

purchase closed on 5/16/19

sale listed on 10/3/2019 for 185,000

under contract 10/4/2019 for 186,999 The buyers want the house so bad they put no contingencies in the contract and offered to make up the difference between the appraisal and asking price in cash. 

The house was listed for 3 days and had over 20 showings with several offers. 

I got this house for 50% ARV when I bought the house a Tennant had just moved out and it was in move in condition there were no major defects everything was intact and working.

This was a extreme example of knowing your market. I knew that in this neighborhood the avg. house was worth 150-160 fully renovated. But I also knew that there is a huge gap in housing available there are no entry level homes in my area with high end finishes. There are 3 Navy bases in my area and as being a former junior enlisted sailor you cannot afford to live in a decent area in a nice house so thats exactly what I did. This is exactly what everyone tells you not to do ; have the nicest house in a not so nice area. I took a huge risk and went against other peoples wisdom but how many people have these results. I knew there is a lack in my market for the product I put out and it paid off. 

95,000 + 21,000=116,000 investment 

186,999-116,000= 70,999 gross 

after

before

I have gotten myself into a little bit of a situation. I am only looking for advice from people who have 3-4 years doing real estate. I am also not looking for negativity. So, about three months ago, I had the choice to either quit my job or be fired, and, both of those choices have the same result. So, I have been without a job for a little over three months. When this happened, I closed on a house the next week, so I figured I would be fine financially to make it to the end of the rehab and then have enough money to live on till the next deal and etc. Well, I also had the genius idea to do the rehab myself instead of hiring contractors because I wanted to learn how all of the processes worked and have a general idea of how much materials and labor should cost. I heard it on one of the podcasts the investor said that everyone should do their first rehab themselves to learn everything and so you would know if you were getting ripped off by contractors. I did two walkthrus and had a home inspection done before closing. The house was in pretty decent shape just extremely outdated. The home inspector confirmed that. So, I assumed I could get the rehab done in under two months. I mean everything appeared to be cosmetic. That was not the case I will not go into details, but there was a lot going on in the walls, which I expected because from listing to 80 podcasts and reading all of the books, you learn that something always goes wrong. The deal is still fine I made sure there was a considerable cushion in the numbers, but the issue was the amount of time I have been putting into this house had made it to where I cant look for other deals or find other sources of income. There have been at least ten huge financial surprises come up in my life outside of this house, and I am all tapped out. I have absolutely no more money. My credit score has dropped hugely, which was to be expected with everything being maxed out and no income. I just don't know what I should do. My options in my head are, get another job, which will not be hard, but it will set me back on this house even more or, Take out another personal loan. But at this point I feel like I am so over-leveraged that I will not be able to get out of this hole if I add more debt. I would appreciate any advice that can be offered.
The house numbers
Paid 95k
the loan was for 85K
rehab was 15k
ARV 185k
So I should profit around 60k
I need to finish this house, and I have another at least two weeks till its done.

@Tim Herman  I have enough income coming in every month to qualify for the refinance I already made sure of that. 

Finally got my first deal underway and was trying to get opinions on whether I should sell after the reno or refinance. Heres the Details; Single family townhome 1356 sqft purchased for 95000 the loan is for 87120 I'm putting 21800 down, The appraised ARV came in at 147000 it's hard money, so that includes the 10k reno. I'm doing most of the work myself to keep the budget down since I have all the free time in the world. I didn't come up with the ARV, mine was more around 140k, so that was a pleasant surprise. But what's your opinions? What would you do? I don't have a job right now and could kind of use the cash from the flip but after all the fees and taxes and paying an agent to sell I would only be making like 13-14k or I could have 31k in equity. I am all in on this deal for a total of 116K with the costs of closing, insurance, taxes, and rehab. Which means when I go to refinance I should be able to pull all of my money out.

@Gary L Wallman I just don't think your reading anything that I have said at all. I quit my job because I have PTSD and MY JOB was trying to make me go back to the place I got PTSD. My parents just supported my decision. And I am already set to close on my first deal in 2 weeks. Picked it up for 95K ARV is 155K all it needs is paint and HVAC so in 2 weeks I now have a property that will cash flow 300$ So If I keep this rate up I should be just fine without a traditional job. The issue is you didn't give me any advice at all, you just brought negativity.

@Gary L Wallman how many people have you seen walk into a prop and turn into a pink cloud on the flight deck? Well, I have seen it one more time than I would have liked to. So that caused me to have a little bit of PTSD so when your job hires you that knowing that you can't go back onto the carrier and then tells you, you either go back to the carrier, or you will be terminated what do you do? Id really like to know what your generation would do put in that position? Please elaborate because you have all this work and moral ethic that I lack. Nothing in my life is crumbling at all; I left my wife; my parents asked me to move in with them so they could spend more time with my kids. It was my parents that pushed me to quit. So please keep telling me about my life. I have no question that I will be where I need to be in the next year because I know I'm driven and I know I'm committed. In the last two years while working a full-time job I got a degree in business started a brand and have worked my *** off at this thing. Every minute I'm not at work, with my kids, or sleeping, I am doing real estate. So, no, I have an excellent work ethic just because life has beat your ambitions down doesn't mean it has to everyone else. I came on here looking for support, not negativity. But then again you can't build someone else up when you don't believe in yourself, but that might just be a millennial thing. Go troll someone else.  

@Luke Ski I don't even know where you came up with that number I was in the Navy for 4 years and I've been a gov contractor for 4 years that equals 8 right? I'll break it down for ya. I worked on jets for 4 years in the Navy and I've worked on Jets as a civilian for 4 years so 4+4=8 so that's 8 again right? So that's 8 (eight) years of aviation experience I'm currently 25 (about to turn 26) I went to boot camp when I was 17 now 25-17=8 so I don't know how they teach math where you're at but they seem to fit together pretty well? I mean but what do I know. I mean if you would like proof and don't believe me, I will post my DD-214 and w2s so that way things might make a little more sense. People like you don't belong on this website if you wanted to troll someone you should go to Facebook. If you had read my comments you would know that I didn't want to quit my job it was for legal reasons and that even without a job I make 3400 a month. So keep telling me how wrong I am, please. 

Ok, I just want to get some things straight here. I didn't quit my job because I wanted to. If you read my comments above you will see that. I quit my job because they hired me with a disability and they were trying to force me to do things that go against my disability. So before you jump to conclusions about my life decisions and my irresponsibility read what I have said to others. I have a pending claim against the company with the department of labor. So enough with the go back to your job because of that's not an option. In the week It has been since I have posted this I have started Real estate school and should have my R.E license by the end of the month I already have a broker who agreed to hold my license. I picked up a move in the ready rental for 75% arv and secured financing. So while I still have a job, I have secured another one and picked up my first deal and get this... It was financed without even checking my employment status. I posted this because I was feeling iffy about my decision and was looking for some positive encouragement, but what I mostly got was a bunch of going back to your job. Of course, I have a plan; I have a detailed five-page plan, I'm not going to fail, and I'm not even concerned about it anymore so for those of you sharing positive words I much appreciate it, it was exactly what I was looking for.