All Forum Posts by: Tommy Brant

Thanks for the share, @Brian Burke. I've been investing in SFH for a couple years, and am looking to scale into multi family in 2021. I enjoyed your comments on the podcast, and read the book. I've taken a deep interest in deal syndication as this seems to align the most with my interests and skillset. (My W-2 job is a business analyst)

Curious to know what other resources you'd recommend for improving as a deal syndicator?

Great insights, @Russell Brazil! Gives me some ideas for the next one.

Thanks @Mason Hickman. There's a handful of properties that have been snatched off the market before I could blink. Working with my realtor to help me keep a pulse on the market, and he's been very helpful. You're right - it's a very delicate balance that I don't trigger the an unwanted reaction with a too-aggressive bid. In this case, we discovered there was a deadline for offers, and figured we had one shot. *crosses fingers*

Hello BP! 

Wanted to get some perspectives on what's most appealing to a seller when putting in an offer. Would love to know your thoughts on this. I have framed up a question specific to my experience, but have also posed a very general question that may be more valuable to answer. I'll defer to you which you want to take a stab at ;) Thanks in advance for providing your perspective!

Here's some background:

Single family rental property is for sale on MLS, but the list price is such that I could yield positive cash flow if rented. Other real estate investors are drawn to this property, and it's obvious to other investors this is an appealing property. Thus, a competitive landscape. As a result, the property will likely be under contract within 1-2 days. That leaves me with enough time to scout and put in one offer. I will not have insight as to what others are offering.

For the purpose of this example, let's assume all financing would be the same.

I found myself pondering between 1) making an offer with an escalation clause VS offering 2) far more than asking price(let's say it's higher than any of the escalation clause thresholds) and asking for the seller to pay some in closing costs(or some other cost). 

It seems like the escalation clause is the most reliable in winning this blind bidding war, but I was curious to experiment with offering more ahead of time and asking them to pay some back at closing. 

What would you recommend?

Maybe another way to ask my question: if you knew competition was fierce, how would you recommend an opening offer?

Thanks @Cullum Stirling! If it's anything like what I'm seeing happen around Nashville, you will be under contract in a weekend's time when you put it on the market. Best of luck brother!

Thanks @Rob Dold! It was on the southeast side of Nashville. Specifically in Smyrna. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $125,000
Cash invested: $100,000
Sale price: $282,000

Hi BP! To keep it brief: Bought a house via short sale. Lived in it while doing rehab. Also house hacked with college buddy who didn't mind a little dust. He basically paid the mortgage. Worked full time during this period. Was a slow flip, but very accelerated toward the end to close it out. Appreciation was also in my favor. Learned a lot, and ready to apply it to the next one! Liquidating this property with hopes to start my rental empire this year. Crossing my fingers for a four-plex!!

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

The pool in the backyard, no big foundation issues, and was close to work.

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

Bought via short sale

How did you finance this deal?

Traditional

How did you add value to the deal?

100% new floors,
100% new paint,
Kitchen reno,
new roof(waited for a bad storm to get help from insurance - it rains a LOT in middle TN)
got the pool online
redid backyard
curb appeal/tree de-cluttering
little foundation improv,
lot of drainage improvements

What was the outcome?

I knew I didn't want to rent this house(largely on account of the pool and associated expenses), so I sold the house.
House went on the market, and in less than two days there was a bidding war, and third day was under contract. That's the Nashville market for you.
I netted $50k+, owe nothing on it, and LEARNED

Lessons learned? Challenges?

The best insights extracted from all of this was learning cost per types of renovations.
There's also some value 'hacks' I'd like to try on property rehabs moving forward(replacing cabinet doors VS replacing the whole cabinets, etc.)