Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Toni Bird

Toni Bird has started 5 posts and replied 14 times.

Post: 35K Profit on my first flip! Before and After pics!

Toni BirdPosted
  • Real Estate Investor
  • Coventry, RI
  • Posts 17
  • Votes 3

Hi Daniel-

I must say this is absolutely stunning! What a beautiful renovation and I think you guys did an awesome job! This is definitely encouraging for any new investor but as you mentioned, it does take time and research so to everyone who is saying this was .. yeah maybe a little bit, but when you educate yourself and when you are motivated- you can do something as wonderful as this!

Excellent job- good work and ethic :) 

Post: Historical Multi Family in Rhode Island

Toni BirdPosted
  • Real Estate Investor
  • Coventry, RI
  • Posts 17
  • Votes 3

@Andrew Brockway thanks for reaching out and I also welcome you to the real estate business!! I agree on that one-- your response- however, the house is being sold at a large discount, almost 100k less than the ARV, and it jus needs to be painted. Investors who buy these usually appreciate the character and don't want to remodel.. also these investors usually have construction companies or work close with contractors...

Post: Historical Multi Family in Rhode Island

Toni BirdPosted
  • Real Estate Investor
  • Coventry, RI
  • Posts 17
  • Votes 3

Hi Stephen Torti, thanks for reaching out and welcome to real estate :) You will learn a lot here on bigger pockets... to answer your question, I am just trying to wholesale this property. It is not on the east side but is closer to the Elmwood area in a historical neighborhood...

Post: Historical Multi Family in Rhode Island

Toni BirdPosted
  • Real Estate Investor
  • Coventry, RI
  • Posts 17
  • Votes 3

Hello real estate friends and thank you for coming to my post! I have completed one deal- back in January and finally have my second deal under contract.... I is a good deal and I have it for sale for 230k and the ARV is about 350k, however I am a little unsure still about what to say for repair value. It is a beautiful historical home that obviously needs painting throughout, but is nothing crazy... the house really just needs some updating but is not in bad condition where anything would need to be renovated. How would you normally put a price on this? I have had someone tell me probably around 60k, but I want to be as accurate as possible. Advice?? Thank you again :)

Post: Fixer upper, I want to get this deal sold, but can I?

Toni BirdPosted
  • Real Estate Investor
  • Coventry, RI
  • Posts 17
  • Votes 3

thank you both for the advice, Matt I agree that would have been a better way to present the property. This is definitely a learning process- I just wish I had thought of that layout before sending out to all of my buyers! I believe since it was last used as a rooming house I assumed it could have gone either way- single family or multi. Again, I am new to all of this just feel stuck now as this property has been hard to sell for me. Kyle- that is great advice too, again I think I saw the flexibility in purposes of the house and didn't realize all the aspects that would come with either option. Would these things still be responsibility of mine when selling 'as-is'?

Post: Fixer upper, I want to get this deal sold, but can I?

Toni BirdPosted
  • Real Estate Investor
  • Coventry, RI
  • Posts 17
  • Votes 3

Hi Everyone! I appreciate your interest in my post, as I am new in the field and have my hands on a contract that I am having a hard time selling... or maybe I just haven't found the right buyer.....

This property I have under contract is a fixer upper property, but the numbers make the investment well worth it.

Details:

ARV 242k

Asking price 62k

Repair costs 50-100k

Sold comps 230-250k

*Repair costs were given to me by contractors, and vary because the house was last used as a rooming house so can either be made into a single family/rooming house/hotel/ bed and breakfast... or can be turned into a four family complex, which would cost a little more.

The house also doesn't have any kitchens or bathrooms currently and just overall needs work. The neighborhood is quiet and clean, near downtown, 20 minutes from the beach and is surrounded by other rental houses. [3,048 sqft on a 4,321 sqft lot]

So far I have sent this property out to many investors and have not had any catches. I am wondering, why am I having such a hard time selling this house? I believe there are buyers for everything, and maybe I just haven't found the right person. But does everyone think these numbers make sense? I see a big cash flow once fixed up because rent in the area is average 1,000-1,200/month. Also, even if you went to the highest repair cost, [100k] the math would be [242k-100k-62k=80k] That's a big profit!

A lot of buyers say they love re-habbers and fixer uppers- so am I just targeting the wrong buyers?? My contract expires Nov 30, 2015- I really don't want to extend as the seller wants to close asap and I promoted that I would do that for him... 

What should I do?? Who should I turn to?? Even though I am a newbie, I have educated myself very well and have learned that to investors, it's all about the numbers. These numbers definitely make sense to me. What does everyone else think?

Again thank you so much, every response helps me get closer to not only my sale, but learning and expanding as a real estate professional!!

Post: Serious newbie in the real estate world! Looking to branch out!

Toni BirdPosted
  • Real Estate Investor
  • Coventry, RI
  • Posts 17
  • Votes 3
Originally posted by @Mark Nolan:

@Toni Bird

Welcome to Bigger Pockets community. Be sure to check out “Learn” for all kinds of useful resources and free how to guides.

 Thank you Mark... I will be sure to check it out, after all, learning is what brings success!

Post: Is this property worth investing for a wholesale??

Toni BirdPosted
  • Real Estate Investor
  • Coventry, RI
  • Posts 17
  • Votes 3
Originally posted by @Aaron Mazzrillo:

In a really hot market, I could find an all cash buyer for this, but personally, I don't see any profit in this deal. If your buyer needs to borrow hard money, the small margin you negotiated will be eaten up just in points, interest, closing costs and sales fees. The one important thing you left out was estimated fix up to get it to that $222K ARV. ARV being "After Repair" value. Unless, the $222K is the current "As-Is" value and fixing it up will push it closer to $250K. As mere spectators to your deal, we don't know.

You're closing costs seem a bit low as well and finally, I would never trust a Realtor's economic opinion, because that is all you are getting an opinion which is as valuable as an onion with pi in it, as to what the market will do in the next week, never mind over a 6-12 month period.

Hi Aaron, I appreciate your response! However, I would be looking for a cash buyer, hopefully avoiding any type of need for a loan. And yes, $222,943 is the current ARV. The house doesn't need repairs, the owner just wants to sell and move to FL. The market looks on the rise also based on online resources based on past market value and current sales going on in the area...... thank you again

Post: Is this property worth investing for a wholesale??

Toni BirdPosted
  • Real Estate Investor
  • Coventry, RI
  • Posts 17
  • Votes 3
Originally posted by @Gerald Harris:

Option 1 - Wholesale

In my experience, an investor who wishes to fix and flip a property wishes to get is at 70% ARV and under. so to use your numbers

250k x 70% would be 175k.   This is where your cash investor would like to buy the property at.  175k and under.    

so knowing this you want to see if there is any wiggle room on the 175k.   if you can get is under contract for 170k and below, you can get your 5k fee and sell it to an investor via wholesale for 175k

let me also say this

I am assuming the value is at 250k like you said

make sure your back end investor can take care of closing costs.  With a discount like this, the seller may be reluctant to help with closing costs

I do not know your market.   You may have an area where investors will buy at 80% arv (After repair value)   

So

Just know your numbers and make sure you have solid comps to back it up

Option 2 - Buy and Hold

Find buy and hold investor who has great credit.   If they can finance a deal like this assuming they have great credit, the monthly cash flow could be worth it.   

Seller Carry & Lease Option could be available here as well.  Just depends on seller flexibility. 

Hi Gerald, thanks for your response! However you use the number 250k with your math and my ARV is $222,943.... But I agree, I am going to try to make some wiggle room on that 175, even though the ARV is actually $222,943. I was thinking even at a higher rate, around 80%, it's still worth it for the buyer because there are already tenants in there at $1,600, or he could raise the rent/get new tenants if desired. So as you see, they'd already be making a return on value instantly with the rent.......

Post: Is this property worth investing for a wholesale??

Toni BirdPosted
  • Real Estate Investor
  • Coventry, RI
  • Posts 17
  • Votes 3
Originally posted by @David Veikune:

I love this deal. If your wholesaling though you'll probably have to sell to an investor because most "regular" buyers would feel uncertain on buying a property with tenants living in it. They usually want to move in right now. I don't see why an investor wouldn't swoop up this deal 41k in instant equity and hopefully some good cash flow.

 Thanks for the reassurance! I was thinking the same thing. The good part is the buyer wouldn't have to keep the tenants there if they didn't want to, but in my eyes it looks more secure they will get an instant cash flow... I see the equity worth it too! Thanks for the response, very helpful!!