All Forum Posts by: Tyler Mundy

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $141,000
Cash invested: $40,000
Sale price: $258,100

I got this home off market through direct mail and by texting the seller. After a lengthy negotiation, I was able to purchase it and renovate it. The renovation took about six weeks, and the home received multiple offers the first weekend. Overall, this project went better than expected (which is rare lol).

How did you finance this deal?

I financed this deal by partnering with my parents, who funded it. We split the profit 50/50.

What was the outcome?

We made around $50,000 in profit, after all expenses. I split this with my parents since they partnered with me on the deal.

Investment Info:

Single-family residence fix & flip investment in Albuquerque.

Purchase price: $116,000
Sale price: $205,000

This was my first fix and flip. I put around $65,000 into this home, and it was funded through a private money loan.

Thanks for all the wisdom, this is helpful stuff! I’m facing a similar situation currently.

Thanks for your help, Greg!

Hello, 

I have a potential deal in the works, but I need some rough numbers to know if it makes sense. A partner and I are looking to buy 8 acres of land for $300,000 in which we could put 15 lots. Not all of the land is developable, so the lots would be about 10,000sf each. This equals a cost of $20,000 per lot ($300,000/15 lots). 

My question is this: does anyone know what a rough "cost per lot" is to develop a subdivision to be ready to build on? (adding roads, legally dividing it, sidewalks, engineering costs, etc.) Is it $15,000, $30,000, $70,000? If I know this rough amount, it will help me to know if the deal is worth pursuing. I estimate that the lots are worth around $80,000+ once completed and ready to be built on. 

I’m partnering with a friend on a flip, and he is going to be providing me a private money loan. Has anyone had a good experience with a private money contract? If so, where did you find it?

Thanks everyone for your help! I am definitely in the very beginning of this process, and I will look into the book recommendations. I agree that much of the risk can be mitigated through knowledge, so I am going to begin moving that direction. 

Hello, I am new to real estate investing, but I have a back ground in commercial appraising. I am looking at buying a small apartment complex, and I was wondering if my idea makes sense. I think this may be called syndication, but correct me if I am wrong. 

I am thinking about getting a bank loan for 80% of the purchase price, and getting a private money loan for the other 20%. The NOI from the apartments should cover both, leaving me with a decent net profit. Does this sound reasonable?

Thanks for your help!

@Justin Kane

Okay, I understand what you are saying. I would agree with that. My original point though was that without the comps to determine an appropriate cap rate, you can't convert the NOI into value.

@Justin Kane

What do you mean by "the cap rate is not based on those comps"?