All Forum Posts by: Wesley Charles

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $325,500
Cash invested: $390,000

First fix and flip with my dad as partner.

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

Excited to get into the game and flip a home.

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

A local wholesaler. We viewed the property and offered $500 over asking 2 hours later.

How did you finance this deal?

HELOC on primary residence.

How did you add value to the deal?

Gut everything and replace

What was the outcome?

Working away at it. It's quite the project for a first flip.

Lessons learned? Challenges?

I now understand what it takes to be able to view a property for 15 minutes or so and look at each aspect of the home while calculating what it will cost to repair. This home had insane amounts of trash, a huge task to overcome.

Contractors are the most important part of your job. I am lucky enough to have had a friend who has been doing this for a while and is working on the home for me.

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

The Do It All Dude LLC.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $340,000
Cash invested: $15,000

My personal residence. It's a house hack.

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

I knew I could gain $1,100 monthly over my rental I moved out of.

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

On the MLS. Beat up the seller in the inspection period based on structural issues.

How did you finance this deal?

I borrowed the down payment from family and did a conventional loan. I then took a HELOC out for 9% of the appraised value. My appraisal came in 15k over the purchase price so I got an additional $13.35k in this secondary mortgage.

How did you add value to the deal?

I fixed a couple things in the home and have worked on the yard. I am also the property manager and rent out 3 of the 5 bedrooms.

What was the outcome?

I am making about $400 a month over the 1st mortgage, and saving $700 a month in rent.

Lessons learned? Challenges?

House hack is by far the best financial move a young single person can make to get their career going. It is challenging having roommates and keeping up with repairs for someone who enters with a low cash position.

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

Thomas Charles

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $155,000
Cash invested: $90,000

A condo I found on Facebook. Talked the seller down from $190k and partnered with my mentor on it. I borrowed the 90k from my dad, none of my cash is in the deal except for minimal purchases of supplies. We are hoping to put it on the market next week and get $220k.

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

I got the condo for a good price and it was my first deal.

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

I found it on Facebook and negotiated on the Facebook Messenger with the seller, as well as in person. This home came out of a trust into the sellers name so I also negotiated with the sellers lawyer.

How did you finance this deal?

90k borrowed from family, my partner brought the rest. (125k)

How did you add value to the deal?

I found the deal. I did all demo on the deal. My partner and I have gutted the apartment and fixed everything.

What was the outcome?

TBD

Lessons learned? Challenges?

Working with a property which is held in trust is very difficult. There are a lot of moving pieces. It was very interesting to go through this process for my first flip.

There is a lot hiding behind cabinets and flooring.

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

We did everything internally.