All Forum Posts by: Zachary Yelder

Thanks Austin. Only works for furnished units and temporary tenants. Our other one at Embassy, which is on my page, performs the same and has done well over the last couple of years. Condos aren't for everyone but we developed a specific niche that works for this market in central Phoenix. 

Investment Info:

Condo buy & hold investment in Phoenix.

Purchase price: $210,000
Cash invested: $20,500

This house came from an overflow of rental requests for the central Phoenix are. I actually submitted an offer when it first hit the market. The other buyer fell out after inspection & I was called back to see if I still wanted it. Put a little money into to update & furnish it but does extremely well because of one of the rental platforms our company is on. Long term healthcare tenants that are paid by the hospital so, the money is on time every month and upkeep really well.

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

I'm always looking for unique, historic but updated homes in the central valley. Like I said, one of our rental marketing platforms is having a high demand for the central corridor so as soon as one popped up for a good price, I hopped all over it.

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

This was actually a listing by one of my team members on the real estate brokerage who knew I was looking for a downtown high rise.

How did you finance this deal?

Traditional Financing with Quicken.

What was the outcome?

Currently rents long term for $2,500 furnished so, it's a great deal!

Lessons learned? Challenges?

My biggest challenge is the oldest challenge, reliable, good performing contractors. Tried a whole new crew on this one and ended up over spending $5,000 by fixing mistakes from the previous contractors. Went through 3 contractors for the same job on this one. The most available guys sometimes aren't the best. They're available for a reason.

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

Quicken Loans is the best right now on rates and programs. And I'm an agent so I always represent myself, which makes negotiating 10x easier mostly.

To why I posted her to message me for details. That's a lot of details to write in a blog message my man. Much like Detroit, there are parts of Birmingham that are seeing out with the old and in with the new. I've acquired properties in downtown Birmingham from $60k-$180k and same in Detroit. It all depends on the strategy, cash out play or cash flow expectation. The formula is the same for me no matter what city I am to why you see I'm in all parts of Oakland and Wayne. 

Hey Marina! Great question and you've been followed up with some well known figures in the greater Detroit area. I myself invest in Oakland & Wayne County in cities like Birmingham, Pontiac, Detroit and Westland. I'm happy to chat with you on what I've been finding in these cities last few years. 

Good thread here Ryan. I've completely switched from buy & hold in Phoenix to flips exclusively. You're easily going to spend $250k for a decent buy and hold to meet, what I calculate as a 10% cash-on-cash return minimum. And because a majority of my buy & holds are in the midwest like some others I see where I'm getting 15%-30% returns with equity, it made sense to continue to build my capital here to acquire more out there. Off market deals are becoming gold mines and that means wholesalers are your friends. Granted there are still those greedy folks out there but find one who's reasonable and wants to see you win. Build the capital up and when our market shifts in the future and more inventory can start coming in, then you can switch back to buy & hold options in the valley. Capitalize on inventory being low because basically, you're guaranteed a sale if you price it right and deliver a good product and who doesn't like their profit back quickly? Just my thoughts. 

@Account Closed thank you so much! This one helped with our newest portfolio acquisition! I'm so happy it worked out!

Welcome to the valley! I have a good friend of mine investing in the Seattle area. I myself do out-of-state investing and invest here in Phoenix. Happy to connect my man!

@Kevin Hunter Thank You! 

Investment Info:

Single-family residence fix & flip investment in Phoenix.

Purchase price: $333,200
Cash invested: $129,000
Sale price: $565,000

This was a flip right in my wheel house in downtown Phoenix, Coronado Historic District. It took nearly 6 months to renovate and sell. We ended taking this one over from a previous investor who was foreclosed on.

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

The spread on this one was great! We acquired it so low in a neighborhood that was hot! Biggest factor for me is that I live close by so I can pop in there every day to check progress and I specialize in downtown as an agent. I knew the buyer for this home and how to maximize the dollar. It was easy to come up with a design and lay out to get it sold for top dollar.

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

This deal came to me from a lender I've known through the years. He knows I live downtown and I was actively looking for a flip in downtown Phoenix.

How did you finance this deal?

The same lender that foreclosed allowed us to carry on the house until we sold it. We payed the 20% down and carried the note.

How did you add value to the deal?

Ultimately different sells in the downtown Phoenix market. I wanted the high end buyer so I went high end finishes. From the Grohe plumbing fixtures, designer pulls & knobs, high end countertops, lifetime warranties on fixtures and appliances. Just going for the details and top dollar finishes that $500k + buyers look for and a design that you don't see in Phoenix. The other is curb appeal. The front yard and giant porch got us a ton of calls when the sign went up.

What was the outcome?

It took 5 months to renovate the entire project and ended up selling it before I could put it live on the MLS. I was pre-marketing it with my sign in the yard and our e-mail list with our firm and an agent I knew came with the buyer.

Lessons learned? Challenges?

Biggest lesson is, if you can, rip out the previous investors work. The contractors from before ended poorly installing plumbing, electrical and floors and we ended up paying for that through the renovation. Had we just ripped it out in the beginning, as we did with certain parts like the kitchen and bottom bathroom, it would have saved us time and money. Our original budget was $90k and we ended up at $129k due to those mistakes. Second mistake, fire your contractor if he keeps making mistakes.

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

Yes, Andrew at Boomerang financial was great and Mark & Thomas at D.O. Capital Group were easy lenders. Jennifer Bayless at Lawyer's Title is the best title rep I've ever had and I've done hundreds of transactions in our beautiful state. She does all my title work for my investments and my clients.

Investment Info:

Single-family residence fix & flip investment in Phoenix.

Purchase price: $333,200
Cash invested: $129,000
Sale price: $565,000

This was a flip right in my wheel house in downtown Phoenix, Coronado Historic District. It took nearly 6 months to renovate and sell. We ended taking this one over from a previous investor who was foreclosed on. Notes for the future, rip out the previous investors work, saves for time and headache later. Miraculously, it sold before it hit the market and we got it closed in 30 days. Perks of being on the #1 realty team in AZ, our marketing is incredible! My toughest flip to date as I had every bit of trouble with contractors, structural issues, the city, buyers agent and inspections but it got done! Thank GOD! I'll always remember this one!

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

The spread on this one was great! We acquired it so low in a neighborhood that was hot! Biggest factor for me is that I live close by so I can pop in there every day to check progress and I specialize in downtown as an agent. I knew the buyer for this home and how to maximize the dollar. It was easy to come up with a design and lay out to get it sold for top dollar.

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

This deal came to me from a lender I've known through the years. He knows I live downtown and I was actively looking for a flip in downtown Phoenix.

How did you finance this deal?

The same lender that foreclosed allowed us to carry on the house until we sold it. We payed the 20% down and carried the note.

How did you add value to the deal?

Ultimately different sells in the downtown Phoenix market. I wanted the high end buyer so I went high end finishes. From the Grohe plumbing fixtures, designer pulls & knobs, high end countertops, lifetime warranties on fixtures and appliances. Just going for the details and top dollar finishes that $500k + buyers look for and a design that you don't see in Phoenix. The other is curb appeal. The front yard and giant porch got us a ton of calls when the sign went up.

What was the outcome?

It took 5 months to renovate the entire project and ended up selling it before I could put it live on the MLS. I was pre-marketing it with my sign in the yard and our e-mail list with our firm and an agent I knew came with the buyer.

Lessons learned? Challenges?

Biggest lesson is, if you can, rip out the previous investors work. The contractors from before ended poorly installing plumbing, electrical and floors and we ended up paying for that through the renovation. Had we just ripped it out in the beginning, as we did with certain parts like the kitchen and bottom bathroom, it would have saved us time and money. Our original budget was $90k and we ended up at $129k due to those mistakes. Second mistake, fire your contractor if he keeps making mistakes.

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

Yes, Andrew at Boomerang financial was great and Mark & Thomas at D.O. Capital Group were easy lenders. Jennifer Bayless at Lawyer's Title is the best title rep I've ever had and I've done hundreds of transactions in our beautiful state. She does all my title work for my investments and my clients.