First Deal Closed!

31 Replies

Well today we finally closed on our first deal as REI. This deal worked out between my wife's LLC and my friend and partner who is the contractor rehabbing the home. I will send before and after photos on this thread as we are moving on it ASAP. This is a 1 1/2 story SFR with 2100 sf, 3bed/ 2 full baths. All new electrical, roof and central heating and air. The home sets on 1.85 Acres with orchard and outside storage. Enough for now, I can't wait to show it to you. Thank You BP for the courage, education and drive.

903-452-8843

Congrats...... :) Tom

Troy

Outstanding @Tom Keith !

Michael Kevorkian here.... Remember this feeling..... it is totally addicting and inspiring & will keep you motivated as time goes on. I can't wait to see and hear all the details.

Way to go!

@Tom Keith that is awesome congrats to you. I am new to REI and I really enjoy hearing that.

Congrats!!

Stay focused and I am sure you will CRUSH it!!

Andrew

You should make a new deal with it.

Congrats Tom! I hope to follow suit. Thanks BP!

@Tom Keith

congrats, I am excited for you.

Congratulations @Tom Keith nice to see post like this.

If you have pictures and numbers it would be nice ;)

Tom,

Most interested in details :). Longview, Tyler, Gilmer, Marshall?

Congrats on this deal! Keep me in the loop on how your contractor works out. Good help is hard to find!

Thats great to hear. I love east Texas by the way. What part is the house in?

success stories are great! Very happy for you Tom! Can't wait for the details!

@Tom Keith Congrats on this major success!!

I am working on closing my 3rd house withing the past 9 months and I honestly don't think these are anywhere near as exciting as the first one was!!

Let's see those numbers and keep the machine moving!!

Thanks for all the well wishes! It is so nice to be surrounded by colleagues working together. I will post the numbers and a picture of the home to start. We have good plans and I believe great numbers for this our first purchase. We are planning on flipping the home because I really think it will be perfect but have requests to rent already out there. This home is in Eastern Upshur County just about 20 miles North of us and 15 miles East of the Contractor half of this partnership.

this is my first time for laying out numbers so don't kill me, but ask all the questions and give all the advice. We can use all we can get.

As stated before; 1960's Brick and Frame SFR with 3 beds/ 2 Full Baths, 1 downstairs and 1 upstairs.

Purchase $77,000

  • Finance $72,500 this is purchase with $10K rehab at 80% of total. We have interest only at 6% for 9 months or $483/month
  • Closing Cost $2,940 which included survey and title policy to help seller.
  • Down payment $3,876.12
  • Insurance $400 during rehab
  • Taxes will be @ $200/ month
  • Utilities $100 / month

Rehab $10,000

ARV expected @ $135,000

This home will rent for $1275-1350 if we go that way.

The rehab is a lot of landscape and clean up of 1.85 acres

Exterior home clean up paint and trim

Full rehab of both bathrooms, paint in bedrooms, floor covering, appliances, countertops and dress up with back splash.

Estimated cost for holding 2 months $95,816

I think I got everything.

Thanks So Much. Tom, Roni Keith and Radford Construction

903-452-8843

If you can get a lot of the work done and out of the way quickly I think that this could be a very good first flip! You have margin for error and the chance of a nice cushion! Make sure you are including selling costs since I didn't see that mentioned. I lost about $11k to the realtors when I sold my first house and I didn't expect it. I still made a profit, but not as sweet as expected so just make sure your factoring those costs, about 6% of the sale price.

Also be VERY careful on the budget remember it is there for a reason. I budgeted $10k on my first house and spent $20k, LOL.

Keep those little nuggets in line and move things along as quickly as possible and you should be in a great boat!

Let us know how this flip turns out!

@Tom Keith I am really new to this, but looks very nice and most important promising deal.

Are you curently closer to fliping or renting property?

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