VERIFIABLE track record. All deals are in Athens GA (Home of UGA), as follows:
Put 8 duplexes (16 doors) under contract for $520k. Rehabbed with $30k cash and got all of them rented out. Assigned the sale for $675k in under 90 days. Wholesale profit was $125k in my IRA for zero taxes!
Nov 2014- Bought a triplex final ARV at $350k at 580 Sunset Dr for just $37k. Rents $2900/month. Could flip for $260k profit or nearly 200% profit or 3% cashflow in an appreciating area. I'm holding this puppy free and clear!
2014 - Bought 140 Windy Hill Pl duplex for $47k, Rehabbed. Rents $1400/month. 2.2% cash flow. BONUS- zoned to build a new triplex in back for extra 1800/month rent and converting to 5-unit property. NOI 25+k
2014- Bought 310 Glenhaven Ave for $27k and will put it on the market next month for $129k. Will only make 90% profit after commissions, etc, but used IRA so at least no taxes.
2014- Bought 210 and 216 Eaglewood Ct for $56 and $52k respectively and have them on the market for $125 + $139k. Renting out for $3200 total. 2.5% cashflow. or, sell for 100% profit. 216 bought with my IRA so no taxes there.
Bought 323 The Plaza for $86k and have it rented for $3000/month and on the market for $319k? This is a 2.4% cashflow or sell for 153% profit margin. or $193k profit
We are blessed to have one of the best markets in the US. Combine that with we do some seriously diligent work. We feel like our performance in 2014 can get even better for 2015. Always looking to get better and learn more. Thanks BP for helping us blow up!
Congrats, I hope that someday I can produce numbers like those. But on a side note, on the sunset house it says that it has asbestos siding, is that an old building description?
Yes. We encapsulated instead of removed. Wrapped it all up in hardiplank.
Congratulations on your success @Jack Tucker This is very impressive. Have to make a trip to A-town soon and catch-up with you in person.
That's killin' it man - congratulations @Jack Tucker on an amazing 2014!
Thank you for your kind words of congratulations. We have big plans for 2015, because 2014 was unusually good. Last year, with the help of BP, we did our first wholesale, first flip, first sub-2, first self-directed IRA deals, first vacation rental, first real estate LLC, first Partnership, and first Property Management of a Complex. We would love to get more passive participants (ie private money) working with us because we only can choose to bring in the best deals and let many go because we may not double our money. Our local market seems really hot right now, so we plan on making the most of it. BP has been absolutely huge as a factor of our strides. I listen to podcasts at least 1 hour per day and soak in the knowledge so generously offered on this site.
ON your IRA deals if your doing this work yourself I think you need to be cognizant of UBT tax.. IRA needs to be arms length from my understanding.
regardless of you and the tax man those are some pretty incredible numbers as I work in about 15 markets nationwide your numbers are the best I have seen or heard of.
I did do a lot of NON recourse financing in a condo project their in Athens last year.
The 86k deal that's rented for 3k what is that its not a sfr ? multi or commercial?
Wow! Nice work. Time to hang up my snow shovel for a peach picking basket!
@Jay Hinrichs you are correct about the IRA UBT taxes. We are careful to follow the nondisqualified individuals and activities regs for the self-directed Roth.
We have exchanged messages in the past and your assessment of our results means a lot to me because of my respect for your substantial experience. The positive feedback from an accomplished giant (in comparison to our young business) is both humbling and motivational. I hope that we continue to cross paths.
As we said on the farm, "Bloom where you're planted." However, we seem to be in a bit of a hot bed. This is an article on BP that ranks the Atlanta suburbs as the #1 place in the nation for rent returns. http://www.biggerpockets.com/renewsblog/2015/01/29/revealedtop-20-u-smarkets-highest-rental-returns/
Wow, you killed it, very impressive!
May I ask how you found those deals?
Here's the crazy part... I DIDNT FIND THEM, THEY FOUND ME.
- Put 8 duplexes (16 doors) under contract for $520k. Rehabbed with $30k cash and got all of them rented out. Assigned the sale for $675k in under 90 days. Wholesale profit was $125k in my IRA for zero taxes!
I wrote an entire string about this one at http://www.biggerpockets.com/forums/223/topics/135...
- Triplex final ARV at $350k at 580 Sunset Dr for just $37k. Rents $2900/month. Could flip for $260k profit or nearly 200% profit or 3% cashflow in an appreciating area. I'm holding this puppy free and clear!
A good friend and colleague @Ethan Atkinson Atkinson did a direct mail to what appeared to be a vacant house. He had the initial conversation and brought the deal to me so we could fix and flip together. He decided that instead of waiting for a rehab, (and I couldn't bare to actually sell this cash machine), he was satisfied with a hefty cash wholesalers fee.
- 2014 - Bought 140 Windy Hill Pl duplex for $47k, Rehabbed. Rents $1400/month. 2.2% cash flow. BONUS- zoned to build a new triplex in back for extra 1800/month rent and converting to 5-unit property. NOI 25+k
A neighbor of this vacant house heard of how I buy houses. I negotiated with the owner, closed the deal and gave the referring neighbor a cash finders fee... and an improved block.
- 2014- Bought 310 Glenhaven Ave for $27k and will put it on the market next month for $129k.
State politician and colleague investor bought this inherited house for $5k. Then the family started squaking that he was taking advantage of them. He wanted it off his books fast to avoid any media backlash and he knew I could pay cash and rehab quick. Phone call-contract-off to the races.
- 2014- Bought 210 and 216 Eaglewood Ct for $56 and $52k respectively and have them on the market for $125 + $139k. Renting out for $3200 total. 2.5% cashflow. or, sell for 100% profit. 216 bought with my IRA so no taxes there.
210 Eaglewood - This came from a tip from a next door neighbor/family friend/ #1 real estate sales agent in Athens Reign Streiter. This was a foreclosure on the MLS listed by Ethan Atkinson. One ex-investor lost 2 units out of 8 total in the complex. Negotiated AGAINST (my now partner) and he gained my respect and a double commission.
216 Eaglewood was the other property that the ex-investor was about to lose. After our 210 rehab and subsequent killer rental performance, THE NEW BANK CALLED ME and asked if I would be willing to buy 216 from them for $52k... Heck yeah! Now we use it as a semi-vacation property and got over 11k in two months last year. But that's another story! I Posted it here at: http://www.biggerpockets.com/forums/223/topics/152...
Folks... If you want to attract great deals, it's all about INTEGRITY. Your reputation is SOOO important if you want agents, neighbors, other small and large investors and even THE BANK to call you.
Wow Jack, great stuff. Super motivational to read about the success of fellow BP folks.
I'm flying into Atlanta to go to a cousin's wedding up in South Carolina and hope to check out some of your market while I'm there. Deals here in San Diego are not in that same ball park.
Congrats and keep us posted on your 2015 efforts!
@Jack Tucker Congratulations! These are wonderful results.
@Jack Tucker I am sure you hit when you said, "...If you want to attract great deals, it's all about INTEGRITY. Your reputation is SOOO important if you want agents, neighbors, other small and large investors and even THE BANK to call you"
Congrats on your amazing deals in 2014 and may 2015 be a great year for all of us!
Working to make 2015 eclipse these numbers. Working on a few off-market deals now.
I have not done a contract for deed, but the math is looking pretty good. Found a 1bed/1bath 4-plex with total rents of $1620 and an owner-finance at 5%, 20 year am and 10 year balloon. Would be open to any advice on acquiring an owner-finance. Please message me and we can chat! Should probably post this in another string...
@Jack Tucker those are impressive numbers and very encouraging for someone from ATL that is starting to look into multi-family units in the Athens market!
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