Make $1M in 12 Months - Week 26 (Hey BP - it is BACK!)
If you have been wondering what's happening to my goal of $1M in 12 months through real estate Joint Ventures with Biggerpockets members...well, I've been busy in the past 6 weeks since my last update and the good news is: I am BACK and I promise to give you an update every week - every Saturday afternoon in fact.
If this is the first time you're reading this post, read the link below (you will see why I started this $1M in 12 months goal and how I did in the first 20 weeks):
Instead of just updating you BP Nation, I want this to be INTERACTIVE and a learning experience for you and for me. So, I will pose a question at the end of every posts and my hope is I will get experienced and newbie real estate investors alike to contribute. By doing so, we'll all learn from each other. If I received ZERO responses from the question, I might skip a week in my update.
I've also simplified the update so it's easier and less time consuming for me to write and it's easier for you to read. OK, here we go.
Over-all Financial Update:
The Good
Since my last update, we have since acquired 2 properties CASH - 2200 Seaton and 2520 Heather. We've also gotten good tenant/buyers for both 327 Clarendon and 2409 Ruth Fitzgerald. The tenant/buyer for Clarendon gave us $6,000 so far ($4,000 more) and for 2409 Ruth Fitz, we got $4,000 ($4,000 more). We've found that by asking the downpayment in installment, more people can afford our rent to own program. Lastly, I've wholesaled a duplex in Cincinnati, Ohio to 2 BP members (Richard from Chicago and Susan from Canada) - they partnered on this duplex.
Properties Acquired Since Last Update:
2200 Seaton
ARV: $235,000; Repairs: $8,000; Acquisition Cost: $170,000
Exit Strategy: Sell on Owner Financing: $250,000 (20% Down + $1995/mo)
Stage of the Project: Renovation Started; Marketing to Sell it
2520 Heather
ARV: $140,000; Acquisition Cost: $70,000; Repairs: $30,000
Exit Strategy: Rent to Own at $155,000; ($10K down + $1600/mo)
Stage of Project: Getting BIDS from 3 different GCs (start of rehab next week); Marketing to Lease It
Properties Sold or Rented Since Last Update:
2409 Ruth Fitzgerald
Cash Received: $4,000 (non-refundable option fee) + $1,600 rent = $5,600
Cash Receivable: $4,000
327 Clarendon
Cash Received: $6,000 + pro-rated rent ($1,100_ = $5,110
Cash Receivable: $4,000
1126 Groesbeck
Cash Received: $6,336 (wholesale profit)
The NOT SO Good:
None of the fix-n-flip properties we have that are ready (Harvest, Virginia) have sold yet. We've replaced the listing agent on Harvest. We've decided to market these and our other properties simultaneously for rent to own. We've also lowered the price on both (reduced both by $10,000). Also, we've lost a good wholesale deal (Hyde Park) as the attorneys didn't agree on who which side will do the title work. We want to be in control (to be able to wholesale it) and so we want our attorney to do the title work but the seller's attorney wants to do the title work so he will get paid for it.
Question for the Week
For the more experienced investors out there - specially REHABBERS, do you acquire properties in the fall knowing that over the winter you can't sell it or do you wait until winter to start acquiring properties that you rehab over the winter so you can sell them come spring?
To know my answer, please post yours first :-)
Talk to you soon!