3rd Deal- First time land flipi first time using PM
Hi All,
I just closed, today, on my 3rd deal. It was a raw land flip (15 acres) in Alabama. I found this property through surveying another portion of it, and always ask what land is trading for and is there any more of it available. I was able to get it under contract for 37K. I knew I could get the cash from my bank through a line of credit or mortgage, but I was hoping to partner with private money to improve my deal velocity. So, I opted to partner with someone on a 50/50 split to establish a future partnership. I've known this person for 9 years and knew I had to have a good deal, not for him, but to convince his wife. He's the bank, but she is the committee/underwriter. So after this partnership was established, we closed on the land in April. I had a promissory note recorded for my half of the 37k (no interest). This cost me 284 bucks. A week later, I called someone I know who was looking for more land in this area, and struck a deal to sell for 97500. Today, my partner got his initial 37 back, and he and I each got a check for 29,200. There was still some value left for the buyer, as I feel we were 1500 an acre below market, but this helped keep us from wasting a few weeks over a few thousand bucks. This land was off-market and only happened because I asked could I buy the rest of it.
I have a 4th deal, a 3-2 SFR house that's hopefully going to close soon if they get a title issue resolved. I'll post details and pics of it then. My first deal was my primary that I turned into a rental that cashflows 285/month. My 2nd was a 2-1 SFR that I had to strip to the studs and remodel. It cashflows 250/month. I was a lurker for 5 years before I finally jumped in the water. Once you get one deal, the next ones will come at a faster clip. My 2nd deal took me a year to rehab, dealing with trade guys and such. I ended up doing some of it myself to learn and to have fun. My next rehab will go smoother I hope. Anyway, let me know if you have questions and I will answer. I hope this post helps to inspire and motivate others. None of this would have been possible without this community, it's creators, and the people who participate in it. Thanks for reading.
Clint