Hey BP Community,
I wanted to take some time and share this project that literally would not have happened without Bigger Pockets. Thank you again @Joshua Dorkin for taking the risk to start this. Many of you have shared your stories and it's so encouraging, so keep it up!
What we were (and are) looking for
Flips and Buy & Holds. This was prior to me getting my RE license, and I connected with an investor/agent here on BP, shout out to @Erin Wysocki. She helped us find this deal (as well as several others).
We walked into this flea ridden mess of a house, and smelled the potential immediately. It was listed at $87.5k , and there were comps in the neighborhood just under $200k. The listing had it as a 2/2 with 1300 SQ FT, but in reality, it was a 3/2, with a potential for a 4th bedroom with closer to 1500 SQ FT. After some quick math, we knew this was a great deal and proceeded to put in a cash offer. Erin connected with the listing agent and found out there were multiple offers the first day, so we decided to come in at $5k over asking at $92.5K.
*Key Learning Most BP'ers, and especially those in the Orlando & Central Florida area would agree that good deals are getting pretty scarce on the MLS. Of the three deals I've closed off the MLS to date, we have come in at or over asking price. It’s easy to get caught in up in getting an “amazing deal” on the front end, but with the amount of competition there is, it’s been well worth it to come in higher. Knowing my numbers: comps and rehab/holding costs has allowed me to do this with confidence.*
Acceptance to Close
Needless to say, they accepted our offer and we were thrilled. I've connected with several great hard money lenders, both through BP and my local REIA, but I wanted to see if I could raise private money for this purchase. As @Brandon Turner has said, REI is "sexy" and people are interested so I put together this presentation:
In addition to the BP community, I shared it with family, friends and local investors that had expressed interest in what I was doing. I got some really great feedback about the presentation and the deal, and received a lot of interest and queries.
I was hoping this would be a stress free transaction, but as with so many deals, it came right down to the wire.
A private investor from BP reached out to me a few days before close, and expressed interest. We were supposed to close on a Friday, and after he did some due diligence, committed to the deal on Thursday afternoon. He was planning to lend out of his IRA and needed a notarized mortgage and promissory note by the end of the day in order to send wire instructions to his IRA trustee. I scrambled to put these together, call a notary friend and got them signed, notarized, scanned and sent back to him within a couple hours. We were both doubtful that all the pieces would fall into place with the looming deadline, but somehow they did! The wire instructions were sent Friday morning, but the money didn't make it in that day, so we spent a weekend wondering if it would closeâ¦ Monday morning came, the money was there, and the deal closed!
... Stay tuned for part 2 tomorrow
Must be nice
You're rocking it Andrew! Thanks for sharing.
what must be?
@Andrew Davis I think I was itching all day from those fleas lol! Thank you for being an amazing client to work with!!!! You weren't hesitate to pull the trigger and that's what you need to get the deal done. I'm so happy the deal came thru and you do an awesome job with the rehab. I was on pins and needles all day Friday with the wire.
Excited that you joined the Keller Williams team! Looking forward to working with you and doing deals together in the future. Now lets get a buyer for that property!
@Andrew Davis Way to Go for You and your team. Looking forward to hearing "The Rest of the Story". Take Caew
Congrats, @Andrew Davis ! I'm glad BP could play a role here for you.
I'm still amazed the my IRA trustee turned that around so fast, @Andrew Davis . I highly recommend my IRA trustee to anyone looking for an affordable, no frills SDIRA solution. Since my account is smallish it was key to have low fees ($24/quarter, $12/quarter per RE investment, $25 rush fee, etc.). I'm not sure if I am allowed to mention the name here so I won't.
Rock on @Andrew Davis ! Love to hear stories like this :)
This is interesting! Can't wait for part 2! Taking notes while at work!
Congrats @Andrew Davis . Sounds like a stressful but successful week!
Inspiring story! Keep up the good work.
Originally posted by @Andrew Davis :
what must be?
Patrick, when you say it must be nice, we assume you mean that it must be nice for Andrew to see all of his hard work come together. It must be nice to see untold hundreds of hours up late, up early, researching his market, building his network, sweating out the details and generally doing the things that others were not willing to do...finally come together in this end product. So yes, this is very nice and gratifying, but it definitely wasn't as easy as "pick a house off the mls and flip it." Congrats to Andrew, your lender and realtor. Here's to a quick sale!
Thanks @Yasmine Bisumber ! Can't wait to hear the story about your first flip:)
@Erin Wysocki thank you for being an amazing agent!! You were always on top of things, great with follow up and just overall awesome.
I'm glad to be apart of the KW team and look forward to doing big deals with you as well!
@Tom Keith thank you sir! Part 2 coming tomorrow morning...
@Clarence Scott I'm so glad... Keep going!
Thank you sir, BP played and continues to play a huge role in my investing journey.
@Paul Jamgotch , so am I. As @Erin Wysocki said, we were on pins & needles there for a while. I'm so glad it worked out, and look forward to doing deals with you in the future, you have been great to work with!
Thanks @Brandon Turner , I took a page right out of your book!
@Terry Free , glad to hear it!
im happy to see people getting such value out of this community, its only my second day and im still excited and motivated by hearing of peoples hard work and follow through! congrats
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing