Update on me and my flips including a $500k + purchase

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Update on me and my flips including a $500k + purchase

Mark Ferguson
Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes

Hey everyone, I have been busy this year and have not had a lot of time to post on here. I thought I would post a quick update on what I am doing. 

1. I am up to 16 rentals. I bought five more in 2015 and plan to buy 12 in 2016. We will see how that goes in the Colorado market. I am thinking of expanding to another state. I am thinking about doing a bulk refi on 8 of my current rentals. 

2. I have 11 flips going right now. I just bought a $500k + flip last week with an ARV of $840k, but it has some occupancy issues I have to deal with. We will see how that goes!

3. I hired a project manager for my flips and rental rehabs. It takes a load of my plate as far as dealing with contractors, but it added a babysitting job getting him up to speed on what I want. 

4. My blog is doing awesome and continues to grow.

5. I still have the Lambo and it has been awesome. I have owned it 18 months or so and it worth about 75% more than I bought it for. 

I have all my goals set for 2016 and I am looking forward to an awesome year. 

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Jerry W.Pro Member
Moderator
Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
10y

@Mark Ferguson, it is great to see you posting again.  I added 7 houses last year on my quest to hit 50 houses, but only one house this year.  Our market is getting hit hard due to falling oil prices.  I think your emphasis on flipping and of course your great real estate office are the way to go.  Get cash flowing rentals when you can.  I expect my market will continue to drop for the next couple of years.  I sold one small tri-plex this year that was way more work than it was worth.  My goal this year was to catch up on maintenance I had fallen behind on so I had as few expenses as possible in the next few years.  I may be preaching gloom and doom but I see most of Wyoming being hit hard the next 2 to 5 years.  Cheyenne might be ok as it has very little dependence on oil prices, but there may be some government layoffs.  Casper and Douglas may have some opportunities in 2 to 5 years if things continue the way they are going now.  I have done some out of state investing, but it is always harder than it looks.  I will look up your blog as I have not read it for awhile and have always enjoyed it.  It was something like investfourmore?  Anyway congratulations and someday we will be able to connect when I come through.  Keep up the good work.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Mark Ferguson  Very well done and I think a lot of take aways for those that want to build a successful career.

    GET a Re license so you can get into the business and have MLS access. Build a team, never know when team members feed you deals.

    take advantage of flip opps to create cash..

    Buy rentals is you want to be in the rental business

    Enjoy the fruits of your labor.. !!!

    Now don't go chasing rainbows !!!  you have done well on your home turf !!

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    1Reply
  • Dean Harris
    CPA & Certified QuickBooks ProAdvisor · Saint Paul, MN · Member since 2015 · 8 posts · 2 votes
    10y

    Are your rentals SFH or MFH? Looking to buy my 1st rental in 2016. Just wondering if MFH is less risky. Would appreciate any insight you could share.

    0Reply
  • Mark Ferguson
    OP
    Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
    10y
    Originally posted by @Dean Harris:

    Are your rentals SFH or MFH? Lo1 oking to buy my 1st rental in 2016. Just wondering if MFH is less risky. Would appreciate any insight you could share.

     I have 15 single family homes and 1 duplex 

    0Reply
  • Mark Ferguson
    OP
    Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
    10y
    Originally posted by @Jay Hinrichs:

    @Mark Ferguson  Very well done and I think a lot of take aways for those that want to build a successful career.

    GET a Re license so you can get into the business and have MLS access. Build a team, never know when team members feed you deals.

    take advantage of flip opps to create cash..

    Buy rentals is you want to be in the rental business

    Enjoy the fruits of your labor.. !!!

    Now don't go chasing rainbows !!!  you have done well on your home turf !!

     Thank you Jay, I agree about staying where it works, but our market in Colorado is one of the hottest in the country and it is tougher and tougher to find good rentals here. 

    0Reply
  • Henry R.Pro Member
    Rental Property Investor · Saratoga County, NY · Member since 2013 · 178 posts · 73 votes
    10y

    @Mark Ferguson Wow! That is impressive! So many buildings in one year. I can't even get one yet. Will take some time and read your blog for sure.

    Great work!

    1Reply
  • Mike MacDonald
    Flipper/Rehabber · Denver, CO · Member since 2015 · 4 posts · 2 votes
    10y
    This is an encouraging post! I am in Grand Junction on the west side of the mountains from you. I am constantly looking around and seeing properties, not listed, that I think would be great investments for rehabs for flips or rentals. I am looking get into my first house so lots of research at this point. You mentioned you purchase mostly through mls. Have you ever approached home owners or have any ten members that search for run down homes to talk to owners? Wondering about the effectiveness of this strategy.
    1Reply
  • Mark Ferguson
    OP
    Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
    10y
    Originally posted by @Mike MacDonald:

    This is an encouraging post! I am in Grand Junction on the west side of the mountains from you. I am constantly looking around and seeing properties, not listed, that I think would be great investments for rehabs for flips or rentals. I am looking get into my first house so lots of research at this point. You mentioned you purchase mostly through mls. Have you ever approached home owners or have any ten members that search for run down homes to talk to owners? Wondering about the effectiveness of this strategy.

    Hi Mike, I have and it works, but takes a lot of leg work. If you are trying to buy REO properties before they are listed that will pretty much be a waste of time.

    0Reply
  • Kevin Shuler
    Investor · Denver, CO · Member since 2015 · 38 posts · 5 votes
    10y

    @Mark Ferguson. Love what you've done/are doing. I'm a car junkie, and have been making some money in that game since college. I'm up to 2 rentals, and am about to pick up a 3rd ASAP. My goal is 2-3 more in 2016. 

    Would you say that the growth is exponential at a certain point? IE: X number of rental properties/flips, X in free cash flow, etc?

    Thanks!

    Kevin

    0Reply
  • Mark Ferguson
    OP
    Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
    10y
    Originally posted by @Kevin Shuler:

    @Mark Ferguson. Love what you've done/are doing. I'm a car junkie, and have been making some money in that game since college. I'm up to 2 rentals, and am about to pick up a 3rd ASAP. My goal is 2-3 more in 2016. 

    Would you say that the growth is exponential at a certain point? IE: X number of rental properties/flips, X in free cash flow, etc?

    Thanks!

    Kevin

     Hey Kevin, I am curious how you are making money in the car game? I have a problem with not being able to sell my cars! 

    I think it gets easier with more rentals and flips, but there are also more challenges as well. It can get tougher to finance them the more you have and you need more contractors and management in place the bigger you get. If you can get those two aspects in place it is definitely easier. 

    0Reply
  • Kevin Shuler
    Investor · Denver, CO · Member since 2015 · 38 posts · 5 votes
    10y
    Originally posted by @Mark Ferguson:

    I think it gets easier with more rentals and flips, but there are also more challenges as well. It can get tougher to finance them the more you have and you need more contractors and management in place the bigger you get. If you can get those two aspects in place it is definitely easier. 

     Just like any commodity, you can't get emotionally attached to anything (keep that Diablo though!). There's a need for a particular type of car in Colorado, whereas other local states don't necessarily care for and vice versa. On a small scale, find a make and model that you know will do well here and you're comfortable learning about. Then start searching CL or Autotrader for that car, but I've found summer is generally better for this 'arbitrage' type of dealing.

    Obviously once you have your dealer license, it becomes much easier. You'll have access to auctions and discounted freight. 

    0Reply
  • Mark Ferguson
    OP
    Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
    10y
    Originally posted by @Kevin Shuler:
    Originally posted by @Mark Ferguson:

    I think it gets easier with more rentals and flips, but there are also more challenges as well. It can get tougher to finance them the more you have and you need more contractors and management in place the bigger you get. If you can get those two aspects in place it is definitely easier. 

     Just like any commodity, you can't get emotionally attached to anything (keep that Diablo though!). There's a need for a particular type of car in Colorado, whereas other local states don't necessarily care for and vice versa. On a small scale, find a make and model that you know will do well here and you're comfortable learning about. Then start searching CL or Autotrader for that car, but I've found summer is generally better for this 'arbitrage' type of dealing.

    Obviously once you have your dealer license, it becomes much easier. You'll have access to auctions and discounted freight. 

     I've been thinking about getting my dealers license. I did notice those same traits. I have bought 6 cars in other states because they were so much cheaper.  And a couple because they weren't available in colorado!

    0Reply
  • Leo Hefner
    La Mesa, CA · Member since 2015 · 12 posts · 13 votes
    10y
    Originally posted by @Mark Ferguson:

    Hey everyone, I have been busy this year and have not had a lot of time to post on here. I thought I would post a quick update on what I am doing. 

    1. I am up to 16 rentals. I bought five more in 2015 and plan to buy 12 in 2016. We will see how that goes in the Colorado market. I am thinking of expanding to another state. I am thinking about doing a bulk refi on 8 of my current rentals. 

    2. I have 11 flips going right now. I just bought a $500k + flip last week with an ARV of $840k, but it has some occupancy issues I have to deal with. We will see how that goes!

    3. I hired a project manager for my flips and rental rehabs. It takes a load of my plate as far as dealing with contractors, but it added a babysitting job getting him up to speed on what I want. 

    4. My blog is doing awesome and continues to grow.

    5. I still have the Lambo and it has been awesome. I have owned it 18 months or so and it worth about 75% more than I bought it for. 

    I have all my goals set for 2016 and I am looking forward to an awesome year. 

     So how is your 2016 shaping up? 

    0Reply
  • Mark Ferguson
    OP
    Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
    10y
    Originally posted by @Leo Hefner:
    Originally posted by @Mark Ferguson:

    Hey everyone, I have been busy this year and have not had a lot of time to post on here. I thought I would post a quick update on what I am doing. 

    1. I am up to 16 rentals. I bought five more in 2015 and plan to buy 12 in 2016. We will see how that goes in the Colorado market. I am thinking of expanding to another state. I am thinking about doing a bulk refi on 8 of my current rentals. 

    2. I have 11 flips going right now. I just bought a $500k + flip last week with an ARV of $840k, but it has some occupancy issues I have to deal with. We will see how that goes!

    3. I hired a project manager for my flips and rental rehabs. It takes a load of my plate as far as dealing with contractors, but it added a babysitting job getting him up to speed on what I want. 

    4. My blog is doing awesome and continues to grow.

    5. I still have the Lambo and it has been awesome. I have owned it 18 months or so and it worth about 75% more than I bought it for. 

    I have all my goals set for 2016 and I am looking forward to an awesome year. 

     So how is your 2016 shaping up? 

     I sold two of my rentals and stopped buying in colorado. Prices are too high to cash flow well. Flipping is going awesome. I have sold 11 so far this year and bought 12. I have two under contract to buy and three under contract to sell. 11 total flips in my inventory now and 4 more should be ready to put on the market in the next 1 to 3 weeks including the flip I bought for 500k. 

    2Reply
  • Leo Hefner
    La Mesa, CA · Member since 2015 · 12 posts · 13 votes
    10y

    very nice! 

    0Reply
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