Casey, IL · Member since 2017 · 175 posts · 308 votes
Good morning. In April 2016 I had to file bankruptcy from debt that could not be managed anymore after a divorce. I turned 34 this morning, and I just wanted to say Thank You to everyone at BP. I found your show/website last December; and started my LLC March 3rd. We closed on our first Tri-plex May 15th (got our first tenants on July 1st after some renovations). We close on a Duplex in two days (bringing our total to 12 units); and if it wasn't from all the knowledge and inspiration that I have gotten from BP. I don not believe we could have accomplished so much, so quickly!! We have 11 of 12 units leased up with pre-screened tenants (Ty BP for the tenant screening guide) We have our eye on 5 more units, and we will hit 25 units (that cashflow 100-200/door) in our first year!! So, Thank you so much. I may be a "Newbie" but, I don't feel like it with all that I have learned from you guys!! Thank you So Very Much!!
So awesome @Michael Beeman! Love to hear stories like this. Keep acquiring and then come tell your story on the BiggerPockets Podcast! www.BiggerPockets.com/guest :)
Ty.. I was able to secure financing through a portfolio lender using our LLC and having myself and my minority partners co sign the loans. The tri-plex was a conversion. It is my least favorite deal bc the costs associated went too high bc I trusted the wrong contractor in the beginning and we ended up with 75k in it and it generates 1600/month in gross rents with our on-site coin laundry. My second deal was a 6-plex that has 5 units filled now, it generates 3400 when fully rented and i bought it off an investor that had it sitting empty, it only cost 60,000 and took about 5k in work to maje it ready to go. It has 4 1br units and 2 2br units.. our third purchase was at an auction, it was a single family home that costed 15k after auction price and renovations. Now, it was a heck of a deal and I didn't really know what I was doing when I put it on the market at 550/month bc it rented in 24 hrs. I was probably 100/month under market. Our upcoming duplex should generate 1200/month and cost us about 40k after renovations. Some of our favorite value adds so far have been separating out electricity expense on some of these old multi family units, and coin operated laundry. I have been lucky in finding these properties by telling ppl what we were doing. We found the duplex and 6-plex off market from word of mouth..
So awesome @Michael Beeman! Love to hear stories like this. Keep acquiring and then come tell your story on the BiggerPockets Podcast! www.BiggerPockets.com/guest :)
@John Thedford Yes, Persistence AND Belief pays off. Persistence will get you there, and Consistence will keep you there!!
@Brandon Turner Doing the podcast is on my goals list! I'll fill out an application one of these days soon. I offered on a Tri-Plex this morning. So, hopefully getting that accepted will be my Birthday Present today. That would put us at 15 units! I'm trying to get a hold of an individual that has a large older duplex here locally sitting empty. I want to see if I can swing seller financing on it!
This thread gives me hope that my investing career is not dead! I am currently facing a bankruptcy Chapter 7 situation after a terrible experience with bad mentoring and a criminal GC. I am finding myself struggling to stay positive and this story has given me a new hope of being able to acquire rental properties over the next 10 years without qualifying for conventional loans. Thank you very much for documenting your challenges and successes so that others may learn from you and gain confidence that there is light at the end of the tunnel!! :)
@Alicia Wisney Definitely glad it gives you hope!! It can still work out, and honestly some deals are better off-market with owner-financing. If you ever need any encouragement or ideas; shoot me a message.
@Sam Shueh Yes, lenders have the first place on the notes.. The one note where I got seller financing, that lender has a quick claim deed if I get 60 days delinquent. I found another 8 unit building today, that I don't have the money for yet. But, my mother is wanting to get more passive income, and the deal is a good one. Cash on Cash ROI looks to be between 30-35% in year one and it should generate 1100/month in revenue after all expenses including management fees. So, I believe she is going to purchase this building and pay our property management company, to manage the building for her. I found this building somewhat off-market through a "FOR SALE BY OWNER" ad online. It bugs me a little to find this good deal, and just hand it off. But, I mean.. It's my mom, and It'll be a good one for her. She needs a little more passive income at 55 yrs old.
@Yukiko Nakayama Yes, I have an agent. But she has never found me a deal. She just shows me the properties, I have found every deal online through various listing websites, and I found my best deal, our 6 unit building, through word of mouth.
That's awesome to hear that you were able to bounce back like that and keep moving forward instead of dwelling on the past! Congratulations, look forward to reading of more success from you!
Wow, this post is inspiring. You're very motivated to acquiring those deals and you have just encouraged me to get off my butt and get rolling. I have been interested in REI for some 20 plus years but due to circumstances I won't express here I put those desires to the side. It was a fluke that I found a deal I couldn't set aside any longer so I have my first property which I used some very creative financing to purchase. I have this large insurance policy that I've had for several years that had a value of more than $20,000 and decided to use that to fund some of the purchase price. I had another insurance policy that was underfunded by my payments and the value was dropping so I cashed that out to fund the cosmetic fix up. The property is already rented with long term tenants. Part of the financing came from the seller in which he retains receipt of the rents for 3 months. In total I have about $25,500 into the property that has 2 tenants for a $775 monthly rent. My insurance company appraises the value of the property at $67,000. The loan from my insurance policy has a 4% per year interest on the remaining balance of the loan. I therefore decided to pay back that loan at $200 per month (roughly 10 years) but I don't have to, the interest could just build onto the loan face amount.
I plan to use the $67,000 value from the insurance to go to the bank to get an equity line of credit so I have funds at hand for more good deals. They are all over the place. My searches for property are within an hour's driving distance from my home. This gives me the ability to find deals that I might not be able to otherwise. Let's raise a glass to forward thinking with good deals. Great job @Michael Beeman, I appreciate your post and wish you well.
@Troy Luster Thank you sir.. This actually started out as a private email to Brandon just thanking him for his help that he unknowingly gave. And he asked me to share my story on here.
@Hunter Johnston Thank you!! Keep pushing forward and making things happen.. I love the quote "don't say it can't be done; ask how it CAN be done"
P.S. I also spoke with Brandon and then Craig with BP engineering; about a feature on the BRRR calculator that would allow for the "post-rehab" rents to be different than the beginning rents on a BRRR project.. So, when that happens, I can feel like I added something positive to the site in a very small way!! They told me they were going to try and do it!
@Thomas Lorini@Earnest Boyd@Hunter Johnston I hope all is well with you guys. We have just signed a purchase agreement to add 5 more units 3-2BR and 2-1Br units to the portolio. I'm excited. That brings us to 20. And we are managing 27 because my mother has a 7 unit building that we will take over management of, next week.