All Forum Posts by: Ben Fernandez

More of the terms are necessary, in order to provide feedback on your partnership.

As far as the interest rate, 10% is not bad. However, there are likely multiple more terms involved in your partnership with this hard money lender.

Congratulations on your new purchase! 

My advice would be to evaluate your exit strategy to see how the asset will perform if you were to move. This is called a cash flow analysis.

Whenever a property is under $100k and the 3% won't yield at least $2,500, in most cases, agents will request a flat fee. Therefore, your agent isn't doing anything uncommon.

You can always shop around to see if you can find someone who will work by a commission percentage.

Make the offer that suits your assessments. If they aren't playing ball, walk away.

You will need to make sure the home is code compliant. If not, you assume the risk and all potential consequences attached. Evidently, they did not pull permits.

You're targeting the right aspect to increase your affordability, based upon considering properties that have current rental income. House hacking is a great method.

What I would recommend is that you also target homes that may require some renovations and pursue a 203k or HomeStyle loan product. These loans will allow you to couple the purchase and the renovation in one swope.

You should also be aware of any down payment assistance program you may be able to use as well.

Considering homes that need renovations, will open up a whole new avenue for you. You may want to partner with a few investment firms near you or wholesalers as well being that a lot of these opportunities may be off market deals.

Keep at it! You'll find something! I love that you're already being creative. Keep up the good work.

- Viable example.

- Not currently.

3bed/1ba, 1000 SF minimum. Focusing on all-in 200k. Closing in a few weeks or less

Hi BiggerPockets community!

I’m excited to introduce myself as an investor and realtor with 18 years of experience in the real estate industry. Over the years, I’ve gained hands-on knowledge in a variety of areas, including tax liens, tax deeds, rental properties, and fix-and-flips. Additionally, I’m a licensed realtor in Pennsylvania, which has allowed me to expand my expertise and build a solid foundation in both investment strategies and the local market.

I’m eager to connect with fellow investors, share insights, and learn from this amazing community. Looking forward to exchanging ideas and experiences!

Feel free to reach out if you want to chat about any of these topics.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $68,000
Cash invested: $70,000
Sale price: $195,000

I purchased a long-term rental property from the MLS that had multiple contractor issues and significant delays. Despite facing setbacks, including a year-long renovation process, I tackled the repairs, improved the interiors, and addressed all concerns. In the end, the project was completed successfully and sold for a profit. This experience proves that even with challenges, strategic renovations and persistence can lead to a profitable outcome.

What made you interested in investing in this type of deal?

I didn't think I would find a deal to begin before the end of the year. But I found one on the MLS through an awesome realtor.

How did you find this deal and how did you negotiate it?

I worked with a realtor to help me find this one.

How did you finance this deal?

Cash

How did you add value to the deal?

We had to replace 90% of the electrical, created an open concept, primarily all new drywall, new boiler, new roof, etc. It ended up a beautiful property.

What was the outcome?

We sold to a couple which was their first home.

Lessons learned? Challenges?

When you see red flags, adhere to them even if the prior relationship has been good. This was the worst project I’ve ever done. It should have been 2-3 months and I was in it for 7 months renovation and then took almost 4 months to sell. We hit the first shift of becoming a favorable buyers market.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes. I’m open to share my referrals to any who’d like to know.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $74,000
Cash invested: $25,000
Sale price: $145,000

I acquired a property from a couple needing to relocate, with significant repairs required. After renovating, I updated the interiors, addressed exterior issues, and enhanced the overall appeal. Once completed, the property was resold to new homeowners, providing a solid return on investment. This project highlights how purchasing from motivated sellers, making strategic renovations, and selling to retail buyers can lead to successful outcomes.

What made you interested in investing in this type of deal?

The owners reached out to me from a direct mail campaign. When we met, I learned that it was a project I was interested in. So I made them an offer. They liked my offer and the rapport I built with them and decided they wanted to sell to me even though another offer was higher.

How did you find this deal and how did you negotiate it?

The owners called me expressing interests in selling after receiving direct mail. I negotiated by being honest and transparent about every step in the process.

How did you finance this deal?

I purchased this deal with a private/hard money lender.

How did you add value to the deal?

There was minimal demolition needed on this project. I revitalized the front and rear lawns, fully updated the kitchen and bath, along with new flooring, paint and the works.

What was the outcome?

We sold to an attorney who provided a retail-cash offer and quick close, relocating to the area.

Lessons learned? Challenges?

There were some communication learnings on this project where I acknowledged to emphasize expectations.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I would recommend my lender on this one. All other parties were used from a prior project. I’m loyal with people who provide good service.