All Forum Posts by: Ben Pospisil

Tony  I’m having similar issues here in dallas.  Did you ever get your squared away?  I’d love to chat with you about it  

Investment Info:

Single-family residence buy & hold investment in Dallas.

Purchase price: $235,000
Cash invested: $120,000

1915 Dallas Tudor. Completely rehabbed and rented. Plan to sell soon.

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

Referred by an agent who I no longer work with. haha

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

Agent found it. Gave great comps. ought it from an older lady who ended up moving into a nursing home. Not much to negotiate. She was pretty set on price.

How did you finance this deal?

Hard money.

How did you add value to the deal?

Updated everything. Turned a large bathroom into 2. Updated the carriage garage and pour a slab. Built a fence in the backyard and fixed the foundation.

What was the outcome?

HIt the market at a very low comp. price, but Dallas seemed to have pressed pause on anything over $400K.(mine was $450). Had to refi. out of the hard money into another hard money loan with lower interest and rent. Breaking even on this one. :(

Lessons learned? Challenges?

Dont trust partners, trust results. -Grant Cardone. Im a buy and hold or wholesale guy, I had done 3 prior flips in dallas prior to this but 2 of the 3 I still hold as rentals and the other 1 I sold. I should have stuck to my plan/results and not deviated into a fix and flip model, especially in a new market. Just wholesale or buy and hold. :)

Investment Info:

Single-family residence buy & hold investment in Dallas.

Purchase price: $235,000
Cash invested: $120,000

1915 Dallas Tudor. Completely rehabbed and rented. Plan to sell soon.

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

Referred by an agent who I no longer work with. haha

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

Agent found it. Gave great comps. ought it from an older lady who ended up moving into a nursing home. Not much to negotiate. She was pretty set on price.

How did you finance this deal?

Hard money.

How did you add value to the deal?

Updated everything. Turned a large bathroom into 2. Updated the carriage garage and pour a slab. Built a fence in the backyard and fixed the foundation.

What was the outcome?

HIt the market at a very low comp. price, but Dallas seemed to have pressed pause on anything over $400K.(mine was $450). Had to refi. out of the hard money into another hard money loan with lower interest and rent. Breaking even on this one. :(

Lessons learned? Challenges?

Dont trust partners, trust results. -Grant Cardone. I was new to Dallas when I bought this so I mistakenly trusted my agent to give me the worst case numbers on this fix and flip. Well he did. But they didnt match what the market wanted to pay.
Also, Im a buy and hold or wholesale guy, I had done 3 prior flips in dallas prior to this but 2 of the 3 I still hold as rentals and the other 1 I sold. I should have stuck to my plan/results and not deviated into a new model. Wholesale, buy and hold. :)

@Will Fraser Thank you for the kind words. What's funny about this deal was this was my VERY FIRST wholesale/door knocking deal. It lit such a fire under me. here is a picture of the inside:

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $200,000
Cash invested: $60,000

Boarded up duplex in Dallas.

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

400 DOM. MF in a hot neighborhood in Dallas. I also found out through codes that even though the city rezoned this property as commercial, because none of the previous owners ever pulled commercial permits the property remained residential. This was the reason every investor passed on the deal.

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

Drove the neighborhood, saw the home boarded up and started asking questions.

How did you finance this deal?

Hard Money

How did you add value to the deal?

Did most of the work myself.

What was the outcome?

Spent 5 months gutting it. Found renters for 1 side and hacked it for 2 years. Now it's fully rented.

Lessons learned? Challenges?

Had a lose budget and should have had a 3rd party manage it for me. Im learning to be better with numbers and I learned labor gets expensive quickly. Thought if I threw a bunch of day laborers at this project it would speed up the rehab...nope. Just caused me to overspend on the demo.
When I went to refinance my banks appraiser used the 3 worst comps in the entire area. It came in like $75K lower and all my cash stayed in the deal. Almost sent me on a downhill spiral.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $75,000
Cash invested: $3,500
Sale price: $231,400

Duplex with a 3rd (non-conforming) unit downstairs (C).

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

I knew I could invest a limited amount of capital and get some great returns based on the location.

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

I door knocked when I found this deal. The Landlord was outside the home collecting rents when I pulled up. I asked him if he was willing to sell and he said maybe. I offered him $70K on the spot and he said "Oh lord no. Its gonna have to be a lot more than that." I said " OK, how much more?" He said "At least $5K more." haha. I said "ok." and I went to the Fedex store down the street and printed off the contract.

How did you finance this deal?

Bank loan. 5/1 arm at 3% int. for 25yr. Put down 10%. T&I were $2000/yr. Payments were $575.

How did you add value to the deal?

Renters living in unit A and B were paying month to month @ $400/m. Unit C was vacant. Unit B moved out right before I closed. I invested $1000 worth of paint and carpet in to Unit B and moved in renters form Colorado for $1000/mth. I found a renter for Unit C at $900/mth and increased Unit A's rent from $400 to $600.

What was the outcome?

I held this rental for 12 months. Then was offered $240K by another investor.

Lessons learned? Challenges?

The C unit was using B units power. I was covering both units expenses but they ended up getting into a fight and B unit called codes on C units illegal power supply. And 1 week before my closing I lost both tenants!!!. Luckily My new buyer was happy because he planned on rehabbing both units..