All Forum Posts by: Brady Groves

@Mitchel Foster

Hi Mitchel

What small town in South Dakota did you grow up in?

I myself grew up in Hill City.

I will be in the Scottsdale area in March and am looking at golfing while I am there. Any courses you would recommend or maybe we could meet up while I’m there?

Best of luck to you in your real estate investing!

Looking forward to connecting with everyone. I currently have one investment property that I use for a nightly rental in the Black Hills of South Dakota. My business partner and I have recently started diving into information. We are going to be doing buy and hold properties in Rapid City, SD. We are planning on using the BRRRR method. Really excited to learn and can't wait to get our first deal done in our new business. We are driving for dollars and evaluating every deal we come across.

Thanks for reading!

Brady

Looking forward to connecting with everyone. I currently have one investment property that I use for a nightly rental in the Black Hills of South Dakota. My business partner and I have recently started diving into information. We are going to be doing buy and hold properties in Rapid City, SD. We are planning on using the BRRRR method. Really excited to learn and can't wait to get our first deal done in our new business. We are driving for dollars and evaluating every deal we come across.

Thanks for responding. You know a lot of people look at failures as a bad thing. I do not. Sometimes the only way you learn is to fail. I cannot remember who said it but "if you are not failing you are not trying" it is part of life.

James

Thanks for responding. The Black Hills is a great place for rentals. I actually co-own a property management business in the Hill City and Custer SD area. If there is a way we could exchange numbers and just talk that would probably be the best. 

Yeah the biggest and I feel is the most important lesson I learned was if it sounds to good it probably is. It was a good lesson to learn and if I had the choice to do it again, I would. Taking that experience and moving forward and trying to find my next deal.

Thanks for responding!

Investment Info:

Single-family residence private money loan investment in Rapid City.

Purchase price: $175,000
Cash invested: $1,200
Sale price: $185,000

Bought this house with owner financing. The relationship ended badly and had to sell before I was ready to as the note was being called.

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

I was trying to grow my portfolio.

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

Previously managed the house and when the owner was thinking about selling it I aske what they wanted for it and if they where interested in owner financing.

How did you finance this deal?

Owner Financing

How did you add value to the deal?

It was a chance for us both to make money. With options in the future.

What was the outcome?

Ended up selling before I wanted to.

Lessons learned? Challenges?

Be careful and make sure they understand what you are thinking and how you want to do it. Do not leave a stone unturned. Always be on the same page.

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

Not on this deal

Investment Info:

Single-family residence commercial investment investment.

Purchase price: $235,000
Cash invested: $7,000

Bought a vacation cabin in the Black Hills of South Dakota

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

Honestly it just fell in my lap. At the time I did not know I wanted to be in real estate investing. My mom was looking for a property and she actually tried to purchase the property and that didn't work out for her. Instead of letting it pass on to another person I was able to jump on it and it became the first house I have ever bought

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

My mom was the property manager for the owners. When they said they wanted to sell they gave her first option and than me the second option before it went public. We got an appraisal and agreed to a number after that.

How did you finance this deal?

I got a conventional 30 year loan. In the process of refinancing and moving it to a commercial loan to pay off sooner.

How did you add value to the deal?

Being able to let the owner know I was going to take care of it and that they would be welcome back anytime. This meant more to them then anything.

What was the outcome?

I ended up buying it. Still own and manage it.

Lessons learned? Challenges?

There is a lot that goes into deals and takes more time than what I thought it would. Getting a property inspection is very important no matter how well you know the property. The biggest challenges came with getting financing as I was only 21 years old at the time.

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

My real estate agent was my mom. I would recommend her but would also be upfront that we are related.