All Forum Posts by: Brahian Gutierrez

I agree with @Tracy Munger, past financials are not too important unless of course they were advertising certain returns and you made your offer based on those numbers. I usually add on special terms, that inspection period does not begin until access has been granted to the property, financials and leases have been given to the buyer, this helps with the urgency since inspection is contingent on these things, so if they take 5 days to give them to you, your inspection starts then, and your not at any risk of losing EMD. I think this is a red flag though, there shouldn't be so much push back. Don't be afraid to walk away, and if you have a great realtor, you'll have no issues finding your next deal. Best of luck, sincerely, your investment friend here in Orlando fl.

@Dakota Coburn

Sorry to hear about your experience. Most of the time lenders will give an extension. Go that route first and try and see if you can get the funds to get the things done right, even if it’s 20k and hopefully with that you can reach peak market. You can at least reduce your loss and learn from this one and not have to bail.

Here's the opportunity to own a CASH COW with returns that are unheard of nowadays. This deal consists of a corner lot Bar that has been in the same location for 25 years, RV hookup, and a cash flowing Duplex, all on one lot. The Duplex is rented out for 550 a month per side with tenants month to month. The Bar features a Dj booth, draft beer, Pool Table, darts, jukebox, new ice machine, new water heater, an ATM that pays the owner 20 cents per usage, no major repairs needed, and currently brings in 450-550 a night between Fridays & Saturdays, as the owner runs multiple businesses and usually only opens on those days due to lack of timing. However, with the Bar cash flowing at 1,000 minimum a week, and the Duplex at 1,100 a Month, this Investment will easily pay itself off in a 2-3 year period, and that's only with the Bar open Fridays & Saturdays. As an Investor, the ideal Investment strategy would be to place someone in charge of the Bar from Thursday through Sunday to increase the weekly cash flow to at least 1,500-2,000 or more. The Bar has transferrable Wine, Beer, and Tobacco license at the buyer's cost. The Duplex has one water meter for the entire property, 2 AC units, previously a SFH but the first owner had it converted to a Dupex and got the approval from the county 25 years ago and has been the same since with no violations or liens, but never reflected on tax records, therefore the buyer is responsible for inquiring with the county on digging for the paperwork or keep it as is since it's been that way for this long with no issues. The average monthly water bill for the property is $30 a month, average electric bill for the Duplex is $175 a month which the owner pays for the tenants but can easily be charged rather, the average electric bill for the Bar is $112 a month, the average dumpster bill for the property is $80 a month, and the owner pays an average of $158 a month for Fire & Liability Insurance, which is billed every 8 months but covered for the entire year. The current owner can convey the vendor's info if the buyer wishes to keep the pool table, dart machine, and jukebox since the owner has a 50/50 split on the revenue for the machines rather than charging the vendor any rent. The cash flow analysis in the link already reflects all owner expenses. Overall this is a money-making machine, and all income varies based on how the Investor chooses to run the bar hours, but it has the potential to literally pay itself off in a very short time.

This Biggest thing is to make sure you have an exit strategy once it's purchased. Also, know what kind of multi-family you're wanting to get, I would stay under 4 units to start with, once you go to 5 units or higher you begin to deal with commercial loans and those are a little harder to get a loan from and also a little harder to refinance. I've acquired quite a bit of multi-families in Daytona Beach fl, growing market and you can get a quadplex for under 200k, let me know if you would like to take a look at some of these properties. Best of luck

Investment Info:

Single-family residence fix & flip investment in Deltona.

Purchase price: $94,000
Cash invested: $30,000
Sale price: $184,000

This was my first Fix and Flip property I did in Volusia after this one I've done 5 more, but I remember the feeling of excitement when I closed.

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

The numbers looked good and it was a sure investment in an upcoming market.

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

This was a deal I found thru a wholesaler.

How did you finance this deal?

I used hard money for this one .

How did you add value to the deal?

It was a 2/2 when we bought it, so we added an additional bedroom that made it a more marketable property.

What was the outcome?

It was a successful investment, I made a 20 % Profit margin on this one

Lessons learned? Challenges?

This one got flipped during hurricane season, so it reassured the importance of property insurance no matter what. Also learned to shop for Hard money lenders and try to get the best deal.