All Forum Posts by: Brenda Jean Adamson

Investment Info:

Single-family residence other investment.

Purchase price: $15,000
Cash invested: $165,000
Sale price: $290,000

new construction from the ground up

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

My parents have been doing this for years. My brother and I went in together to finance and build the house.

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

This piece of property was part of a larger parcel from a few years ago. It was just sitting there waiting to be built on.

How did you finance this deal?

We received a local bank spec loan with no money down because the lot was owned free and clear; we took out funds of about 3K from the front end to cover closing costs.

How did you add value to the deal?

I pulled the permits and called in all inspections. My brother ran the job and built the house. As a realtor, I sold the house.

What was the outcome?

SOLD!

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

Yes...just message me

@Mark Sunderhaus

Messaged you.

@Lucas Carl

There are also areas where duplexes may no longer be built. There have been many who have frowned upon duplexes due to the blight, poor management, etc.

@David Olson

Let me know when you’re in the area! Our office is on Brainerd Road and I’d be happy to meet up for coffee.

@Theresa Harris

Right. Your thoughts makes sense to me. Thanks for your input.

The house is too big for them now and it has a mother in law suite (basement type living quarters). I thought they might consider renting that room out to generate income.

@Theresa Harris

Good question! I’ve asked them this - well, sort of....

They had the home up for sale a few months ago. From what I can tell it seems they really want to tap in to the equity AND still walk away with a nice home in a different location. Thanks for the question!

What are some ways that a buyer could help a homeowner as described below?

1. Seller paid 182K cash for the home; no existing mortgage

2. Has bad credit and has been unsuccessful at getting a hard money loan

3. No steady income

4. Expecting funds in the coming months but this is not guaranteed

5. Family now wants to relocate to another part of town

6. Home may appraise for around 220K

7. Seller wants some cash out now

Thoughts?

@Nik Moushon

Good info and insight. Makes sense regarding the need for an owner rep. as it relates to the size/scope of the project.

@Aaron Cameron

I’m in Chattanooga and have banking relationships that I think might work for you. I’ll send you a message with two local portfolio lenders who are straight shooters on what they can and cannot do. They won’t waste your time.

@Michael Wayne

Sounds very similar to a deal that I’m involved with but our deal is on a larger scale (244 units).

One thing I’d consider is engaging a superintendent that represents you as the owner. He’d be the guy to attend all the weekly meetings and could keep a good grasp on things without you having the development learning curve.

I say keep moving forward & poking holes in the deal til you’re comfortable with the risk level.