All Forum Posts by: Carey Edmund

Sounds like a great opportunity but there are a few things to consider…

- Do you want that level of responsibility that comes with managing that many “room renters”

- You are on a corner lot with lots of parking but are you taking driveway parking or street parking? If street, are you allowed to have that many cars parking there

- Is this your first house hack? If so, consider your reasons for starting with such a large undertaking. If this was your third, or even you second, you would have an immense amount of knowledge that you won’t have on your first

- Your cash on cash sounds good but there will be a high level of ongoing maintenance when you have that many people living in that size house. Do you have the reserves to manage those expenses?

- Do you have the reserve to manage multiple vacant rooms when it happens?

Hope these questions help you get to the answer that fits your needs. Best of luck regardless of which direction you go!!

Hello Everyone!

I am making my first offer on a lead that came from the first mailers I recently sent out. I am trying to find an offer letter template. Any suggestions?

Thanks in advance!

Investment Info:

Single-family residence other investment in Houston.

Purchase price: $60,000
Cash invested: $340,000

I am closing the land portion of the project this week. It will be a new spec build that will consist of two 2-story SFR's

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

I listened to Thatch Nguyen on the BP podcast and liked that he added doors to his hold portfolio through building. This will be a build and sell but the profits will go to a build and hold project.

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

MLS with the help of an agent

How did you finance this deal?

I purchased the land cash. The build will be financed through a local bank but more to come on that piece of the project as it kicks off.

How did you add value to the deal?

I will be building two new spec homes on the property

What was the outcome?

There were a lot of challenges to getting the land purchased but we are finally clear to close.

Lessons learned? Challenges?

The seller was they type of seller that could get everything they ask for but then comes back for more. After going back and forth with the seller we came to an agreed price of $60k. Right before the docs went out for signatures the seller said he wanted all closing cost covered by me. I said no and that I would walk away before giving into a last minute move like this. He caved and agreed to sell at our original terms.

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

I worked with Caylee Loville at Equinox Realty in Houston and she was amazing. She is changing offices so reach out to me directly if you need her contact information.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $336,000
Cash invested: $110,000
Sale price: $510,000

I purchased this property as a flip. It was supposed to be a quick 10 week project but was complicated by Covid and a contractor that didn't manage his money well. After firing the contractor I was able to bring the project back on track by managing it myself. The project ended selling at the highest dollar per square the neighborhood had ever seen. I didn't make as much as I originally thought but it was still a win.

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

I work with commercial renovations at my job so it felt like a natural progression. I renovated a rental property I owned prior to selling it so it wasn't my first foray in residential renovations.

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

I found it on the MLS through my agent. There were priced perfectly so I didn't feel the need to negotiate.

How did you finance this deal?

The purchase was traditional financing through my bank with 20% down and the renovation budget was self-funded by me. I now have a private money lender so I won't be investing all my own cash into the next project.

How did you add value to the deal?

Fully renovated the project from top to bottom

- renovated both bathrooms and turned one into a master bathroom
- added LED throughout
- expanded the master bedroom
- added an island and converted the stove from electric to gas
- replaced the roof
- replaced all windows
- added a deck and new fence
- finished the basement and took the house from a 2/2 to a 5/2
- added concreted steps that lead to the front door
- full exterior paint
- added 4 egress windows
- and much more!!

What was the outcome?

It was a success... not perfect but definitely a success

Lessons learned? Challenges?

I fully vetted my contractor by checking reference yet he didn't produce. I believe he would have worked out if not for the struggles Covid-19 brought

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

I manage renovations and all physical plant projects for a company with building throughout the country. I would recommend any future investor do their best to get exposed to construction even if it's cleaning up a job site (for free or minimum wage) for a few hours each week.

Mailed 400 and so far...

8 Return to Sender

10 Calls - 6 Dead, 2 working, 1 Follow up

Not overly impressive numbers but still happy with the activity. I purchased 50 bandit signs and place 10 over the weekend. I am going to increase it to 20 next weekend. I put them out at 12 am Saturday and pulled them at 8pm Sunday. I lost three signs .

Thanks for the support everyone! So I had a few more calls that didn't really lead anywhere but did give me some great practice. I did have one call that was productive enough to make it worth going to their house. I scheduled the appointment for Wednesday (18th) and will update once it is over. The basics on the condo are as follows...

1) 3/2/2 built in 1974. 

2) Needs some updating and the seller gives it a 6 on a scale of 1 to 10 (learned this on Buy Sell Fix Flip podcast). 

3) It is fully paid off.

4) Smaller condos (2/2) in the area are selling for $55k. I am waiting for my agent friend to give me sold comps for the area.

Regardless of what happens I look at this as an AMAZING opportunity to practice walking through a home with the owner and subtly encouraging them to critique it.  

I love the BP podcast but I have learned far more real world things from the Buy Sell Fix Flip podcast by @Michael Quarles. I strongly encourage everyone to listen to it. The BP podcast pumps me up but the BSFF podcast feels like school. 

Just got over the flu so I will update where things are at with the mailer tomorrow. I don't think anyone is following the thread so I am going to use it as a journal. More to come...

@Toyin Dawodu Fantastic post!! Thank you for starting this conversation. 

I have had a few more calls and I have come to realize that some of the leads are calling you expecting an offer beyond the value of the property. I know that should have been expected but being a newbie I don't think I realized that some of the recipients of our letters just don't get it. They don't get that we are investors looking for good deals. Its been interesting to say the least. I am considering using bandit signs to generate more leads. I listen to the podcast and I have yet to hear one investor say they only use one form of marketing. I look at it as the worst thing to happen is I will get a lot of practice talking to people. I know a lot of the leads will be unqualified but I would rather make the mistakes on an unqualified lead instead of a qualified one. I plan on putting the signs out Friday evening and picking them up Sunday evening. I would love to hear feedback on this.

Got their voicemail so on to lead two.

The voicemail lead two left said she was interested in selling me her property and that it was rehab inside and out. She also said she wanted $125k for it. I called her back and got her voicemail so I decided to take a 6 minute drive to her property. This is the joy of marketing where you live. The property had a Century 21 sign in front of it so this is a dead lead. I am going to let her know that I only deal directly with sellers so I won't be able to purchase this property but to keep me in mind if she decides to sell another property in the future.