All Forum Posts by: David Ounanian

 

I used a local commercial bank to finance the purchase and rehab of this property. They financed 80% of the purchase price and 100% of the rehab. I used a HELOC to cover the 20% down payment and effectively used $0 out of pocket funds to do this deal.

Investment Info:

Single-family residence buy & hold investment in Florissant.

Purchase price: $69,000
Cash invested: $30,000

This is a single family home in St. Louis (Florissant area) that is 4 bedrooms 2.5 bathrooms and 1800sqft. This was my second successful BRRRR deal and it consistently cash flows over $300/mo after all expenses.

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

I was interested in this type of deal because of the potential for adding value and building up equity from a renovation.

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

I found this deal through another real estate agent. The owners were contemplating listing it but didn't want to go through the hassle of cleaning it out or making any repairs to the house. So I made a cash offer (read not contingent on financing) and beat out another investor to win the deal.

How did you finance this deal?

Although my offer was not contingent on financing (cash offer to the seller), I used a local commercial bank to finance this deal. They lended 80% of the purchase price, 100% of the rehab costs and did a cashout refinance at 70% of the new appraised value 4 months later. To come up with the 20% down initially I used a HELOC. I effectively used no cash out of my own pocket to do this deal.

How did you add value to the deal?

I added value to the deal by doing a mostly cosmetic renovation. New flooring throughout, new bathrooms, new kitchen, new paint, minor landscaping, fixed some minor plumbing and electrical issues.

What was the outcome?

The outcome was awesome! After renovating the appraisal came back at $150,000, which means I had close to $50k in equity in the property. I decided to refinance at 70% LTV and hold on to this property as a rental. My mortgage payment is $700/mo and I have a section 8 tenant paying $1400/mo in rent.

Lessons learned? Challenges?

A big lesson I learned on this one was to take care of your referral partners. The agent that gave me this lead assumed that I would rehab it and list it with her (as I had done previously with a fix and flip). Unfortunately when I decided to hold onto it as a rental it didn't occur to me that she wouldn't be compensated at all. I didn't get any more leads from this agent for almost 2 years. I have since made amends and promised to take care of her on all future deals.

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

My lender at Midwest BankCentre was fantastic and really easy to work with.

 Hi Grant I host a virtual meetup every month.  This month we are talking about How To Find Funding.  Feel free to join us or catch the replay on my Facebook page.

https://www.biggerpockets.com/forums/521/topics/857552-my-agent-investor-mastermind-how-to-find-funding-for-your-deals

 Yes its on!

Investment Info:

Single-family residence fix & flip investment in St. Louis.

Purchase price: $82,000
Cash invested: $23,000
Sale price: $142,000

This was my first profitable fix and flip in St. Louis. It was an easy cosmetic flip that didn't need a lot of major work done.

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

I was interested in doing this deal because of the low amount of risk involved. It was a lower price point and it didn't need a big rehab.

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

I found this deal through a real estate agent. This was an off market listing (pre-mls). I negotiated the price with the agent and had to beat out a few other offers from other investors.

How did you finance this deal?

I used a local commercial bank to finance the purchase and rehab of this property. They financed 80% of the purchase price and 100% of the rehab. I used a HELOC to cover the 20% down payment and effectively used $0 out of pocket funds to do this deal.

How did you add value to the deal?

I updated the kitchen, bathrooms and did new paint and flooring throughout the house.

What was the outcome?

The outcome was very successful. It sold the first weekend on the market and all parties were happy!

Lessons learned? Challenges?

One lesson I learned was how much better a home looks with staging. We spent about $1800 staging the home and it made the home look so much more inviting. I continue to stage any property I flip.

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

I'd highly recommend my lender at Midwest BankCentre and happy to make an introduction to anyone who needs one.

 Thanks Argi!

 Thanks Laretta!

 Thanks Caleb!  Yes persistence is key!

 Thanks David!  Hope you are doing well!

Thanks Kevin! Congratulations to you too! House hacking is the best way to get started in my opinion. For rentals I invest in mostly B and C areas of St. Louis. There are too many areas to list out but you can easily spot them by price points. The ARV on these tend to be $60-180k for single family for multifamily its slightly higher depending on the number of units. We can setup an MLS search for you if you're interested.