All Forum Posts by: David Ounanian

Investment Info:

Single-family residence buy & hold investment in St. Louis.

Purchase price: $61,700
Cash invested: $6,000

After failing miserably on my first deal and losing thousands of dollars, my second deal came relatively easy and was a quick win!

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

I get really excited about any deal that I can BRRRR and pull most of my money back out with a refinance. It makes it a no brainier to invest in the deal and add to my portfolio since it takes up very little if any of my working capital.

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

I found this deal on the MLS. This was a Freddie Mac foreclosure. They even attempted to rehab this home but the finishes on it were done rather sloppy. They came out on the market overpriced initially and I saw it when the list price was dropped to $59,900. At that point multiple investors were interested in it and I had to win a highest and best multiple offer situation. I was able to get the listing agent to help advise me on what offer price would win the deal.

How did you finance this deal?

I used a local commercial bank to finance most of the deal 80% of the purchase price and 100% of the rehab costs. I used a HELOC to come up with the 20% down I needed. After the rehab was complete and the property was rented (about 60 days after purchase) I refinanced with the same commercial bank. The appraisal came back at $99,000 and I was able to pull all of my money back out and purchase another property with the same bank.

How did you add value to the deal?

I hired a contractor to do a really light rehab to the home. Deep cleaned the house. Replaced old light fixtures and door hardware. New toilets. New bathroom hardware and mirrors. Re-grouted kitchen floors.
Painted the basement and repaired a leaking crack and some damaged drywall. Power washed the house, cleaned the gutters, cleaned up the yard.

What was the outcome?

The rehab was really easy and was completed in about 30 days. I listed it for rent on Zillow and it had a ton of interest and rented really quick. I had a good renter in there within 30 days.

Lessons learned? Challenges?

I learned that great deals are out there and even on the MLS. I needed this one after getting beat up on my first deal. This gave me a lot of confidence and momentum to keep building my rental portfolio in pursuit of freedom from my corporate job.

My Agent Investor Mastermind AUGUST Edition "HOW TO FIND FUNDING FOR YOUR DEALS"

My Agent Investor Mastermind is a monthly meetup open to any and all investors. Whether you are just getting started or a seasoned investor, this meetup can provide value to all.

This group is all about helping each other and subscribing to the abundance mindset.

Each meeting will have a very loose agenda as follows:

Round table introductions (15 minutes)
Name / Occupation
Share your biggest WIN of the last month
Share your biggest challenge or goal for the next month
Quick tip (15 minutes)
Open networking (30 minutes)

The meetings will be hosted online (link below) but please RSVP so that we know who will be attending.

https://us02web.zoom.us/j/83146536167

https://www.myagentinvestor.co...

Yes I've put some offers on duplexes in St. Ann and looking to purchase there if an opportunity arises to BRRRR.

 Hi Kevin great question!  I have an MBA and what I learned on my first deal was certainly worth more!  Experience is a great teacher.

 Hi Kamil, this deal was in St. Ann.  To find my first contractor it was also a challenge.  I called 12 of them on this house.  6 met with me for bids but only 3 got back to me afterwards.  So it was a numbers game to find a contractor that worked out.

 Thanks Jeffry!  Yes experience is a great teacher!

Thanks for the feedback Naomasa!

Thanks Ali!  Yes get help from professionals but more importantly get help from someone you trust!

 Thanks Laretta and congratulations on your first investment!  I learned from the experience of so many others on BP and now trying to share what I can now too!  Great book you are reading Laretta - if you need help with building out your team let me know.

Thanks Alex! Right now working on a flip and a couple more BRRRR rental properties