All Forum Posts by: Erik Stewart

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $128,000
Cash invested: $50,000
Sale price: $234,900

Fix and flip on a SFR. Pretty straight forward flip! I went over budget a little, but was also able to increase the listing price by the same amount, so my net was approx the same. Fun project and great to sell to a veteran!

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

I wanted to use flip proceeds to ramp up marketing for more BRRRR deals or hire my first employee, I ended up doing both!

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

They found me on Facebook, negotiation was a walk through and an offer of the most I could comfortably pay.

How did you finance this deal?

Bank financing for 80% of the purchase and rehab, I funded the rest.

How did you add value to the deal?

Renovation

What was the outcome?

Full asking price offer and got to provide a nice home to a Vet!

Lessons learned? Challenges?

I learned about boiler heating systems and to double check the house after contractors are working for the day, breakers that control the furnace sometimes dont get flipped back on, in the middle of a 20 below winter day :)

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

On the sale side, I worked with a great realtor who represented the buyer. She was a great communicator, savvy agent and pleasant personality.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $165,000
Cash invested: $35,000

Great 1990s 2 level home. 4 bed 2 full bath home in a great area of Fargo. It mostly needed cosmetic repairs and a new central air unit. Rehab took 3 months and got a great tenant and potential buyer living in the property.

Ffinanced by the seller, but I put my own funds into renovating it. So I am into it for 35k, and get ~300 cashflow monthly. So essentially getting a 10% Cash on cash ROI until I sell where I will realize a modest profit. The seller was amazing and great to work with!

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

Creative financing and got to help the seller, who was a super nice guy!

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

This was a referal from a friend and I didn't really negotiate, I approached it with the intention to purely help the seller, in what ever form that looked like. I helped them understand clearly, all their options, even the ones that didn't involve me.

How did you finance this deal?

Seller financed full purchase price, I funded rehab. 1 year balloon payment

How did you add value to the deal?

By completing renovations and placing a great tenant and potential buyer.

What was the outcome?

Still rented and waiting for this summer where they decide if they want to buy or if I sell on the open market.

Lessons learned? Challenges?

I learned a lot about meeting the wants/needs/expectations of the seller and presenting viable solutions in a clear and concise way.

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

No

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $165,000
Cash invested: $35,000

Great 1990s 2 level home. 4 bed 2 full bath home in a great area of Fargo. It mostly needed cosmetic repairs and a new central air unit. Rehab took 3 months and got a great tenant and potential buyer living in the property.

This was financed by the seller, but I put my own funds into renovating it. So I am into it for 35k, and get ~300 cashflow monthly. So essentially getting a 10% Cash on cash ROI until I sell where I will realize a modest profit. The seller was amazing and great to work with!

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

Creative financing and got to help the seller, who was a super nice guy!

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

This was a referal from a friend and I didn't really negotiate, I approached it with the intention to purely help the seller, in what ever form that looked like. I helped them understand clearly, all their options, even the ones that didn't involve me.

How did you finance this deal?

Seller financed full purchase price, I funded rehab. 1 year balloon payment

How did you add value to the deal?

By completing renovations and placing a great tenant and potential buyer.

What was the outcome?

Still rented and waiting for this summer where they decide if they want to buy or if I sell on the open market.

Lessons learned? Challenges?

I learned a lot about meeting the wants/needs/expectations of the seller and presenting viable solutions in a clear and concise way.

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

No

Nice work! Was this an off-market deal? Also curious to know what the current rent is at compared to where it should be. Do you pay for utilities or HOA? Could this be an AirBNB at some point?

This is amazing! Congrats, I know you will do very well with this one! Get that AirBNB listing live before the summer for sure, but hopefully you can pay your entire mortgage payment and some utilities with the income from the AirBNB! I am thinking about buying something out in Bozeman as well, also for vacation rental, VRBO / AirBNB. I like the houses that are outside the bozeman zoning constraints and have 4+ bedrooms with a ADU on the property. Those seem like the best grossing properties. Keep me posted on how your new property progresses. PS I am in Fargo, ND and have 7 rentals and have done 6 flips! Cheers

I'm reading the book Emerging Real Estate Markets by David Lindahl, and thought I would ask the group: who has invested at the bottom of an upward market trend, intentionally, and had massive success with this strategy? Please give examples of dates and dollar amounts! Please also include the foresight needed and the legwork done that led to you to believe strongly that the market was turnaround that you were willing to invest in it. Thanks for visiting!!

@Jacob Bohrer

This story is so great and perfectly captures the spirit of this thread. It reminds me of the story Brandon tells about how their live-in flip paid for their dream wedding! When you realize what's possible in real estate, that's the moment you get hooked and never want to go back!

Keep up the great work and I'm looking forward to seeing more success in your future!!

Thanks!

@David Pere

Thanks for your post and thanks for all the content you put up on instagram! I love following your channel!

Hopefully this thread helps to show average people like me that there is a way to build the life they want, and they can do it using real. There is no one size fits all method, there's no real wrong answers, as long as one is committed to doing the things necessary to improve their life, I believe real estate can supplement any goal or lifestyle.

Thanks again for posting and I'll definitely keep myself updated on your Instagram because it's super motivating and informational!

@Whitney Hutten

Thanks for your post and podcast episode on BP! Every house I buy from now on, I'm going to make sure there's no possibility of a bus coming through the roof LOL.

I love your story about how you got started in real estate with that live in flip. I actually know a couple of investors who only do live in flips and it's a great strategy! It can be very attainable for a new investor. The financing will be the best for owner occupied houses, insurance and taxes would presumably be lower, you can decide your own level of rehab to do when you buy, and if you live there for 2 years or more the profit when you sell will be taxed free (up to a certain point). And if one is handy, they can save a lot of money by not hiring everything out to contractors. But drywall, that is definitely something to hire out, especially if they are like us and mess it up LOL.

Thanks again for your story and I hope it helps someone who might think it's a daunting task to get into their first deal!

@Joe Splitrock

Thanks for posting this! The spirit of my post was never to discount anyone or any profession. You are 100% right that there are tons of success stories of people who have done extremely well in life with their career after having started with nothing, or less than nothing! I have only respect for those individuals. Seeing how hard my brother and his friend group worked to become engineers (electrical), I would say it's probably more difficult than investing in real estate. My main goal with this post, and maybe it's not super clear but I think it is, was too give a voice to those who use real estate as the main vehicle to change their circumstances and work towards a life of their dreams! Those were the stories that I was interested in hearing, that's all. And hopefully in the sharing of these stories, we can help someone who can relate to being in tough circumstances in life. Even if they take a real estate success story and use it as motivation to go become a doctor or lawyer, that's great!

Real estate is the best method for the average person to accumulate wealth! I have that in my original post and I see that in first sentence of your profile description! So I know we agree :)

I really appreciate your post because I'm sure you're not the only person who thought that when reading this thread. Plus, you know your bigger pockets thread is not legit until there's some contention!