All Forum Posts by: Jarrod Covey

Investment Info:

Single-family residence buy & hold investment in Austin.

Purchase price: $80,000
Cash invested: $150,000

Hoarder house sourced through a wholesaler with plans to renovate and turn into a short term rental

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

Tax benefits, equity position, cash flow

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

Wholesaler brought it to me at a networking event

How did you finance this deal?

Hard money lender

How did you add value to the deal?

This was a full rehab + re-create the floor plan

What was the outcome?

Solid equity position, a deduction, and cash flow

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $80,000
Cash invested: $125,000

Hoarder house sourced through a wholesaler with plans to renovate and turn into a short term rental

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

The equity after renovation and calculated cash flow

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

wholesaler

How did you finance this deal?

hard money

How did you add value to the deal?

Floor plan restructure and converting garage

What was the outcome?

This project is still underway

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

Tyler Smith of Elevate Real Estate

Investment Info:

Condo buy & hold investment.

Purchase price: $650,000
Cash invested: $65,000

Licensed short term rental near Rainey district in Austin, Texas

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

The fruitful market

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

Local real estate broker

How did you finance this deal?

traditional

How did you add value to the deal?

design

What was the outcome?

cash flow

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $220,000
Cash invested: $300,000

Complete remodel including 35 new piers for pier & beam foundation, framing, siding, subfloors, and complete finish out. Only item from original build is the shiplap accent wall. Learned a lot about construction, contractor management, and property management. This house is now a permitted short term rental in Austin, Texas

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

The location of the property and future growth of the city

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

I found this deal through a local wholesaler

How did you finance this deal?

Hard money

How did you add value to the deal?

Tore the existing structure down and built new

What was the outcome?

First cash flowing rental

Lessons learned? Challenges?

A lot of lessons and challenges

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

Yes

Hello everyone,

I am purchasing a wholesale deal in Marble Falls that is set to close on November 8th of this year. 

It's currently leased for $1275/mo by long term renters and this lease will be up March 2024. I'd like to keep these long term tenants because I know how are they are to come by, it is worth noting the house is an absolute wreck with food and material items everywhere.

The backyard is accessible by an alley way, and plan is to build fence dividing the 8400 sqft lot into two lots and putting an Airstream on empty lot to double the cash flow. This is still an idea because there is a lot of maintenance to keep up with on Airstreams.

With it being wholesale, I'll purchase cash with hard money lender and refinance it. 

Pending no major issues occur in the 1978 build over the next 6 months, I could flip the house then refinance or wait to rehab as it will cash flow even while in the hard money loan. 

Full flip equity if I were to put $55K into it would be ~ $110K. As-is equity is closer to ~ $50K. 

Pencils a few different ways and it's hard to decide which direction to take.

What would you do in my shoes?

R.D. Hammond Consulting & Engineering - Derek Hammond is the main guy

Hello everyone! 

I'm diving into the current shifts in the real estate market and am particularly interested in the role and insights of active contractors and/or builders. 

Does anyone have experience operating off of a JV agreement with equity share in project? Is that a horrible idea to pursue something like that?

Keen to learn from those in the know and explore potential collaborations.

1) Yes - asset based lenders do exist 2) They usually have an appraiser on staff to underwrite deals as they come in. Once that appraiser establishes a value, their max lendable amount is a certain LTV they've established internally

Hey @Ross Hambright - it's commendable that you're starting off by thoroughly gathering information and seeking insights from experienced individuals. As a person who handles properties on short, medium, and long-term basis, I can attest that all of them necessitate careful management. I would suggest that your next steps should involve discussing your plans with a lender to identify necessary financing. Once that's in order, look for a property that matches your ambitions. Most stories of successful buy & hold investors start with them pursuing short-term or mid-term rentals because of the greater cash flow then they start to collect long term rentals.

Sending you a PM, off the cuff, at least 3.5% for origination