All Forum Posts by: John Williams

Property condition when purchased. 

Thanks Mary!

Investment Info:

Single-family residence fix & flip investment in Powder Springs.

Purchase price: $74,000
Cash invested: $142,000
Sale price: $199,000

Mid-century farmhouse fix and flip project.

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

Margin potential and high demand for homes under $200k

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

Local wholesaler.

How did you finance this deal?

Commercial line of credit (regional bank) and cash.

How did you add value to the deal?

Complete renovation with custom design elements.

What was the outcome?

Property went under contract within 4 days at full asking price of $199k

Lessons learned? Challenges?

Always have contractors sign a lien waiver for completed work, and seek 4 sided brick properties with existing driveways/parking features to reduce renovation costs.

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

As a licensed agent, I list and sell all of my own properties. I recommend building a lending relationship with small regional banks vs commercial lenders. Rates tend to be more competitive, and assuming your projects are successful there's a great opportunity to increase credit lines substantially over time.

Investment Info:

Single-family residence fix & flip investment in Powder Springs.

Purchase price: $74,000
Cash invested: $142,000
Sale price: $199,000

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

Margin potential and high demand for homes under $200k

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

Local wholesaler.

How did you finance this deal?

Commercial line of credit (regional bank) and cash.

How did you add value to the deal?

Complete renovation with custom design elements.

What was the outcome?

Property went under contract within 4 days at full asking price of $199k

Lessons learned? Challenges?

Always have contractors sign a lien waiver for completed work, and seek 4 sided brick properties with existing driveways/parking features to reduce renovation costs.

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

As a licensed agent, I list and sell all of my own properties. I recommend building a lending relationship with small regional banks vs commercial lenders. Rates tend to be more competitive, and assuming your projects are successful there's a great opportunity to increase credit lines substantially over time.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $74,000
Cash invested: $142,000

Renovation for retail sale of mid-century farmhouse situated on 3.5 acres.

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

Purchased through a local wholesaler.

How did you finance this deal?

Commercial line of credit and cash.

How did you add value to the deal?

Complete renovation working within the existing footprint.

What was the outcome?

Property went under contract within 4 days for $199k 

Lessons learned? Challenges?

Brick siding is preferred for future rehabs, try and purchase with existing driveway (this one had no concrete or gravel bed) and ALWAYS have contractors sign a lien waiver as work is completed.

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

As a licensed agent, I served as the listing agent. Worked with a local, regional bank in establishing a 12 month access line of credit.

Congrats on the deal! If it's the one I saw from a local wholesaler, it looks like you bought below asking. Cartersville is definitely an emerging rental investment market. My property management company added Bartow to our service area about two years ago. So far, so good! 

@Calvin Lin

I saw the same thing. We post our rental listings to Zillow by way of AppFolio, along with about 20 other sites. There are currently no additional advertising fees for AppFolio users.

Haven’t been notified of any pricing updates but would expect AF to be impacted by this as well at some point.

When that happens, I anticipate AF users to absorb those costs in some form or another. Could get pricey.

Investment Info:

Single-family residence fix & flip investment in Smyrna.

Purchase price: $150,000
Cash invested: $136,000
Sale price: $345,000

This was a 'subject to' deal, partnering with property owner. I fully funded the rehab and provided design and project management services, then (as an agent) listed the home for sale.

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

Conducted similarly structured deals in the past with successful results.

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

One of our property management clients owned the home.

How did you finance this deal?

Cash

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

As a licensed agent, I represent myself as principal in all transactions.

Hi Eddie,

I ran across your posting when searching for a similar type term sheet. Did you ever locate one? Any help would be greatly appreciated, if so. 

Thanks!

John

@Kyle Shankin

Thanks Kyle. I certainly try to keep things as simple as possible. We were fortunate to be able to execute exactly as planned and within the prescribed timeframe. As you know, few things happen by chance but by choice.