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All Forum Posts by: Jon Lester

Jon Lester has started 7 posts and replied 24 times.

Post: Light BRRRR with No Cash Left in the Deal

Jon LesterPosted
  • Real Estate Agent
  • New Orleans, LA
  • Posts 24
  • Votes 11

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $140,000

I purchased this duplex with cash. It had existing tenants who were under market rent and both units needed some TLC. We got one unit up to market rent with no additional out-of-pocket costs for the tenant. The other unit the tenant was ready to move out, so we helped him find a new place for him and his family, then renovated the unit and rented it out at market rent. Now it's refinanced and cash flows, and we have a strong asset that we were able to pull 100% of our initial cash out.

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

I like the neighborhood and saw this as a great opportunity to own a strong asset in it.

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

This deal was brought to me through another wholesaler.

How did you finance this deal?

We used cash for the purchase and repairs, then refinanced to pull 100% of our cash out.

How did you add value to the deal?

We worked with section 8 to increase rents in one unit, did some light renovations in that unit, and some additional renovations to the other.

What was the outcome?

Both units rented at market rent and zero dollars cash left in the deal.

Lessons learned? Challenges?

I would probably be more likely to buy vacant properties going forward, but if I find a strong deal with existing tenants, I would discuss rent increases prior to closing.

Post: Light BRRRR with No Cash Left in the Deal

Jon LesterPosted
  • Real Estate Agent
  • New Orleans, LA
  • Posts 24
  • Votes 11

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $140,000

I purchased this duplex with cash. It had existing tenants who were grossly under market rent and both units needed some TLC. We got one unit up to market rent within 3 months with no additional out-of-pocket costs for the section 8 tenant. The other unit the tenant was ready to move out, so we helped him find a new place for him and his family, then renovated the unit and rented it out at market rent. Now it's refinanced and cash flows, and we have a strong asset that we were able to pull 100% of our initial cash out.

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

I like the neighborhood and saw this as a great opportunity to own a strong asset in it.

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

This deal was brought to me through another wholesaler.

How did you finance this deal?

We used cash for the purchase and repairs, then refinanced to pull 100% of our cash out.

How did you add value to the deal?

We worked with section 8 to increase rents in one unit, did some light renovations in that unit, and some additional renovations to the other.

What was the outcome?

Both units rented at market rent and zero dollars cash left in the deal.

Lessons learned? Challenges?

I would probably be more likely to buy vacant properties going forward, but if I find a strong deal with existing tenants, I would discuss rent increases prior to closing.

Post: Fix-and-Flip Turned Bond-for-Deed

Jon LesterPosted
  • Real Estate Agent
  • New Orleans, LA
  • Posts 24
  • Votes 11

Investment Info:

Single-family residence other investment.

Purchase price: $74,500
Cash invested: $25,000
Sale price: $140,000

I bought this house to do a traditional fix-and-flip and then market slowed down hard in New Orleans. We decided to get creative and sell it on Bond for Deed with a 10% down payment and all monthly expenses covered by the buyer.

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

The sellers wanted quick cash to purchase a new condo unit in an assisted living facility and I was able to help them hit their goal and deadline.

How did you finance this deal?

Hard-money + my own cash for the purchase and repairs, then refinanced through the same hard money lender in first position.

How did you add value to the deal?

Installed HVAC, replaced flooring, windows, and some cosmetic upgrades. Painted myself to save some money.

Lessons learned? Challenges?

I learned to better price my repair budgets after having to do a few things myself to save money.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in New Orleans.

Purchase price: $250,000

I worked with a buyer that I met here on Bigger Pockets and connected her with a deal in New Orleans on a 4-plex. She's owner-occupying one unit (house hacking), and renting out the other 3. All 3 other units are government subsidized at 125% market rent, and she's able to cash-flow the deal, even at current interest rates.

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

Cash flow and appreciation.

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

Off-market channels before it hit the MLS, so we were able to make the first offer.

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

I am the agent who found and negotiated this deal.

Post: Massive Growth Opportunity in New Orleans

Jon LesterPosted
  • Real Estate Agent
  • New Orleans, LA
  • Posts 24
  • Votes 11
Quote from @Bob Stevens:
Quote from @Jon Lester:
Quote from @Bob Stevens:
Quote from @Jon Lester:
Quote from @Bob Stevens:
Quote from @Jon Lester:

Hey everybody,

I wanted to share a really great opportunity in New Orleans for some savvy investors looking to get in on some semi-fast but massive equity opportunities.  This area of New Orleans has historically been a little rough, but lots of big investment money coming in quickly and revitalizing the entire area.  This could be a really great opportunity to buy low and sell high in only a few years. 

Check out the article below for details.

https://neworleanscitybusiness.com/blog/2023/10/03/infrastru...


 I care about 4 things to get my attention.

How much needed, 

Income per year,

Secured how? 

Your relationship with the deal. Do NOT tell me your " partner" has the contract, 


Thank you 


 Check out this post and let me know if you're interested.

https://www.biggerpockets.com/forums/517/topics/1146828-cash...

 It's terrible, why would you even think about that?  It LOSES each month? You are hoping in appreciates, NOT a wise way to invest.  "

Massive Growth Opportunity in New Orleans" 

Come on this is NOT FB, 

Good luck 


 Where are you seeing losses?  It's cash-flowing $423 per month as-is, and one of the rents just got approved to increase on December 1st, 2023.


 Sorry 10000% my bad, I noticed the - next to the 423, but on bottom 423 positive. I hope it gets even better for you, 


 It's the approximation sign, but I definitely see how that could easily get overlooked as a minus sign.  No worries at all.  Thanks for the positive feedback!

Post: Massive Growth Opportunity in New Orleans

Jon LesterPosted
  • Real Estate Agent
  • New Orleans, LA
  • Posts 24
  • Votes 11
Quote from @Bob Stevens:
Quote from @Jon Lester:
Quote from @Bob Stevens:
Quote from @Jon Lester:

Hey everybody,

I wanted to share a really great opportunity in New Orleans for some savvy investors looking to get in on some semi-fast but massive equity opportunities.  This area of New Orleans has historically been a little rough, but lots of big investment money coming in quickly and revitalizing the entire area.  This could be a really great opportunity to buy low and sell high in only a few years. 

Check out the article below for details.

https://neworleanscitybusiness.com/blog/2023/10/03/infrastru...


 I care about 4 things to get my attention.

How much needed, 

Income per year,

Secured how? 

Your relationship with the deal. Do NOT tell me your " partner" has the contract, 


Thank you 


 Check out this post and let me know if you're interested.

https://www.biggerpockets.com/forums/517/topics/1146828-cash...

 It's terrible, why would you even think about that?  It LOSES each month? You are hoping in appreciates, NOT a wise way to invest.  "

Massive Growth Opportunity in New Orleans" 

Come on this is NOT FB, 

Good luck 


 Where are you seeing losses?  It's cash-flowing $423 per month as-is, and one of the rents just got approved to increase on December 1st, 2023.

Post: Massive Growth Opportunity in New Orleans

Jon LesterPosted
  • Real Estate Agent
  • New Orleans, LA
  • Posts 24
  • Votes 11
Quote from @Bob Stevens:
Quote from @Jon Lester:

Hey everybody,

I wanted to share a really great opportunity in New Orleans for some savvy investors looking to get in on some semi-fast but massive equity opportunities.  This area of New Orleans has historically been a little rough, but lots of big investment money coming in quickly and revitalizing the entire area.  This could be a really great opportunity to buy low and sell high in only a few years. 

Check out the article below for details.

https://neworleanscitybusiness.com/blog/2023/10/03/infrastru...


 I care about 4 things to get my attention.

How much needed, 

Income per year,

Secured how? 

Your relationship with the deal. Do NOT tell me your " partner" has the contract, 


Thank you 


 Check out this post and let me know if you're interested.

https://www.biggerpockets.com/forums/517/topics/1146828-cash...

Post: Looking for General Contractor recommendations in New Orleans (Orleans Parish)

Jon LesterPosted
  • Real Estate Agent
  • New Orleans, LA
  • Posts 24
  • Votes 11

I'm part of a group with GCs.  Shoot me a text when you get a minute.  504.380.2686

Thanks

Post: Cashflowing 4-Plex in New Orleans - Fully Rented

Jon LesterPosted
  • Real Estate Agent
  • New Orleans, LA
  • Posts 24
  • Votes 11

Hi all,

I have an off-market deal in New Orleans that is currently cash-flowing ~$423 per month.  It's a 4-plex that's fully occupied with 4 reliable, section 8 renters.  The property itself was renovated in 2018.  

Rent increases in New Orleans, year-over-year, so it will only continue to increase.  And when insurance prices drop in the next couple of months, your monthly returns will increase significantly.

Current monthly expenses = $5,164.89

Current rental income = $5,588.00

Cash flow = $423.11

Contact me for more details and a full breakdown of the costs.

Post: Featured Agent Reviews

Jon LesterPosted
  • Real Estate Agent
  • New Orleans, LA
  • Posts 24
  • Votes 11

I opted out.  I really love the idea of this program, but until it's executed better, it's certainly not worth the money.  Someone from BP reached out to me last week about potentially re-joining, and I told them the same thing.  The number one thing that needs to be done is better vetting.  Right now, they are charging ~$60 per lead for someone to fill out a webform, with no vetting at all.  I had so many of them that were spam, and then I had to type up a lengthy email to get credit applied back to my account.  Too much work for too little reward.

I'm hoping they overhaul it and reach back out to me.  I love BP and would love to test pilot this program 2.0