All Forum Posts by: Jonathan Davis

I am a fairly new investor as well, and in 2021 my wife and I flipped one house sold our personal home and bought 3 rental properties, we were really nervous about taxes for this year. Our realtor invited us to a class at our local Keller Williams office to hear a CPA make a short 1 hour presentation on what agents and investors need to know about taxes. I was blown away! I made an appointment with him and he reviewed our 2020 returns and plugged in some numbers to see where we might end up this year and I was pleasantly surprised. More importantly, I didn't have to ask him many questions - he knew all of the questions to ask and his passion for helping his clients was obvious. Furthermore, he was an investor himself.

So, if I were you I would talk to other investors at a local meet up or ask your realtor if they represent or know investors that use a particular CPA in your area. From there use someone who is passionate about helping their clients grow their tax free wealth.

Hope this helps a little. Best of luck to you!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $135,000
Cash invested: $30,000
Sale price: $215,000

What About That One?
While driving for dollars I explained to my wife that people aren't doing for sale by owner any more and at that exact moment we passed a "janky" sign in someone's yard and she said "what about that one?" Unbelievable!! I called and the rest is history.

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

Taking the first step in escaping the "rat race" by building capital for future buy and holds.

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

Driving for dollars, the seller had a generic sign in the yard and I called him. He had been jerked around by a couple of different wholesalers, so he was ready to sell. I asked what it would take to buy the house. He gave a fair price and I put it under contract that evening.

How did you finance this deal?

100% loan with local bank. Interest only for 1 year.

How did you add value to the deal?

Rehabbed the entire inside and made minor improvements to the outside. This was previously a rental for 5 years, so it needed a lot of cosmetic work.

What was the outcome?

It took a few weeks to close as "buyer" due to Covid. I closed at the end of August, had it rehabbed and under contract at the end of November - I just closed at the end of January as "seller".

Lessons learned? Challenges?

I had a difficult time finding a contractor that could complete the work in the time frame I wanted. I ended up doing much of the work myself and I do not want to do that again. The challenge was finding balance in my family life and completing a rehab like this one. I didn't have a backup contractor, but I will in the future.

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

I worked with Kevin and Alli Clark with Keller Williams. They were fantastic! They provided excellent input on what to rehab and what to leave alone; their advice and negotiation experience helped me attain the profit I wanted. I would recommend them to anyone looking for top-notch, responsive agents in the Memphis area.

@Michael Kinsella

That is helpful, thank you.

@Timothy Lewis

Thank you for the referral! I will contact him.

@Joe Aiola

Thanks Joe! I think posting here and getting a referral from fellow investors would be better than using google.

@Eric Johnson

Thanks for the information. Any particular lender you’d recommend?

Hi BP Nation,

I am in Memphis, TN and I just completed a successful flip. I am now putting offers in on properties that I plan to BRRRR.

My challenge is this - it usually takes me about 30 days to close through my bank. I recently lost on an opportunity because another investor could close more quickly than I could.

I have a great relationship with my bank, but I think adding a hard money lender to my “toolbox” would be helpful.

Any referrals or recommendations would be appreciated.

Thanks!

Jonathan