All Forum Posts by: Jon Graves

@Kyle McKnett thanks for the perspective, I had the same thought on the flu.. I just got off the phone with the seller, his price went up another $7k ($14k total). I'm not sure whether or not he had legitimate offer or not but at this point it seems like he's dragging his feet and feel like he's just trying to jerk me around. I know what my max purchase price is and his well above it now. I'll definitely go in more prepared next time. HUGE learning experience even though I wasn't able to close the deal. 

Russell, we shook hands and agreed on a sales price face to face. Maybe I'm naive for trusting in his word. the property isn't even on the market, it's a friend's neighbor who I happened to him into cleaning the property out.

Thanks, Jay. Definitely a good take away is to have everything giftwrapped and ready to go. I thought I had time but it was just an iillusion, I think taking my time on due diligence before purchase agreement was a learning experience. Once I'm in a few more I'm hoping to get a better feel for the numbers so I can have a quick turn around.

Thanks, Franklyn. Sound advice, I'll see what he says tomorrow.

Hi All, 

Came to vent a bit but also to get your opinions. 

I came across a good flip opportunity in Ferndale (close to work so I can keep an eye on it). 

Quick Math:

109k Purchase price, 40k rehab, ~20k holding costs (6month worst case hold) and an APR of 210k. Looking at a profit of close to 40k if I take my time over 6 months, though any good contractor should be able to get it done in 2.

I had a contractor come in and give me the rough rehab estimate, and had a real estate buddy pull comps in the area so I know my numbers are in the ballpark.  I get through my first face to face negotiation with the owner and felt like we both came away happy so I drafted a purchase agreement and gave it to the seller last Friday who said he would look it over. He called last Sunday and tells me he is in the hospital with the flu; I happily give him a week (health comes first). Finally, I get back in touch after about a week (today) and he tells me that he's going to sell to a real estate company for 7k more. 

What did I do wrong here? Should I always come away from a negotiation with a signed purchase agreement or is this guy just slimy? I do plan to get back in touch tomorrow morning, I can still make the profit I want and would consider matching the offer from the real estate company, though I want to avoid bidding on emotions. 
 

Feeling a bit discouraged as I've been looking for opportunities to get into a flip for the past few months, I plan to keep grinding. 

Any advice is welcome. 

Hi All!

I plan to purchase a flip within the next few months. As I am just starting out in real estate (I own a duplex) I don't have the money to fund a deal in cash so I plan finance with a combination of private money ~30% and hard money ~70% or conventional depending on the property. 

My long term strategy is a buy and hold for cash flow with some flips mixed in to fund Multi Units with the goal of leaving my job within 5 years. I've been broadcasting to anyone who will listen what my plan is and have garnered significant interest from friends/acquaintances /family who want to invest with me. I want to put together a package/pitch deck to send to these potential investors.  Having the details written up will hopefully give the on the fence investors the confidence they need to move forward. 

Does anyone have a template for structuring a private money deal that they would be willing to share? 

Thanks, David! 

Steve, very similar stories! I did see the meetup at Block Brewery, I'll check my schedule and see if I can make it out there if only for the beer. 

Tyler, I found the property through a local real estate agent in Lansing, it's close to cooley law school. It sat on MLS for quite some time because it didn't have an approved rental license. I was able to get a city inspector out to the unit to give me a list of the things it needed which ultimately helped me determine whether or not it was worth pursuing. I bought it for $52500, through a conventional mortgage with 25% down, with a combination of personal savings and convincing friends and family to loan me the rest. I have about $2000 into repairs with no major surprises. All in all, hoping the property will rent for around $1600 total ($800 per unit). PITI is $620. It'll cash flow about $600 after maintenance/cap ex savings. The previous owner neglected a lot of maintenance, some electrical work, windows/doors jambs, plumbing, paint etc. I've done all the work myself with the help of a couple of the guys that loaned me money. I think the biggest take away is that in order to scale my business effectively I will need to determine which work to do myself and which to contract out.

Hey All! 

I'm an engineer by day and I really caught the real estate bug within the past year. I'm 28 and something about the corporate hamster wheel pushed the right button. I couldn't see myself working for the next 30-40 years at a desk job doing more or less the same thing while working my prime years away. I am convinced that Real Estate will allow me to pursue some of the things I've always wanted to do while also giving me the financial freedom and security of the corporate world. I've committed to a 5 year plan that will allow me to quit my job and focus solely on real estate (and other endeavors). My long term strategy is to buy and hold multifamily units for passive income and to fund those units by flipping single family homes. I am fascinated by the success stories that I read on a daily basis on BiggerPockets. I'm excited to use these stories to create a model for success that I can follow to reach my own goals.

I just purchased my first unit (A duplex in Lansing, MI) in December. The experience has been rewarding so far and I'm excited to grow and further refine my strategy as I learn and soak up knowledge from experienced real estate professionals. Happy to join this community!