All Forum Posts by: Kara Beckmann

I have recently come across what seems to be a great commercial deal. I have not yet done a commercial project, and my own funds are currently tied up in other investments. I would feel more comfortable if I partnered with an investor who is very familiar in this space. There is a local investor who specializes in commercial properties such as this one. How should I go about presenting the deal to the investor and asking them to partner while bringing the majority of the funding to the deal? This is a total gut and there are plans in place for new construction along with permits. There is a tenant who would be willing to move in after construction, and they deal would either come with the tenant or the new buyer can find their own tenant. Any advice would be greatly appreciated!  

I have recently come across what seems to be a great commercial deal. I have not yet done a commercial project, and my own funds are currently tied up in other investments. I would feel more comfortable if I partnered with an investor who is very familiar in this space. There is a local investor who specializes in commercial properties such as this one. How should I go about presenting the deal to the investor and asking them to partner while bringing the majority of the funding to the deal? This is a total gut and there are plans in place for new construction along with permits. There is a tenant who would be willing to move in after construction, and they deal would either come with the tenant or the new buyer can find their own tenant. Any advice would be greatly appreciated!  

@Stanley Bronstein Thank you. I appreciate that. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $315,000
Cash invested: $48,194
Sale price: $425,000

This was my first fix and flip property, and a full gut. It was a probate sale in a great location. I offered $50,000 under asking and my offer was accepted! Pretty smooth renovation, especially considering this was my first deal. Sold in 10 days, and that is how my Real Estate investing began.

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

I was interested in investing in this property since it was very close to home and I was familiar with the area.

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

I had made offers on a number of properties before I came across this one on Zillow one night. We put an offer $50,000 under asking and they accepted!

How did you finance this deal?

I saved up money for a 20% down payment and took out a traditional loan on the property.

How did you add value to the deal?

I added value by completely remodeling the interior and exterior of the home.

What was the outcome?

It sold in 10 days with a very smooth close. To this day, this was one of the easiest and smoothest remodels that I've done.

Lessons learned? Challenges?

I learned so much as this was my first remodel, however I have learned more on the remodels that were not as easy as this one. My main take away on this property was how to work with contractors, to important is it to review the bid during the remodel to make sure to not add too many "change orders" and to stand your ground with contractors.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $310,000
Cash invested: $58,307
Sale price: $417,000

This was my second fix & flip property in Scottsdale, and was a full gut remodel. I decided to branch out a little more with the design and incorporated shiplap wall, herringbone concrete floors and truly embraced "modern farmhouse" trend. I removed the pool fencing which made a big impact on the back yard appeal. It sold to young first time home buyers.

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

I was interested in this deal, because this was an established neighborhood with old homes that were in desperate need of an update. It was close to home, and I was familiar with the area.

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

I found this deal on the MLS and actually had my agent put in a low ball offer sight unseen... and they accepted! I then went to see the property and my agent didn't think I would like they layout once we were inside, however I still saw the potential.

How did you finance this deal?

I financed this deal with a traditional mortgage knowing that I had to hold it for at least 4 months before selling.

How did you add value to the deal?

I added value to the deal by completing a full interior and exterior remodel. Not a detail was missed. I removed the arch in the front of the house that really dating it, new exterior paint and a new roof. Inside of the home, I replaced all flooring, baseboards, doors, trim and cabinetry. Added additional can lights and ceiling fans in the majority of the rooms. Raised the entire soffit above the kitchen, adjusted the layout and finished with new hardware, tile backsplash & Quartz countertops.

What was the outcome?

The house sold pretty quickly - approximately 2 weeks on the market. The buyers did request a $5,000 closing credit to put towards new furniture that I agreed to, but probably would not do again.

Lessons learned? Challenges?

My contractor did not tell me that I had to replace the shower rough in valves when replacing shower trim kits. I provided the trim kit, they put it on and retiled the entire shower. The day that I had the photographer scheduled to take photos, they told me the master shower was leaking due to the old rough in valve. They had to cut the drywall to access the old valve and charged me $300! The new valve would have cost me $30. I now ALWAYS replace the rough in valves.

I am in the same position. I am trying to re-finance my rental property that has gone up significantly in value, however I have not had my business for 2 full years. My lender is suggesting that I create a trust and then we use trust income to qualify for the refinance. Has any one heard of this strategy?

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $315,000
Cash invested: $48,194
Sale price: $425,000

This was my first fix and flip property, and a full gut job. It was a probate sale in a great location. I offered $50,000 under asking and my offer was accepted! Pretty smooth renovation, especially considering this was my first deal. Sold in 10 days, and that is how my Real Estate investing began.

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

I was familiar with this location, and it was close to home. That was important to me for my first deal. I would stop by daily to check on the progress on my way to my full time "day job".

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

I found this deal on the Zillow. I sent it to my agent and we decided to make a low ball offer which was $50,000 under asking. I once heard an investor say, "If you aren't embarrassed by your offer, then it's not low enough."

How did you finance this deal?

I took out my first traditional loan on this property which I was able to qualify for since I was still working a full time job at the time.

How did you add value to the deal?

I added value to the deal by updating everything - new flooring throughout, new paint, baseboards, lighting and plumbing fixtures, garage door. The house had beautiful curb appeal afterwards, and I have noticed that goes a long way!

What was the outcome?

This house sold in 10 days, and I made in profit what would take me 8 months to make working at my day job. I thought, wow I have to figure out how I can do this full time!

Lessons learned? Challenges?

This deal went pretty smooth. I feel lucky because to this day, no deal has gone as smooth as my first. The biggest lesson that I learned was to not be afraid to put in a low ball offer because you never know what someone is willing to accept!