All Forum Posts by: Kristopher Kyzar

@Ian Turner I wound up doing a COVID withdrawal of my TSP, and bought 3 rentals with it.

@Patti Robertson my cash invested included closing costs for purchase and the $23K rehab costs.  It was HM loan, and the appraisal they got prior to closing came in at $170K, so they required me to escrow $11K of my repair costs at closing.  They also only covered 90% of the purchase price, and required 3 months of interest up front.

Investment Info:

Single-family residence fix & flip investment in Portsmouth.

Purchase price: $127,000
Cash invested: $53,000
Sale price: $199,900

Contributors:
Taylor Hudgins

Bought this one directly from a motivated seller through my lead generation campaign.

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

Helping out a distressed seller while making a nice profit.

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

Seller found me through my Facebook ad campaign. Originally I was going to wholesale it, but wound up buying it myself.

How did you finance this deal?

Hard Money and personal capital.

How did you add value to the deal?

Refinished floors, new countertops, refinished the siding (aluminum).

What was the outcome?

Under contract in the first week thanks to an outstanding agent.

Lessons learned? Challenges?

FHA 90 day rule sucks. Might be worthwhile to get an elevation certificate in advance (this further delayed closing the sale).

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

Taylor is fantastic! She’s gotten two of my flips to the finish line super fast.

@Dave Spooner net accounting for CAPEX, Vacancy, Repairs and Management.

Investment Info:

Condo buy & hold investment in North Charleston.

Purchase price: $69,000
Cash invested: $10,000

Contributors:
Russ Scheider

Purchased through a wholesaler I work with in the area. Local Hard Money financing. No repairs. Existing tenant.

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

With no up front repairs required and an existing tenant, this one cash flows immediately.

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

Email from Russ Scheider. He was marketing it for another wholesaler.

How did you finance this deal?

Local Hard Money lender.

How did you add value to the deal?

None required.

What was the outcome?

Great rental with immediate cash flow.

Lessons learned? Challenges?

Networking pays off. I found the lender and the insurance company because I asked Russ if he knew anyone.

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

Ian Smith again walked the property for me and handled many of the on-the-ground things I needed. He's a superstar.

@Thomas Rutkowski I personally prefer my guaranteed 4% couple with my ability to lend at 12% to grow it faster. 

You should all read the book "What Would the Rockefellers Do?"

@Tim Foster I've recently been looking into IBC, and I came across a video posted by Bill Allen from 7 Figure Flipping.  He had Tom Laune on talking about just this.  Tom is able to talk you through the process, and is willing to do it with no obligation.  He'll also send you a book to read.  @Thomas Rutkowski IULs are definitely a way to go, but there's more volatility there.  Tom Laune is able to set up a policy that allows you to borrow against the policy cash value while still accruing dividends, allowing your cash value to grow even when you borrow.  Also with Whole Life, there's zero volatility.  I would recommend using a company like Penn Mutual who's been around since 1847.  They have a 30 day seasoning, after which you can borrow against up to 90% of the cash value.  I would check it out.  Stress Free Planning Website

@Dawn Manigault @Russ Scheider is an active wholesaler in the area.  He's a great resource.

Investment Info:

Single-family residence fix & flip investment in Portsmouth.

Purchase price: $100,000
Cash invested: $30,000

Contributors:
Jonathan New

Joint venture property purchased as a flip. Decided to sell via lease-option. House was being rehabbed when we bought it. We finished the process, and listed it for sale. After a while without significant offers, we decided to list it as owner financed.

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

The ability to work with a more experienced investor while on sea duty.

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

JV partner found and negotiated the deal.

How did you finance this deal?

Hard Money.

How did you add value to the deal?

Finished the renovations.

What was the outcome?

Lease-Option buyer.

Lessons learned? Challenges?

Always have multiple exit strategies.

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

Claudio Valdivia is fantastic!