All Forum Posts by: Kristopher Kyzar

Investment Info:

Single-family residence buy & hold investment in Carrollton.

Purchase price: $52,500
Cash invested: $13,000

Got this gem through my lead generation campaign. Tired landlord offloading his portfolio. Initially thought I lost it because he got a higher offer, but followed up about a month later to find out he didn't sell. Negotiated from $60,000 to $52,500. Property is in good shape with paying tenant. Great cashflow.

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

This house is in great condition with a tenant in place already. Purchase price makes it cash flow quite well from day one.

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

Contacted by the seller from my lead generation campaign. Initially thought I lost the deal because he had a higher offer. I followed up about a month later to see how it was going, and he never closed. I offered again, and he was happy to accept.

How did you finance this deal?

Commercial loan from local bank. 90% LTC at 3.75%.

How did you add value to the deal?

Embraced the tenant to let them know I'll work to ensure they're taken care of. Got them from a month-to-month on a 1 year lease at the same rate they were already paying. The low cost of this one makes the cash flow fantastic.

What was the outcome?

Great rental unit added to my portfolio!

Lessons learned? Challenges?

Always follow up. No isn't always no when it comes to Real Estate.

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

Jenny L. Colon, P.C. is a fantastic closing agent. Everything is in-house, making for smooth transactions.

Investment Info:

Townhouse buy & hold investment in Goose Creek.

Purchase price: $69,000
Cash invested: $25,000

Bought this one from a wholesaler in the Charleston area. Purchased with Hard Money, and plan on putting $11,000 in rehab initially. It has an active tenant, and is sub-market in rent by about $250-300. The expectation is to do a further rehab once the current tenant vacates, and get it rented closer to market rent. After 6 months, I will refinance this along with my other properties in the area under a blanket mortgage to pull cash out.

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

The property was already rented, and required minor work. It is rented below market, and will cashflow from day 1. It will cashflow even better at market rent.

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

Wholesaler. Offered asking because it was such a good deal as is.

How did you finance this deal?

Hard Money

How did you add value to the deal?

Making some initial improvements with more planned on tenant vacating.

What was the outcome?

Great cashflowing property. Looking forward to when I can further improve.

Lessons learned? Challenges?

Remote closings. Not all closing agents are well versed in how to do them.

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

My agent Ian Smith from the Topher Kauffman Team. They were just named the #1 sales team in the area.

@Joshua Lira Many of the bigger hard money lenders will finance a portion of purchase and rehab, depends on the lender.  I've worked with several, and these are the breakdowns I typically see:

100% purchase and rehab up to 65% of ARV

90% purchase and 100% rehab up to 70% ARV

90% purchase and rehab up to 70% ARV

I've also used private money to fund the closing short term as I was waiting for another deal to sell. (this is Gap Funding)  You could also use a Gap loan from a private lender to fund the rehab.  Gap funding has higher interest rates, but it's a smaller amount, so it's not a deal breaker usually.

Another option is using a personal loan from either a bank, or a lender like SoFi.

@Craig Dieterich sounds like a great deal.  Where'd you find this?

@Karl Dela Cruz I would definitely refinish.  Maybe go a slightly darker stain to mask imperfections.  Refinished hardwoods often times look better than brand new. Although, @Mark F. makes a very good point.  If you plan to use it as a rental, laying LVP over top of the hardwood is a good plan.

@Kishun Barker I would say as long as you plan to do a cash-out refinance shortly after closing, go for it.  Velocity of money is a huge deal.  The ability to purchase quickly for cash, and within a month or two, cash out would be phenomenal.  Recycle that capital as many times as possible.

I got a 4/1.5 house under contract for $127,000 based on it needing about $20,000 worth of rehab, and an ARV of $205,000. I never verified the square footage because what I saw made sense. The owner said it was 1800 sf. The tax assessor had it at 1432 sf. Based on the addition of a large kitchen, I made the assumption that the size was correct. This size is what my ARV was based on. The HM lender did an appraisal, and never told me the appraisal came up short. The HM appraisal was $170,000. I only found out because I had to bring an extra $11,000 to closing above what I anticipated. The actual measured size was 1552 sf. OUCH! Luckily, the market is on an upswing, so I was able to list at $199,900. Accepted a full price offer. Here's hoping the new appraisal supports!

Investment Info:

Single-family residence wholesale investment in Norfolk.

Purchase price: $100,000
Sale price: $110,000

Contributors:
Claudio Valdivia

First Wholesale deal completed.

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

Decided to start marketing for my own properties in August. Averaging 20+ leads per month. This is actually the third deal closed from those leads. I referred one, and bought one.

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

Facebook marketing for motivated sellers.

How did you finance this deal?

No financing

How did you add value to the deal?

No value add

What was the outcome?

First successful wholesale deal.

Lessons learned? Challenges?

I was about to pass on this because the numbers didn't work for me. I decided to run it past Claudio, and he found a buyer in a matter of days. Networking is awesome!

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

Investor friendly agent found end buyer in a few days. Claudio rocks!!

@Darrin Carey  You're not the first to recommend them.  I think we have a winner.

I’m working on a deal in Huber Heights, OH, a suburb of Dayton. I’m in search of a good closing attorney because I’m not in that area. Any recommendations?