All Forum Posts by: Manuel Castillo

Investment Info:

Single-family residence fix & flip investment in Augusta.

Purchase price: $128,000
Cash invested: $10,000
Sale price: $169,000

This house would've been a two week turnaround, but I was in my second semester of nursing school and couldn't give it attention at the time. It was 2-3 weeks before I hired the first crew to go in and then I had to wait another 3-4 weeks for the new crew I would hire to be able to get started.

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

I saw the listing agent had it drastically undervalued and knew I could relist on MLS immediately As-Is and probably net $10-$15k.

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

MLS, offered all cash quick close

How did you finance this deal?

Cash

How did you add value to the deal?

Complete interior/exterior paint, Flooring, pressure washed/freshly stained deck, Upgraded the bathrooms and laundry to "farmhouse style." Swapped out "boob lights" in every room for ceiling fans.

What was the outcome?

A great return!

Lessons learned? Challenges?

Hire the right crew the first time, even if they're going to cost you a couple grand more.

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

I represented myself, Manuel Castillo, as an agent.

@Joe Villeneuve How does one go about establishing a business line of credit ?

@David Lutz, @Joe Villeneuve is most likely referring to purchasing the property under "terms" meaning creative finance. Creative finance could allow someone to purchase a property that otherwise wouldn't cashflow and have great success because of the terms negotiated. An example:

Regular Purchase- $100k through a bank 5.5% interest with 30% down on 30 yr loan equals $30,000 out of pocket just to purchase with minimal $ going towards loan because it's the beginning of amortization.

Terms Purchase- $100k through seller finance with $0 down with 3% on a 30 yr loan equals $0 out of pocket to take ownership of better flow.

There's so much more to "Terms" as this is just one example.   

@Waleep Alvi You're absolutely right about everything you said regarding Augusta and neighboring Columbia County. The market is scorching here because of the jobs and school system. If you ever need anything, just let me know

@Nathan Barshinger Columbia county, more specifically, Evans GA was recently voted number 1 best city in the nation for families to live in. Houses in Evans are usually under contract day 1 on the market with multiple offers. Depending on your real estate goals, Grovetown and Hephzibah offer good schools/properties. If you're looking more for fix and flip/cashflow opportunites, Augusta is higher on the list.

If you have any further questions don't hesitate to reach out to me. I'm a realtor that lives in Evans and invests fix and flips mainly in Augusta. 

@Winn Merwin This is on King Woods drive near Pendleton King Park. It was a huge success for my first sorta flip for sure. I'm currently working on another flip in Augusta that should hit the market this coming weekend :) I was a buy and hold "investor" for several years, but am looking for a quicker turnaround on cash as the rental game held a lot of my capital. I put investor in quotes as I was such a novice that entire time and didn't know just how much I was missing out on strategies. Since then, I've educated myself with well over 200 hours of real estate investing strategy podcasts. I'd like to execute as many flips as possible these next couple years in order to build my capital to then focus on commercial investments being Strip Malls, Storage Units, or Apartment Building/Complex.

Investment Info:

Single-family residence other investment.

Sale price: $150,000

Originally bought this as a rental listed at $900/month and decided to fix it up to sell full retail.

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

This house is located in a nice up and coming area.

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

Bought directly from the owner and found through referral.

How did you add value to the deal?

Renovated it

What was the outcome?

Successfully flipped while making a huge profit

Lessons learned? Challenges?

How to set up contractor arrangements.