All Forum Posts by: Account Closed

Investment Info:

Small multi-family (2-4 units) hard money loan investment.

Purchase price: $150,000
Cash invested: $100,000

Fourplex obtained with HML and self-fund for closing costs. Expect to complete rehab by 1st week of December. Using first of the 1/1 as 'model' for construction team to mimic on the other three. Had some delays with demo as the seller renewed to a one-year lease with remaining tenant but was able to move him out by returning his deposit and rent. Once first is complete, list it for rent on AirBnB (fully furnished).

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

Training through BP webinar as well as training with Armando Montelongo's NTLT on how to evaluate deals and construction costs.

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

Drive by in Amarillo.

How did you finance this deal?

Used Backflip as hard money lender and self-funded the closing costs.

Lessons learned? Challenges?

Use a clause within the contract to request for landlord to not renew leases during the contract period. Negotiate closing costs into the deal. Ensure HML numbers are correct and better communication to avoid closing delays.

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

Keller Williams - Santana Johnson

Yes, it was "fun" trying to do this and make sure everyone was on the same page to close. Thanks for the comment. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $265,000
Cash invested: $34,000

Duplex purchased in outskirts and new development area of La Feria, TX. So new that address is still not quite on the map but all multi-family homes are selling fast in this area for the people moving into Rio Grande Valley.

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

Greater investment opportunity to do a hybrid of LTR and STR (AirBnB) on a brand new property.

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

Found it through a former Marine friend who's retired and now is a realtor in the Rio Grande area.

How did you finance this deal?

Via a friend, also former Marine, who works with Federal Savings Bank.

Lessons learned? Challenges?

Avoid closing around holidays, ensure insurance information is being worked thoroughly to not delay closing dates, ensure builder is submitting all appropriate documents to city and state, and ensure that seller transfers utility services to avoid delays. Still have an on-going challenge with seller's agent not posting the property as "sold" which is preventing from listing as a rental.

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

Yes. Mike Hernandez with Keller Williams Realty.