All Forum Posts by: Michael Glaspie

I greatly appreciate that Mike.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $140,000

Originally a primary residence acquired through a VA loan. Now turned into a rental in the highly desirable Fayetteville Market.

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

I had bought this deal all wrong. I lived in it for 3 years before I wised up and realized how I could make it a deal.

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

Bought off of the MLS through a broker.

How did you finance this deal?

VA Loan

How did you add value to the deal?

It took 4 years and a refinance in order to make this a cash flowing deal.

What was the outcome?

I still have this property in my rental portfolio.

Lessons learned? Challenges?

Buy right! I bought this all wrong from the beginning. But I have learned many lessons from this one.

Investment Info:

Single-family residence buy & hold investment in Fayetteville.

Purchase price: $67,000
Cash invested: $15,000

Found a retired landlord off the market brought to me by a fellow FortuneBuilder. Original asking price was $85,000. I was able to get the property at $67,500 with completed repairs equalling over $3500 and an allowance of $1000 at closing. The kicker is the property is tenant occupied and renting for $900 a month in the best school district in the area.

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

It was an off-market deal that met my specific criteria of location, price point, and condition.

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

It was brought to me by a realtor who knew I was ready to close.

How did you finance this deal?

It was financed through a conventional loan. The negotiation of price and repairs is where I made my deal.

How did you add value to the deal?

The property was bought slightly below value but was able to have many high-cost repairs completed before closing. This resulted in immediate equity and excellent cash flow.

What was the outcome?

A solid rental in a great sub-market that is renting for $900 a month.

Lessons learned? Challenges?

Always ask! you never know what the seller might be willing to add into the deal.

Investment Info:

Single-family residence other investment in Fayetteville.

Purchase price: $1,800
Cash invested: $1,800

This beautiful is valued at $170,000. I was able to acquire this property through a subject to, or deed in lieu of. The seller was separating from the military and no equity in his home. Through thourough negotaiating and coordination I was able to secure this home for the closing costs and title transfer of only $1800. It was tenant occupied 2 weeks later for $1250 a month.

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

This was an opportunity to acquire a property with very little capital and not take on the debt.

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

Being in a military town, there are a few soldiers who enjoy the benefit of the VA loan. Allowing them to purchase a home with $0 down. Unfortunately, the military also requires soldiers to move quite often. When they are forced to move, many times they have not had the opportunity to build equity in their homes. So I capitalized on being able to provide this soldier value by relieving them of their monthly obligation and allowing them to save money on the costs associated with a sale.

How did you finance this deal?

I simply paid for the transfer of the deed and the formation of a trust.

How did you add value to the deal?

The cash flow from the property and appreciation over time is the IRR on my initial $1800.

What was the outcome?

I still currently have the property in my rental portfolio. At the end of the current lease, I will sell the home.

Lessons learned? Challenges?

There are many different ways I could have tackled this property. Sub-leasing, loan assumption and many more. This was a great opportunity to learn the systems needed to complete this transaction from start to finish.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $144,000
Cash invested: $10,000
Sale price: $189,900

I used a VA loan to acquire a foreclosure. I fixed the property up while living in it. The largest expense was the HVAC system but was able to walk away with a check of over $23,000 after closing.

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

The ability to leverage no money down approach and get hands-on experience with rehab.

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

On the MLS. Fayetteville, NC is a hotbed for VA foreclosures.

How did you finance this deal?

With a VA loan

How did you add value to the deal?

Paint interior, replace appliances, replace all fixtures and ceiling fans, detailed landscaping, replace HVAC system.

What was the outcome?

After loan payoff and credit card payment I received a net profit of over $23,000.

Lessons learned? Challenges?

Many strategies to save money and increase profits. I could have held for cash flow and retained the equity as well.

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

My partner Shelby Osborne has been instrumental in the development of the turnkey systems we can provide for our outside investors.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $144,000
Cash invested: $10,000
Sale price: $189,900

I used a VA loan to acquire a foreclosure. I fixed the property up while living in it. The largest expense was the HVAC system but was able to walk away with a check of over $23,000 after closing.

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

The ability to leverage a no money down approach and complete the repairs at my own pace gave me the ability to learn the in-home repairs at a low cost.

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

Found the deal through the MLS. The Fayetteville market is a treasure trove of VA foreclosure homes. These homes tend to be in decent condition with a fair amount of equity from the time of purchase.

How did you finance this deal?

I used a VA loan.

How did you add value to the deal?

I replaced the appliances, painted the interior, replaces all lighting fixtures and ceiling fans, demolished a secondary deck, landscaped, repainted shutters, and minor exterior vinyl siding repairs with powerwash.

What was the outcome?

Was able to pay off the loan and the credit card I used for large purchases and walked away with a check of over $23,000.

Lessons learned? Challenges?

I learned I can increase the profit margin through a variety of different techniques.

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

Since then I am now a licensed real estate agent in the Fayetteville market and have developed a team to assist investors to find homes, rehab them, and have a property management company screen and place tenants.
My partner Shelby Osborne (Five Pillars Realty) was instrumental in the development of this system.