All Forum Posts by: Patrick Knapp

@Benjamin Haraway

Hard money has its place in real estate.

Like many things it has its good and bads. If you don't have a good deal hard can be dangerous, but if you have an amazing deal with tons of equity hard lending can be helpful to close a deal fast.

I currently have two properties I acquired that are currently undergoing renovations (I'm a licensed General contractor). I specialize in flipping homes, I usually invest in homes around Fayetteville NC where I moved away from. Raleigh has become one of the best and hottest markets in the US right now so it's a great time to sell.

I'd like to take you on this journey with me to talk the numbers, how I found the deal, what went wrong, did I stay within my estimated budget and what the end result will be.

Attached below is the link to see the 3D imaging of the home.

https://my.matterport.com/show/?m=eCbBcwVJjqS

So first off many probably are wondering "Patrick are you rolling in the dough and you bought it out right, or did you use leverage?"

With this deal and like many I used hard money lending. I find it to work well with my investments being I plan to have enough meat on the bone to not stress about losing 10k in profits. This allows me to focus my funding on more than one deal at a time.

Deal one

Purchase price is 235k

Rehab budget originally was set for about 20k

ARV/Comps show I should with the market today be able to get 330k when flipped correctly.

Deal two:

Purchase price 200k

Rehab budget 25k

ARV/comps $299k

I have currently started already on deal one and writing for owner to move out"lease back" on deal 2.

While waiting for the renter to move out on deal one, we focused on painting the brick and get the landscaping in order. Boy did I really **** my self over on the landscaping budget. All I could think was how I needed to be just as nice as the next door house, which was sold by a homeowner who way over did it. The issue I have is that it sold 6 months prior to me starting work and sold for 281k which is 50k less. The market has changed quite a bit since December as we all know. So I went 5k over budget "rookie move".

We are now in the phase of tear out and prep. Do ill keep you posted!

@Jason E. Smith I'm in Raleigh NC and I would be down to do a meet up!

@Peter K.

The market it quite competitive right now with many people leaving blue states such as California and New York. This flock of new people moving is really gonna make it even worse.

I've learned about corporate housing from a niche Property Manager who says she can get three times aver rent. It does require all furniture in the home like AirBnB but seems alot better.

I specialize in flips here in Raleigh and owning a General contracting company does make it easier, but it's still hard to meet the 1% rule with lowering cost in repairs.

@Paul Johnson my bad I didn't read it correctly, ya dude if your breaking the rules he's in the right. He pays to live there in that community

@Paul Johnson my first step would be to have a lawyer send a letter that you will be suing him. If he doesn't stfu, or you can knock on his door and have a man to convertion asking why he is acting that way.

Make sure you confirm with a lawyer you are correct or you might look like a fool if your wrong lol

I'm a investor and licensed GC in Fayetteville. I do 3D imaging of properties for out of state investors 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $58,000
Cash invested: $35,000
Sale price: $142,000

This home sold for more than we even thought it would!
We put a new deck, fence, roof, quartz countertops, vanities, flooring, paint and more.

Before 3D
https://my.matterport.com/show/?m=Wz2k1jfn3kg

After 3D
https://my.matterport.com/show/?m=Te1BAm1YkTR

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

It was right next door to a house I was flipping

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

Skip trace, owner made fair offer

How did you finance this deal?

Hard money

How did you add value to the deal?

Being a licensed General contractor I was able to do it at my costs and max profit yet add nice finishes like quartz

What was the outcome?

Sold in 2 months from start to finish

Lessons learned? Challenges?

Even as a GC you can be screwed by subs. Make sure you have good time lines with a little wiggle room

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

Longhorn investments llc

@Mark Calivas I'm a licensed General contractor and investor. We charge for estimates but you get a 3D of your property and blue prints. Message me.

If your market is like Raleigh, NC or any city in the US it doesn't matter at this time because of how fast everything sells. I suggest your fourth revision if it saves you cash.