All Forum Posts by: Collin Corrington

Investment Info:

Single-family residence wholesale investment.

Purchase price: $67,500
Sale price: $69,000

Simple wholesale deal.

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

I was hunting down properties on the foreclosure list for my partners. I thought this was going to be a killer owner finance deal and both of them shot it down.
So instead of just passing it up, I locked it up under contract and wholesaled it.
I made a quick $2,500 when they didn't want it.

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

If I remember correctly he called me off one of my mailers.

How did you finance this deal?

No financing needed. =)

How did you add value to the deal?

Finding a flipper that wanted it.

What was the outcome?

$2,500

Lessons learned? Challenges?

It was a tight deal for a flip and I knew that but there was money to be made. I had to make sure that my buyers saw the value and how the numbers would shake out.

Investment Info:

Single-family residence wholesale investment.

Purchase price: $20,098
Cash invested: $20,098
Sale price: $35,000

It was a wholesale deal essentially but I did end up closing it.

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

There was room in it. The house was really rough but we found a buyer.

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

This was found by a Realtor friend of mine and she called me.

How did you finance this deal?

Cash

How did you add value to the deal?

All I did was change the locks.

What was the outcome?

Sold it to someone that was going to flip it.

Lessons learned? Challenges?

I learned to keep my network open. The buyer on this deal came from a town I do very little marketing or networking in.

Investment Info:

Single-family residence note investment investment.

Purchase price: $15,094
Cash invested: $16,094
Sale price: $35,000

Bought this form an elderly couple that was moving to assisted living. They left pretty much everything. Paid cash for the deal. Paid $1,000 for someone to come clean and haul everything off.

Sold owner finance to another investor for $35,000 at 7.5% interest for 10 years. I'm sure he'll pay it off sooner than maturity as he is attempting to flip it.

Immediate unrealized capital gain - $18,906

Loan maturity capital gain - $33,795.12

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

The price was too good to pass up. It's about an hour from where I would normally invest but a deal is a deal.

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

A friend of a friend told me about it. No real negotiating. They just wanted $15,000 for the property.

How did you finance this deal?

Cash

How did you add value to the deal?

Cleaned it.

What was the outcome?

Created a nice short term note with minimal invested.

Lessons learned? Challenges?

I posted this in the MLS hoping to wholetail it. My friend Erik kept telling me to use bandit signs. I was reluctant since this was way out in the country. I finally relented and it sold in about a week.

Lesson learned - Don't underestimate the power of a bandit sign!

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

N/A

I'm meeting with a new investor tomorrow.  He has the potential to add a couple of million to my working capital.  

He's been interested in getting to know my business and we've talked quite a few times.  My read is that he wants to tiptoe in before just handing me a ton of cash, which is expected. 

I just secured a pretty sweet flip. Under contract for $206,500 with a $340,000 ARV. My estimate is $50,000 in rehab.

With investors in the past, I've offered to split the first deal profits but on this deal, I think it will set an unrealistic expectation.  I'm estimating the total profit will be ~$63,000.  So paying out ~$30,000 for $260,000 invested in 4-5 months is a bit much to me.  

With seasoned investors, I normally offer a flat rate of 8-10%.

I'm curious how others have structured their first deals with new investors. 

Cash flow is usually minimal.  We do this to collect on the back end of the loan after the wrap is paid off.

The interest rate we charge is 10.9% here in San Antonio. 

Usually about 10% down. 

We leverage our notes so we tend to cash out and make a lite cash flow for 10 years and then have 20 years of beautiful retirement income =) 

Our average is about 7 years if they do.  Which we capitalize on the amortization table then. 

Best way to get a strong 10.9% return backed by real estate for your retirement!

I've been investing for a while now.  Have done many deals and had my hands on hundreds of them.  Mostly owner finance, but some flips and rentals. 

I had a piece of property fall in my lap the other day.  Single house on 5 acres on a river about 1 mile from the Lucky Eagle Casino in Eagle Pass.  For those unfamiliar with Texas, there is NOTHING near Eagle Pass and that casino is a big draw since it is the only one in Texas. 

From what I know the casino has been aggressively growing and I've requested some additional information from the local Chamber of Commerce.

I don't want to try and flip a house that far away from home but I think it might be perfect for an RV park.

It will need to be rezoned, if possible, and from what I've found there is city water and electric. 

 It is in a flood zone, but I believe that isn't a problem for RV parks. 

I'm heading there to check it out tomorrow (2.5hr one way) and want to know if there is anything I should really pay attention to while I get my eyes on this property for the first time.  

We do Craigslist, Facebook marketplace, and good ol' fashioned bandit signs mainly.  That keeps us quite busy here in San Antonio.  We don't' really use the bigger sites like Zillow and such as our typical buyers wouldn't be found there.  

We've also toyed with the idea of advertising in rags that get distrubuted in our neighborhoods but haven't pursued that yet. 

We use Five Star Title in Seguin for just about all of our deals.  They have a satellite office here in San Antonio for closings.  They are very responsive and hustle hard when I've got some crazy deal that needs to close quickly.  I appreciate that.   

There are a number of FB groups for wholesalers in San Antonio too.  Find them and start browsing for deals.  They are definitely getting tighter here in San Antonio but you can still find them. Stay patient. 

How can I help?  

We do about 120 owner finance deals a year in San Antonio and have for nearly a decade.  We also do a handful of flips, subject to's, and rentals.