All Forum Posts by: Zachary Karczewski

@Todd Jones, @Sarah Sullivan Thank you for the kind words!

@Pat Lulewicz @TaRa Mehta  I definitely got in before the rate hike and had my pops cosign the loan to get a better rate as well. I used CrossCountry Mortgage and used a guy named Waldry (phone#201-640-9700). Call him and he will help you out, let him know my name as well. We have done many deals together. It is really hard to find ppl who will help you cash out refi. Took me forever, so I get it. Most will get you pretty good on basis points, but hopefully your deal is profitable enough to where it is still worth it. The more you work hand in hand with the same people the better. Ive attached my Closing ALTA for the refi so you guys can see the numbers. My interest rate is %3.875

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $318,000
Cash invested: $154,000
Sale price: $635,000

Bought this property off of a cold call with the brokerage I was at. This was my second flip. Purchased 318k with a remodel cost of 154k. My closing costs were about 24k for both purchase and sell combined ( I am a licensed realtor). So all in costs were around 178k. So I profited about 139k on this particular home, which was great. But my biggest win during this time period was convincing two contractors to come work for me full time. These were two guys that I trusted, did quality work, and that do well for themselves, but they were willing to take a chance on me. Still work for me to this day. These were my first two people to come onboard this crazy ride I'm in. This allowed me to really move with a purpose forward. Especially in this day in age where every GOOD contractor is booked out months and all you're left with is people who half *** things.

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

I'm all in on RE Investing. Was wrapping up my first BRRR/flip and looking for another. I was HOOKED

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

Cold call. They were in a dire situation and needed to move on. The home was tried on the market with no success due to the condition of the home. You couldn't be inside for more than 2 min without your eyes watering due to the cat piss smell.

How did you finance this deal?

Rolled the profits from my first deal into this one. Syndicated some money through friends and family to help finish off the remodel cost.

How did you add value to the deal?

Used a interior designer who was just starting out to help get the luxury look you see in the photos. Still was getting my sphere/network in place at this point

What was the outcome?

Purchased for 318k with 178k in total costs. Sold for 635k netting me about 139k. Property was sold at the top of the market at the time for a cash buyer. No appraisal was needed (Thank god). Comps in immediate subdivision definitely didn't support the price, but I knew the area well enough to sell people on what was coming which was a huge entertainment center that will be within walking distance proposed by the town of Holly Springs.

Lessons learned? Challenges?

I wish I had my quickbooks set up by this point and had the framework to correctly account for the ins and outs of my business... receipts, costs etc. It is really hard to back track. Especially when you are GC on your own job and are taking in hundreds and hundreds of receipts for each flip.

Investment Info:

Single-family residence buy & hold investment in Raleigh.

Purchase price: $95,000
Cash invested: $148,000

BRRR'd this one at 5401 Live Oak Trail Raleigh, NC 27613. Bought 10/20/20 for 95k cash and put around 148k into the project totaling 243k. Appraised at 530k after the repairs so I cash out refied 396k. 396k-243k= profit of 153k. Currently cash flows me $1005/month. This was my first flip ever. Door knocked the same door for 8 months until they finally made the deal.

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

Left my full-time job working as a Subsea Engineer Offshore for numerous reasons. Found this deal, pulled 95k from my 401k to purchase and went all in. Rolled the dice, took calculated risk, and it paid off big time.

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

Was helping a lady across the street remodel her kitchen. Saw this home in bad shape with overgrown yard. Owner had passed away years ago and passed it to his two daughters who didn't do anything with it. Drove an hour away for 8 months door knocking the daughters home to try and make a deal. The city of Raleigh towards the end of the 8 months put a notice on the door saying they were going to fine 15k per month if the property wasn't cleaned up. Took a picture and used that as leverage.

How did you finance this deal?

Personal money to purchase home, and syndicated the construction cost through family.

How did you add value to the deal?

Worked my *** off building my network base with vendors on this deal. This one took over a year start to finish. Could probably do it in 3 months now, but it was my first deal and I didn't have full time employees at this point. I was calling 4-5 vendors to quote out every little job to make sure I wasn't over paying. This took a lot of time and energy, but now I have a general idea on what things cost and have my vendors lined up for any job.

What was the outcome?

Made about 140k profit after all expenses after my cash out refi and the property cash flows 1005/mo. I was extremely persistent on this deal to get it and took a big risk, but it ended up being a home run. I was lucky in the sense that I knew I could mess up big time and still make a profit due to the price I got the home for in the area/neighborhood I got it. This is a highly sought out area in Raleigh.

Lessons learned? Challenges?

1). Don't let your mind get ahead of itself. There is a solution to every problem you face.
2) Importance of self care. I was working such long hours on this one
3) Valuing your time and finding people you can trust is key.
4) Being my 1st flip. Exhaust all options to find right solution
5) KEEPING TRACK OF RECEIPTS and having a system to do so beforehand.
6) Track all numbers!!
7) You are here to make money not to live in the property. Know the difference.
8) Finding ppl u trust!!