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Real Estate Investing Reality Show : Kicking off the Renovation, Episode 2

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PatrickRiddle Category: Business Strategies
Current Grade: A
Total Views: 577
Member Comments: 4
 Posted on: 09/26/2008
Posted by: PatrickRiddle
Blog Points: 488
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It's one thing to read about real estate investing techniques, strategies, and tips. It's a whole other thing to actually see it in action.

If you missed the first episode, watch it first. We take you through our due diligence prior to purchasing the property.

http://www.realestateinvestor.com/media/blog/4608/

We just closed on the property last Wednesday, September 17th. The second episode commenced last Friday when we kicked off the renovation.

Here's a quick list of what you'll find in the video:

  • Meet our partners on the deal, Sean Hall and Eli Sanderlin.
  • How the lead came in and a "Must Know" Tip on marketing.
  • Why Sean and Eli decided to partner with us on the deal and the value of working together.
  • Some interior shots of the property after the initial tear out.
  • How the renovation will unfold.
  • How we plan on adding curb appeal with Chris Williamson and his crew.
  • The Negotiation and another "Must Know" Tip for success.
  • Our total repair estimate and time line to get it all done.

To give an overview on the deal, here's what we are working with:

Purchase Price: $58,000

Repair Estimate: $15,000.00

Estimated ARV (after repaired value): $115,000.00

Time Frame for Renovation: September 17th to October 16th

As I stated in the video, it's crucial based on our exit stategy of retailing the home to finish the renovation by the middle of October. This will give us a solid month to market the property prior to the winter months.

Stay tuned for the next episode!

Patrick Riddle
http://www.MustKnowInvesting.com
Current Grade: A
Category: Business Strategies
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PatrickRiddle

Posted By: PatrickRiddle on 10/01/2008
Thanks Colin! Just want you to know that I think you've done an excellent time with the site. Thanks for providing this incredible resource for the investing community.
 
Colin
AdminAmbassador
Posted By: Colin on 09/30/2008
Great job Guys! Well done! Ton of great info. Hope ya make a bunch of cash on this one.
 
PatrickRiddle

Posted By: PatrickRiddle on 09/26/2008
For all of our deals, we use a combination of private and hard money resources. Usually on creative deals, we use private investors because they don't require as much cash. On cash deals, we typically use hard money.

This was a cash deal at $58K plus the rehab is going to run us $15K. We borrowed hard money for all costs associated with the deal at 1% per mo. and a few points. The term is 6 months and we pay the interest monthly.

Saw that you subscribed to the blog. Appreciate it and the comments!
 
dwsproperties

Posted By: dwsproperties on 09/26/2008
Great project Patrick.  Keep them coming, also if you have time can you share how the deal was financed?  I know there are four of you involved but did you get the owner to carry back any financing?  Did you need to get a rehab loan?  Curious minds want to know so we can steal your ideas and duplicate your success up here in New England.