Have worked for New Home Builders for 33 in Sales and Sales Management. Was the VP of Sales and was responsible for the sales revenue for 17 communities across 5 counties in Southern California. Also ran the New Home Trade-In program which was a fix and flip operation for builders. Have owned and operated a laundry mat for 12 years and in 2015/2016 built a new laundry mat in Temecula Ca. My passions are building high performance teams, real estate, travel, golf, yoga and tennis.
Address: 5635-5639 N. 49th St. Ruston Washington 98407
Number of Units: 2
Value Add Deal? Yes
Purchase Price: $479,000
Estimated monthly increase projected? $450-650/unit
Anticipated value after value add: $550,000
Estimated Cash on Cash Return: 6%
Chris and Chelsea Grant met with me up in Tacoma…referred to me a contractor which I employed and the contractor did a fantastic job. They also gave me insights on the tenant landlord laws as I was going through the process. My coach Jeff Greenberg referred to me Madison Specs as a Cost Segregation company and he also gave me advice on working with property managers. He actually spoke with me every step along the way and was a tremendous help as I was going through the negotiations on repairs with the owner.
Amazing…have met many new friends and have started to develop the relationships that will start to turn into partnerships over the next year and have been participating in a accountability group and am now participating in a smaller group and we are master minding a Joint Venture
Searching listings I was being sent by a broker
Non-Owner Occupied Financing with 25% down. Paid 8k in points to buy the rate down
From 401k savings. In order to pay for the tax hit for the withdrawal…I paid for a cost segregation study on the advice of my coach(Jeff Greenberg). The ability to offset the taxes through the use of tax segregation is invaluable.
$0…but I did have to borrow 10k to finish the renovations
There was quite a bit of deferred maintenance and the seller did not want to fix anything. This meant I had to dig deeper for cash to renovate. We also gave rent increases to both tenants at the same time and both decided to vacate. This caused to renovate both sides at the same time…when I really initially planned to renovate one side. This meant I had to have more staying power from a cash standpoint.
Must have more cash set aside than you originally thought. I renovated the property very nicely and thinking I could have scaled it down a bit. Would have only increased rent on one side so as not to have both sides vacant at the same time. Also, I have a property manager that only charges 5% and as a result…they are not executing to my standards. I have my own standards or Mission Statement and I expect those that I do business with to do the same. Because of this…they are very time consuming…would prefer something a little easier more hands off.Hopefully, this will now shift into auto-pilot.
* These examples depicting income or earnings are NOT to be interpreted as common, typical, expected, or normal for an average student. Although we have numerous documented successful deals from our coaching students, we cannot track all of our students’ results, and therefore cannot provide a typical result. You should assume that the average person makes little to no money or could lose money as there is work and risk associated with investing in real estate. The students depicted have participated in Rod’s training and coaching. The participants shown are not paid for their stories.