Ford

[gaulkin]

Just wondering why didnt he do the second option and then the first, add value with a nnn tenant and sell for even more.

"I DON'T KNOW WHAT TO MAKE OF IT. PROBABLY DOUBLING THE RENT IS WHAT SOLD IT FOR DOUBLE."

Ah, NO DAVE.....That DOUBLE RENT.....Was an OFFER made to JOHN by an interested tenant BEFORE he even FINISHED the rehab.  JOHN never rented this building.

It was at THAT POINT that John asked me for the triple net lease I use.   

SO......John had 2 offers on the table....ONE to BUY at DOUBLE his cost, and one to LEASE for multiple years NET, NET, NET at a HUGE increase from the previous tenant.

He SOLD.....and by the looks of it!!!  He ain't standing around HOPING to get LUCKY!!!

[rookieNYC]

because he was smart and took the fast turnover and wasn't greedy....pigs get slaughtered...

[gaulkin]

because he was smart and took the fast turnover and wasn't greedy....pigs get slaughtered...

Im going to assume he sold at the top then.

[fdjake]

Sold at the top???

If the "top" is a 100% return on a $200,000 investment in ONE MONTH.....Yea, He sold at the top!

John is very smart, he's been watching his local market for a long time (in addition to actively investing in it)  He noticed a NICHE that wasn't being filled.  HIGHER end homes that needed work and weren't selling because of that.  By selling that commercial building so quickly he was able to roll the profits right into another property which should make him another $60 to $75K.

So........2 deals.....and a PROFIT of OVER a QUARTER MILLION DOLLARS!

"He wasn't greedy.....Pigs get slaughtered."

No truer words have ever been written!

[gaulkin]

I still have to disagree that adding value through placing a long term good credit tenant in his building and then selling makes him a pig.

Sold at the top???

If the "top" is a 100% return on a $200,000 investment in ONE MONTH.....Yea, He sold at the top!

John is very smart, he's been watching his local market for a long time (in addition to actively investing in it)  He noticed a NICHE that wasn't being filled.  HIGHER end homes that needed work and weren't selling because of that.  By selling that commercial building so quickly he was able to roll the profits right into another property which should make him another $60 to $75K.

So........2 deals.....and a PROFIT of OVER a QUATER MILLION DOLLARS!

"He wasn't greedy.....Pigs get slaughtered."

No truer words have ever been written!

[rookieNYC]

I still have to disagree that adding value through placing a long term good credit tenant in his building and then selling makes him a pig.

gaulkin,
 Forgive me for my clearly sarcastic tone...But are u blankin kidding???...John in NC made %100 in one month...Why would he risk that kind of return/exit for a *good credit tenant*...Is it me ????..Do you take into account that he made %100 in ONE MONTH....Did it ever occur to you that maybe,just maybe he is going to make %50-%100 again with the profit he took...Had he done it your way and took the *good credit tenant* what would that have achieved????....He gets to collect some BS rent every month ...vs taking %100 gains in ONE MONTH and having the oppurtunity and the capital available to do it again...You cant even compare being a landlord to taking a %100 ROI in ONE MONTH 

[gaulkin]

I should of been more specific, i ment the practice in general. Im not saying there is anything wrong with what he did. One hundred percent in one month is an amazing deal for him and he should be proud of it.

ps. you mis read my post, i said put in a long term good credit tenant which adds value to the property and then sell it for an even greater price.

I still have to disagree that adding value through placing a long term good credit tenant in his building and then selling makes him a pig.

gaulkin,
 Forgive me for my clearly sarcastic tone...But are u blankin kidding???...John in NC made %100 in one month...Why would he risk that kind of return/exit for a *good credit tenant*...Is it me ????..Do you take into account that he made %100 in ONE MONTH....Did it ever occur to you that maybe,just maybe he is going to make %50-%100 again with the profit he took...Had he done it your way and took the *good credit tenant* what would that have achieved????....He gets to collect some BS rent every month ...vs taking %100 gains in ONE MONTH and having the oppurtunity and the capital available to do it again...You cant even compare being a landlord to taking a %100 ROI in ONE MONTH 

[John_in_NC]

Hold on here. I don't know where the one month came from or the double the rent. Both of those are not true. If you click on the public record I posted, and click on deeds, you will see I owned the property just shy of 3 months. It also took me about a month and a half to close on it. So I spent a total of 4 and a half months "working" on this property.

I never doubled my rent because I never had a tenant in it. Rookie said it best with his last post, I sold it because I had a chance to double my money very quickly and move on. The guy who bought it was leasing a building across the street with only two garage bays, and he wanted to double his taxi cab business. He made the mistake of telling me he would have to re-write his dispatch if he moved more than a mile away. Did I get lucky? I don't think so. I never even had a chanced to advertise it for rent, let alone for sale before he found me. I had a deal in the works that was even better than this one in my opinion,but I wasn't able to sell this one fast enough and it got away from me.

I don't know that I will make as much as 75K as FDJake said on the home I'm doing now, only time will tell! I have Masonite siding on it that is costing me a pretty penny to fix. I knew it was there when I bought it, but my realtor is saying homes this nice must be perfect  and at least 10% under market to sell quickly.

Ok just wanted to clear this up a bit.



John

[John_in_NC]

ps. you mis read my post, i said put in a long term good credit tenant which adds value to the property and then sell it for an even greater price.

You have to keep in mind that your end buyer will probably need financing, and in this market, they are going to have more trouble than if you sell it so an "owner occupier" like I did. See it's much easier to finance the building if you are running your own business out of it, rather than purely as an investment. Sorta like owner occupied vs investor loans for residential.

[gaulkin]

Thank you for the clarifications.

ps. you mis read my post, i said put in a long term good credit tenant which adds value to the property and then sell it for an even greater price.

You have to keep in mind that your end buyer will probably need financing, and in this market, they are going to have more trouble than if you sell it so an "owner occupier" like I did. See it's much easier to finance the building if you are running your own business out of it, rather than purely as an investment. Sorta like owner occupied vs investor loans for residential.

[rookieNYC]

Rookie said it best with his last post, I sold it because I had a chance to double my money very quickly and move on. The guy who bought it was leasing a building across the street with only two garage bays, and he wanted to double his taxi cab business.

It was a no brainer...I wouldve done the same exact thing....Well done John .....

[fdjake]

Yea,  Thanks for clearing up that time line John...My mistake.
 
That deal still makes me SMILE!

If you want....Send me some interior pics of this latest project...I might have a few ideas for you.

[John_in_NC]

Awesome, thanks! I will today!

John