Wholesaling Real Estate | $5000 Rehab


(upbeat hip hop music) (slow electro hip hop music) – Do you know what I
bought this house for? – [Cameraman] We were here
one time, don’t forget. – All in $27,000. – [Cameraman] 27? – Mm hmm. – What happened? You age in dog years? (mumbling) – [Francis] I thought you weren’t coming. (chuckling) – This is so fast. This is great. – Aint that cool? – Fast. – [Cameraman] Yeah it looks really good. – Doesn’t that look good? – Heck yeah. Got some wet spots. – No I used this… – But that was like a- – Sanding it down because
there was a black mark, and I’m like “Don’t worry about it, man” That’s wood floors. – Yeah exactly – [Francis] Ya know? So.. – [Max] You should have seen this. Man Doogie, I know we
got some good floors. – This was all burned out. – [Cameraman] Oh really? – Yeah, this was so… the guy, you know, he said had to put two coats of the gray. So that’s bull about, you know, it’s the same even if you prime it, you can go with a lower quality? No – Okay – Yes. Good to know. – Lesson learned – Yeah, so that’s good so
here’s the deal now, okay? I talked to Tony, to
see if he come because the heating unit is in the closet, see if he can just tie…
entire air conditioning whatever, he’s gonna come look. So… the thing is now there’s
not a lot of counter space. – Yeah, I know that. – If you’re gonna rent
it, you know, or whatever, I mean there’s an option. It’s not that pricey, I
don’t think, come see. – Let’s explore our options (singing) – It’s actually the layout- – Oh this is a beautiful… just joking. – It’s a great layout… for a small house – What we gonna do with the tub? – Look at that. – What are we gonna do with it? – Look how pretty it came
out. He cleaned it up. You forget this tub. – No, actually, I never
walked in here on purpose. – Oh man, that tub was filled – – Can we paint that? – Well, I mean if you
don’t like the color… Because, you know, otherwise
you can just grout the places It’s not too bad. – It just dates it. If it
was white, it’d be cool. – Here’s the deal. Right now,
there’s a refrigerator here. Then we got 18- – Why can’t we put it over there? Oh yeah, wouldn’t make sense would it? – Right. So, this the way it is right now. There’s a cabinet here.
Eighteen with the doors, then you got a top cabinet,
you got the micro, stove, then you got corner cabinet, and then here a 12 and a corner and then here a 12 and then here a 48 with a sink and then that’s it Because here, you see where the washer is, you see where the dryer is? – Where’s the dryer? (laughing) – [Francis] And then there’s a sink here. – [Max] So there’s not
much counter space at all. – Unless we move the stackable back here. – Over here? Yes, that’s
where you should move it. Oh man, but then we
have to move the pipes. – Noel is the expert.
Noel, what do you think? – Is it hard to move the pipes? (inaudible) – [Francis] Yeah – [Max] Yeah, let’s move with that. – [Francis] And then we can
just go all the way here, now you got some counter space. – [Max] Yeah, finally. – [Francis] Especially,
I mean, I don’t know if you’re gonna rent it or sell it. Because if you’re gonna rent
it, I don’t know if you wanna- – [Max] I gotta see what happens, when it’s all said and done. – I mean, it’s looking nice. – I know. – I mean, it’s looking
so nice and so easy. Whatever you want to do. Okay. So, what do you think? Look good? Maybe outside it looks… – The outside was the
reason that I bought it. – [Francis] The outside
really looks great. Look, they sprayed the- – [Max] They look brand new – They’re metal. – [Max] They look brand new. – Yes. There’s nice metal. And look this is nice, too. – I gotta put something
underneath there, right? – No, you can just paint it. – Like this? Oh, just paint
it? Yeah, you’re right. – Yeah, oh yeah. A nice, good
paint job would look great. Maybe over there, you know,
just cover back there. But, look at this space. This space… I was trying to see where it
goes in at the house but… – I can get like $800 rent over here. – Yeah. – I could also get, like $115,000, I mean I could probably get
$105,000 on this house. – You think? – It’s very small, but I don’t
know. That’s the only issue – [Cameraman] But it’s nice. – [Francis] Yeah, I mean,
it’s turning out real nice – [Max] What are you showing me, Francis? – [Francis] Huh? – [Max] What are you showing me? – [Francis] I mean, this a nice space. – [Max] Yeah, it’s an extra bedroom. – [Cameraman] Harry Potter (laughing) – [Francis] Yeah but, you know, (mumbles) – [Max] No, no, it’s good but
that’s the real nice space – [Francis] And the thing
is, this is a house like a… Type like a… riser,
you know what I mean? It’s not just a house, it has
a nice yard, it has, you know? It’s a whole thingy that makes this house. – [Camerman] A whole thingy – Yeah. (laughter) – This is a nice shed. – Let’s see what (mumbles) – I’m telling you, if I don’t
get $105,000, I won’t sell it – What’s all this sh-? – [Cameraman] It’s my beep laboratory. – I can tell Francis, you got some stuff in here? Oh, that’s the sink. The country sink. The stainless steel country sink we had. – [Francis] Oh, is that there? Nice – Yeah. – So the estimate on
this house is $60,000. – Yeah, they crazy – This is only issue, 1004 square feet What did you pay for it? – $27,000 all in – $27,000 plus repairs… yeah, I mean, that’s still great – Mmhmm – So yeah, I don’t know. This is closed? – Yeah, Shaun’s got the key
or somebody’s got the key or the key’s actually on the lock box – We sent some stuff
up but this is not much – No, no I didn’t say
much. It’s mainly empty I probably will add this property to my passive income stream,
just because it’s like, it’s in a good, decent neighborhood, the house is completely paid for. If I want to- – (mumbles) – Well if not, I can
just do a cash out refi. I could put all the money
in it and go to the bank and pull my money out and
have a $300 dollar payment and charge $800 bucks – [Camerman] Explain to me
what that is. A cash out refi. – I mean it’s like a… what’s it called? – So basically, cause
I bought it all cash, I’m gonna rehab it all cash, so I got $27,000 in it for the total – [Francis] That’s right,
equity loan, basically. – Well… I’m gonna remortgage it. – [Francis] Yeah. – Basically I got all the
money in it, I’ll probably be close to $50,000? No… no way. Well by the time I put the
AC in, I might be at $50,000 – [Francis] Yeah I mean labor is $5,000 That’s not bad at all and
then so far in materials, it’s not much but, you
know, we have to get the- – Counters and all- – The countertops are not
that much but the cabinets – My biggest cost is gonna
be putting the AC unit in it – Yeah – That’s $5,000… $5,600 – No! – That’s $35,000 – $35,000 if you’re putting new heat bomb- – Yeah, that’s right – Yeah, no – I’ll probably be somewhere 27… 37… I’ll be around $40.000, $45,000, all in. – Yeah. – And this thing will appraise by a bank for at least $80,000, $85,000 I know he doesn’t think so (laughing) – [Francis] $85,000, I’m good. I mean, more than that is fine
but yeah, with this market – But it also rents for $800, $850 – Plus the comps right now are high here – I know they’re high cause
the house across the street- – Yeah, yeah, so it’s all
in the, you know, the comp The only think like I said
is… only 1000 square feet – (sighs) So this is a nice
property, picked it up cheap coulda been something I easily wholesaled. Could have easily wholesaled this one. – Well, you know, once the… – I coulda easily
wholesaled the way it was. It was $27,000, somebody woulda gave me- – Yeah but if you were
a wholesaler, I mean, you wouldn’t have gotten
what you can get now. – Oh heck no. – And with not a lot of investment. – But that’s my point, is
like, because we didn’t, now we have the option to go do- I mean, you look at the
outside, it’s a beautiful crib Got new roof, new outside siding, labor cost me $5,000 to
remodel this whole house I like this house though. I like it more now – [Francis] Looking good though huh? – Mmhmm – [Francis] Good job huh? – I still think I could get
a $100,000 out of this thing He don’t think I can The airport’s right there The airport we went to, literally at the end of this driveway, it’s literally, runway There used to be an old
runway that was actually towards the end of this street. – [Cameraman] Reminds me of
being back in Maine at my dad’s – Yeah but you got an
international airport – [Cameraman] I like the carport – You want it? – [Francis] Yeah that’s nice – I owner finance it to you – [Cameraman] How much? – [Max] How much down payment? – [Cameraman] Yeah (laughing) I’m curious – I think it would be probably
$5,000 to $7,000 down payment – [Cameraman] That’s not crazy – Yeah – [Cameraman] That’s pretty good. – [Francis] That’s an employee discount. – [Cameraman] I can find that, somewhere – [Max] In your baseball cards – [Cameraman] Exactly. One Michael Jordan. (laughing) – It was a mess. This
was a hoarder’s house. So, when we bought this house, it was three 30-yard dumpsters – [Cameraman] What? – Plus more. So 30-yard dumpsters are
longer than the front yard. It’s huge And three of them filled up and I got those two windows replaced. – The thing is that every
house is its own animal. It’s a maze. What was good
about this house is that because there was that fire, the insurance paid for a new exterior You know what I mean? I mean the whole exterior is brand new. – Yeah – I mean, you know, what else
can you get a house with a…- – So here’s how I bought this house. Here’s how I bought this house. This was on the tax foreclosure list. – Yeah, it was ready to foreclose – So check this out, was
it the tax foreclosure? No it was the regular foreclosure list. – Was it? – It was on the regular foreclosure list and Legacy, a local
bank here had a mortgage of $12,000 on it, no, $17,000. Well $12,000 plus the fees
made it all $17,000 dollars. It was inherited by brothers
and sisters and stuff, three siblings or three- I don’t know. And they were dispersed
and they couldn’t pay the mortgage here, which
was only like $400 bucks – [Cameraman] What? so it was going into foreclosure. – But nobody was taking care of the house – Yeah, no! The house,
the way you see it now, is the way we got it outside.
We didn’t fix anything. What happened was, I used Skip
Tracing, I found the niece of the aunts and uncles that inherited it. – Oh yeah, she wasn’t even inheriting it – She wasn’t inheriting it.
So I paid her $1,000 dollars to go find and get my
signatures for the people that want to sell it and I gave them each $3,000 dollars upon signature, apiece. So $3,000, $6,000, $9,000
and gave her $1,000 so that was $10,000 and
then a paid off the bank at $17,000, which would
have gotten me at $27,000 so this thing never
made it to foreclosure. I got all the foreclosure
and I got a house, which I think is worth like $85,000 – $100,000, $105,000 – [Cameraman] And that’s creative – [Max] I think it’s worth $100,000 Where else in Winston, Salem, can you find a 3 and a 1, a 3:1 for $65,000 dollars? – Look at the neighborhood.
All their houses are… – I thought we were gonna
put in a new tub to be honest – Well the tub is… did you see it? – The tub looks good but a
new surround or something – I don’t know what you’re
doing with the house so it’s… – Cause that’s the only
thing that dates the house after we be done with it – You’re right. I mean the line with the- – Everything else is new. – Just the line of floors doing – And what we gonna do
with the wood floors? – So we’re just going to buff it and put a coat of your thing. Just one proper coat – No maintenance. So if I were to turn it into
a rentals, no maintenance. – Yeah. So we are changing the hinges
and the knobs on all the doors just to make it look clean and new. The vanity’s new, from an
old job we had, extra vanity, got a faucet over there, paid $35- – Where we gonna get the
cabinets and stuff from? – Yeah, that’s why I was
looking and seeing what it was – Web-Don won’t sell it to us no more? – Oh, yeah Web-Don has
been tough but I’m…- – Oh, you’re a vendor now. – I bought counters from them – So that 3:1.5 sold for $117,000 at $87 a square foot so I
can get $90,000 for this – $87 a square foot? And
this is 1,000 square feet – So I can get $90,000. – Right – Okay, I got a 4 o’clock call. – Okay, man. – And then I’m gonna
try to stop by the bank and get Noel a deposit – Okay. Let me know if there’s
anything coming along. We need to talk and
see, you know, what’s up – Tomorrow morning, 9 o’clock,
me and you at the office – Sounds good – Sittin’ on the porch – [Cameraman] Chillin’ – So I actually wanna
pull up the opportunities on the map real quick,
just wanna check something. (funky music) As a landlord, when you start
buying in these neighborhoods, you start wanting to buy more in it – [Cameraman] Right, yeah. You know, protecting your investment. – Yeah, you wanna start
buying more of them in the same neighborhood. If you look for things
that would make sense in community development-wise,
that you could just purchase or do brand new builds. – [Cameraman] That’s cool – Like all of this. Up here. It’s all in the opportunity zone. So somebody were trying to
buy all that acreage there and build something, or buy
this store and you know, just stuff you gotta start thinking of… – [Camerman] How can you rebuy the lots? – But you gotta put together a project that makes sense for people – [Cameraman] Right – [Max] So what they’re
saying is, “Don’t come in here “and just push these
people out. Build something “that is-” – [Cameraman] Helpful – Exactly. I’m looking to
find a GC that builds houses but I got a good lead on the
event this weekend too though. – [Man On Phone] Uh-huh? – Yeah. – [Man On Phone] So you’re not interested in no medium discounts? – I’m always interested
but I don’t understand what it would do. – [Man On Phone] Right.
Well, just to see what- I wanna deal in $160,000 builds – Yeah, we can do that, we
can do that, that’s fine – [Man On Phone] You know? All right Talk to you later. (funky music)

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