How it happened
Cori and Janell had a lot in common, including the belief to buy a house, you need to have a spouse and/or a ton of cash. They both wanted to invest in real estate but didn’t know where to begin.
After their first ElleFactor Circle session, Cori and Janell started chatting about different real estate deals. Eventually, Cori invited Janell to check out a cheap house that needed flipping. Cori realized Janell’s input was valuable, since she remodels homes for a living, so Cori mentioned an equity split on the house to Janell as a possibility. And the rest is history.
Pairing up for time, money, talent
It’s been said that there are 3 key resources to any project: time, money, and talent. Cori and Janell just taught us all an important lesson: if you don’t have all 3, partner with someone who’s got what you’re missing.
Janell’s got the talent. She remodels homes for a living.
Cori’s got the time. She can move into the house and manage the property.
They both have the money, since they decided to split the costs 50/50.
Let’s break down those numbers
Janell and Cori are splitting everything equality, including equity, monthly payments, and renovations cost.
List price for the house: $260K
Purchased for: $250K
Cori’s salary: $65K/year
Janell’s salary: $70K/year
Down payment plus closing: $15K (3% down)
Renovation estimate: $50K
Anticipated equity: $60-$100k
Tips from Cori and Janell
“You don't need a man! You don't need tons of money. Janell and I could each do this deal alone, but having an ally feels better. If you’re going to buy a turnkey property and not do a reno, it would be TOTALLY fine to do it alone. Just make sure to house hack!” -Cori
“Use creative means to get the funds you need. We’re using my renovations crew for the skilled labor. I have access to free or low-cost materials. And when the money runs out we'll either go for a hard-money loan from family or negotiate very flexible payment terms with one of our companies.” -Janell