Meet Jake

Jake bought a 3 unit property in 2021 with big plans. The property was in desperate need of repairs and cosmetic updates. Where some saw a headache, Jake saw opportunity. He would execute a real estate investment strategy known as a “BRRRR” flip.

The idea is to buy low, renovate the space, rent out the apartments, refinance now that you have added value to the building, and repeat by purchasing another property with proceeds from the refinance. He would be in possession of a newly renovated rental property with positive cash flow and have enough to put money down on another property. 

The Problem

When Jake ran his projections in 2021, he figured interest rates would be 3.5% in 2022. Interest rates were now at 7.5%, causing his mortgage payments to be higher. After speaking to a real estate professional from The Giambra Team, Jake realized he needed to change his strategy. He could be in possession of an asset that only made $100 a month after debt service or sell the building for a gain of $80,000. Not only would he earn $80,000 in profit but he could also defer the capital gain with a 1031 exchange.  Jake chose the latter and was able to keep growing his portfolio.

The Lesson

Real Estate is flexible, tangible, and will always be in demand. While the BRRRR flip didn't make sense for Jake on this one, he might do another down the line. With less deals going through, contractors have been more available for his projects. He may also be able to offer lower purchase prices since he won't be competing against as many buyers. We may not be able to control the wind, but we can adjust our flightpath. With a knowledgeable agent by your side, the sky is the limit.

— Conner Bolles, TGT Real Estate Person

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CONTRACTORS WE RECOMMEND

A great contractor is someone you can rely on to get the work done on schedule and within the budget. That is why The Giambra Team recommends the following people to do the job!

Lakeside Contracting — General Contractor

716-563-4457

If you’re in need of a commercial contractor, Jim and Rodney have got you covered! Professionalism and dedication to their craft is what you can expect when hiring this team.

Scott Janowski — Painting

716-713-9507

Scott Janowski, owner of Wet Paws Painting Company has provided top notch painting and wallpapering services since 2009! He offers a simple yet effective way to upgrade your home and give it that fresh look!

Chuck Buscaglia — Pest Control

716-990-4181

It is that time of year again! As we get into the colder months in Buffalo, rodents and insects begin to make their way into warm homes. Chuck is committed to giving high quality service to keep your space pest-free!

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BUYER NEEDS

Our buyers have specific needs and we are committed to finding what they are looking for! If you have a property that might fit, please contact one of our team members.

Fixer Upper Investment Property

• City of Buffalo or first ring suburbs
• Any size/type of property
• Cash Buyer

Price range: $50k-$100k

Historic Single Family Home

• 1,200 sqft with a small yard
• Near the City of Buffalo
• Something with charm and character

Price range: $150k-$200k

Large Commercial Property

• 10,000+ sqft
• Investment property
• East side of Buffalo

Price range: Open

Commercial Property in Buffalo Suburbs

• 3,000 sqft minimum with outdoor space
• Dog training and boarding business
• Lease or lease to own

Price range: Open

(call for addresses, 716-239-6432)

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