All Forum Posts by: Greg Dickerson

Is there a benefit for a flipper to create a construction company and have your holding llc pay your construction company llc to pay the contractors?

Hi Everyone,

I am evaluating a new type of flip opportunity and I was curious if any of you have similar experience. I am looking at a partnership with a seller who owns a duplex outright in a very affluent area of South Carolina. The owner wants to transition the duplex into a single family home and then sell, but he doesn't want to finance or manage a renovation himself. The plan is for me to handle the renovation project and cost, and then take a proportionate share of the net profit after sale. After initial analysis the margins look very strong. My main concern is protecting myself, as I have no equity in the property and legally don't know what safety nets are available to make sure I get properly paid out on the back end. Has anyone done a deal like this in the past or have some guidance on how to prepare before commuting? 

I appreciate any insight you can give me!

Hey guys, 

We just acquired a flip project in Dallas. An architect told us that the city of Dallas is backlogged by 8 weeks for approving addition permits. I understand, we as a city, have though a lot recently but this is a waste of time! God alone knows how long we'd have to wait for an inspection.

Any one experienced with this and found a way to navigate better through this permit process? I really wish we can start work before the plan gets approved. 

Thanks,

Mil

Hey, everyone! This is my first post and I am hoping to gain insight into my first multi-family deal. I am looking at a duplex for sale and it seems like a great deal from every angle except that the current tenants are paying considerably less in rent than what the area average is and the seller refuses to send me the lease contracts. They say the leases are up in August/July respectively so I am not worried about getting rent value down the road, I am just concerned that the language of the current contracts is not ideal or that there is something wrong. I’m not sure how to convey that I’m worried about potential contractual obligations that I’ll be on the hook for without seeming intrusive or demanding. What would you do in my situation? Thanks for any help!

This is a great deal and I’m trying to find a way to finance it. This is my first commercial deal so I’m still learning how it all works. My brother and I have enough for 20% down payment. Or should we go hard money and keep our cash for other properties?

How is your MF market price appreciation?

I hear a lot of folks claiming their market is on "fire", but nobody ever supports that with data...our local MF market in Columbus, Ohio has appreciated at a year-over average of 21% in the 20 most productive zip codes for the last 5-years...the highest appreciating zip code grew at a rate of 64%...

How is your MF market price appreciation in other major metro areas?...Raleigh? Nashville? Indianapolis?....others?

My husband and I are looking to purchase a property in OBX early next year. I would love to keep in touch until then. Looking for a 3-4 bedroom when the time comes. We have visited but are not very familiar with the area so we would need someone knowledgeable to kind guide us a little. I really enjoyed reading this thread! Lots of great information :)

Hi @Annabelle Rozen and @Daniel Sager. You got some great replies here from @Greg Dickerson and others. I struggled with this issue myself. After years of doing single family and small multifamily flips and holds, I wanted to break into commercial multifamily for the same reasons you mentioned.  My breakthrough came when I hired a paid mentor/coach. I highly recommend that course of action. (I think Greg Dickerson does that in fact.) 

I ended up writing a book on the subject of upgrading to commercial multifamily. You can reach out to me for a PDF copy if you think it would help you in any way.  Good luck!   

@Greg Dickerson

Even with up to 30% down, banks still require a net worth that high? I knew NW was taken into consideration along with needing to have a certain amount liquid but being worth 1 million + having the cash for the DP AND reserves seems nuts. I am looking to break into multifamily commercial in about 5 years myself and I'll have the liquid + DP but will likely not be worth a million lol. Who would one go to for financing that would be more lenient? I'd want to do this without partners if possible.

Hello everyone,

My name is Jacob (please excuse the profile mismatch - I'm using my dad's BP Pro Account).

I have a goal to buy a small apartment complex by the end of the year and the first step I'm taking towards that is to start finding some emerging markets to target. I'm open really to anywhere in the United States.

I wanted to connect with any other investors to see if anyone is doing/has done a similar analysis to see if we can share resources and maybe even work together.

For some more information on the resources I've found so far:

Emerging Real Estate Markets by David Lindahl

The following videos also talk about market selection and research:

There are other resources I've found but for the sake of brevity I'll leave them out.

I've yet to start really digging deeper into particular markets, but hopefully will get to that soon.

Are there any resources (books/videos/articles/etc) that others would recommend? 

And I'd love to hear how others are doing similar analyses, if you don't mind sharing. 

Thanks in advance