All Forum Posts by: Bryce Y.

I'll defer to the judgement of more experienced syndicators, but it looks okay to me.  As a potential investor, I would want to know how you are getting your deals (don't have to answer that here obviously), how much equity capture you are getting at purchase, and how you arrive at the 320k sales price.

Maybe I am the one confused.  Are you buying them for $4m, then selling them for $8m, leaving $4m of profit?   The proceeds from the sale would be applied to returning investor capital first.  Once everything is returned only then would you split.

 You are essentially looking for 100% financing (no skin in the game) and giving an 8% pref + 65/35 split.  Not unreasonable if you have experience.  The first problem is your expenses are way understated.  You will have other expenses besides taxes and insurance.  Also the 65/35 split is for profits only, not "equity/profits".  THink about it from the investor's standpoint:  they would put up $4m, get 8% pref, then when you sell for $4m, they take a 35% haircut?!?  Realistically if you sell for $4m, they get $4m and you get 0.

Good discussion, I'm learning a lot!  I'm still trying to wrap my head around getting a DIL in a different name/entity than the note holder.  Apparently it is legal and done all the time as evidenced by this thread but it just seems weird to me.  I need to think about it more...

Here is how I see it, correct me if I'm wrong.  The ultimate goal is to get clear title. After buying the 1st lien note you can either foreclose to wipe out junior liens or do this DIL strategy.  The advantage of the DIL strategy is it speeds up and allows you to control the foreclosure process since you are foreclosing on yourself.  But either way you will foreclose.  I'm confused when you say Acquiring the DIL in another entity name preserves your ability to foreclose on the collateral in the event that you later discover that you need to perfect title via foreclosure.  Why would you get the DIL and not foreclose?

Very nice! The only small criticism I have is the flush mount light fixtures.  That, plus the lack of ceiling fans might turn off some buyers.  

I'm also curious about this but in the case of an investor using the loan proceeds to go to Hawaii, typically this is the reason HML's only release rehab $ on completed work. The investor must use his own funds to complete the work first, so technically the loan amounts are a reimbursement.

No legal advice

The exterior looks really nice.  I would give it another week or so and adjust accordingly.  5 days isn't much but then again I'd expect at least a couple applicants out of 10 showings.  

It's hard to tell from the pics but the stairs don't look too bad. I have a 4-plex that looks similar and the tenants have no problem getting beds up there.

Nice job! I'm curious as to why you went with such a high end kitchen remodel (granite, ss)?  Generally I'd think at those price points it's not the norm (?) but I don't know the market up there too well.

Also I don't mean to toot my own horn but here's what I posted in your old thread  http://www.biggerpockets.com/forums/432/topics/107712-what-to-do-with-small-three-bedroom-units: 

Taking a quick look at lease comps I think your estimate of 900-950 may be a bit aggressive. 

The comps I saw were on Legends Dr. That subdivision it seems was built in 05-06. A typical 3/2.5/2 rents for around $1250. Yours being a small 3/1/0 or 2/1/0 on a main road, I would use 750-800 for analysis purposes. If you can get more, great, but there aren't (m)any like comps so I'd be conservative.

How long has it been on market?  Your pm seems to be pricing it at the very top of the market.  You probably eventually could get it rented but it might take a while and you may be faced with turnover in a year.  I would drop it to 850-875 and try to get some cash coming in asap.  

You would be a pretty good candidate. Most HMLs look primarily at the quality of the deal first and foremost, your experience/track record, and liquidity. As a general rule about 20% of the loan amount in cash. This is to complete the rehab and contingency if the deal goes south. Your other free and clear properties should definitely help as the HML could use those as additional collateral.

Did you actually verify the $3370 amount?