All Forum Posts by: Scott E.

Google "hard money lender near me" and that should get you through the rehab.

Then when you're done, if you are holding this as a rental, google "DSCR lender near me"

The answer for most people who are in your situation is simple - You're priced too high.

But since you have what sounds like a very niche property, there could be something else at play. Selling a property just comes down to supply and demand. If the supply outweighs the demand, you usually need to drop your price to be competitive.

In your situation though, if there is no demand (I'm talking literally no demand, not 1 buyer in town), then price might actually not be the issue. You might just need to wait until that 1 buyer comes along.

Selling something like this is going to require just the right realtor with just the right marketing plan. Have you hired the right realtor for the job?

What type of partnership agreements did you enter? - Huh
What type of real estate strategies did you pursue - Luxury flip
What was the corporate structure? - Set up an LLC
What challenges have you faced/do you still face? How were they resolved? - A luxury flip was really tough. There were 4 partners on this deal (including myself). And even though we had an architect and a designer, as always there were still a million floor plan and design decisions that needed to be made. It was tough getting all 4 partners on board for all of these decisions. Thankfully 2 of the 4 ended up becoming more "silent" partners and they let the remaining 2 take the reigns.
What are the legal and tax implications? - We had an attorney handle all of the legal stuff. He put together a pretty thorough contract that looked good to all of us. When it came time to pay taxes, we just had our CPA's handle that. Each partner made $100k on this deal. Pretty clean.
Other than money, what did other partners bring to the table and how were roles allocated? -Everybody contributed money. 2 of the partners were licensed contractors. The other 2 found and funded the deal.
How do you protect your interests? - The contract
Were you ever sued by a partner, by others or did you sue a partner? - Yes
When one partner decided to withdraw from the partnership, how was this addressed? - Since this was a flip this just all happened when the deal sold.
And finally, for partnerships that failed what caused it to fail? - It didn't fail during the project. But the failure that happened after closing and was related to warranty work.

Yeah those chat gpt forum posts are sooo obvious. I always laugh when I see one (then report it of course).

I've used it to help write copy for my website and newsletters. But the keyword is help me write copy. It's not perfect. It needs human intervention still. And again if you just copy/paste, it looks way too much like chatgpt wrote it.

Man, I don't know if anybody is going to come up with a better response than @Bryce Jamison. He nailed it.

I'll just add that my first deal was a house hack (about 12 years ago). I always just had single roommates. And even with singles there were a lot of challenges with having roommates. Noise, cleanliness, differing schedules, having company over, etc. I got by and my roommates paid for almost all of my mortgage. So no complaints, but it wasn't a walk in the park either.

Just keep this in mind. It gets tough living with other people, no matter how close you are with them now. And I'd imagine a couple with a dog will only amplify these challenges.

Just googled 'hard money lender Charleston, SC' and quite a few options showed up. This company called 'Coastal Equity Group' looks good. Great reviews.

I don't have experience owning a hostel so just take my post with a grain of salt. But figured I'd get the conversation going.

Do you have other work obligations at this time?

If not, I would plan on spending the next couple months commuting to this place at a minimum 8-5 M-F to spend time with the current 'manager' and learn everything you can about the intricacies of this operation. An hour commute is annoying. But not unreasonable to make daily for a few months.

It's definitely ok to put trust and responsibility in a manager to run almost any business. But in my opinion, it's important that you (the owner) knows everything there is to know about the business. That is the only way you can be an effective manager to your manager.

When you say SFR what are you referring to? Single family residence? Single family rental?

If you're talking about a single family long term rental, then even if you self manage that is very little time commitment.

If we're talking a single family short term rental that you self manage, that is going to be much more time intensive. And it also will depend on how much you outsource. Will you be cleaning the unit yourself, or hiring a cleaner? Will you be the handyman, or will you outsource? Will you be restocking stuff like coffee and toilet paper, or will your cleaner be doing that?

If you're looking for actual numbers here are some ballparks:

-Long term rental, self managed: 1 hour per week

-Long term rental, property manager: 2 hours per month

-Short term rental, self managed: 6-10 hours per week

-Short term rental, property manager: 5 hours per month

What is the question?

Assuming your construction numbers are accurate and the comps support your ARV, a hard money lender should fund 70% of the purchase and 100% of the rehab on this deal.