All Forum Posts by: Courtney Fricke

Welcome to investing in SELA, Bryan! I'm a local investor in the Slidell/St. tammany area and run the REIA that Dean mentioned. Best of luck in your ventures and feel free to reach out if I can help in any way!

Welcome to BP, @Josh Dean! There are a few local meet ups in the Baton Rouge area for real estate investors. Check out the meetup app or meetup . com to find one near you. Definitely great to connect with locals who are likeminded as well as a place to find local deals. Hope you enjoy the gold mind on this website! Best of luck from an investor in Slidell. 

Is this a property that is listed with a broker or is it direct with seller? If it is listed with a broker, I would contact a different commercial broker to ask them their opinion on the property. Ask them what the cap rate is in the area and see if this property compares well to that cap rate. Find out if that purchase price is a good ROI. I'm not very familiar with commercial properties but that's where I would start. Find a local expert, professional or non, and learn from them. Maybe there are some commercial investors in your area that you can reach out to? Maybe at your local REIA?

As a fellow Louisianan, I wish you the best of luck!  

Thanks, @Chris Verdigets! If anything, whether I can close this deal for my own portfolio, wholesale to another investor as a cash purchase or at worst, if I lose it, still a ton of lessons learned from starting to offer for owner financing. Talked to CPA today. Will contact seller about. 

@Marshall Easlick Yes, I talked with two friends who are lenders and we were discussing the possibility of 6.5/7% for the refinance. It still cashflows day on the refinance. The new interest rate and the balloon are the two new developments. Also, the insurance policy shouldn't be increasing. Talked to this insurance agent. He thought he just had a liability policy but he has a decent full landlord policy in place. So that's not going to increase on me from day one. Overall, I'm still hoping we can sign on the dotted line. Just waiting on his CPA to return my call to advise him on the deal. 

Update: Both of our CPA's have challenged this deal. Working on final negotiations today. Last offer submitted this morning was:
Purchase Price: $85K ($120K comps)
Down Deposit: $3K
$82K financed - 25 years term, 5 years balloone
3.25% Int (no interest causes issues with IRS)
Monthly note: $387.61
Early 2023 REFI to pay off principal ~ $69,400.

It's not necessarily low balling. It's figured returns based on current condition and cash deployed. I wholesale in the St. Tammany area. I tell my sellers often that I may not be the best option for them and that I only add value to the situation if I'm solving a problem (condition, quickness, cash, convenience, etc) because someone living in the property will most likely pay more than me all day long. It's a personal decision for them and a business one for me. Once I pitch it to them like that, I separate the motivated ones from the non-motivated ones and save all of us the time wasted if their just trying to fish for offers.

Jason Clarke yes, great point. I am considering that. Working on some inspections now to confirm if the purchase price is fair even at the terms.

William Nelson I will check that link out and send it to my CPA. I've spoken with both my CPA and the seller's CPA. But since it isn't finalized, I'll ask again. I know imputed interest was a question of concern in the beginning too.

Robert Leonard Thanks for the input! Flood zone C. Insurance is currently just liability. Not actual landlord policy. Talking with insurance company tomorrow. Although these are my first rentals and owner finance deal, they aren't my first property purchases. My Main concern is with the cashflow and scenario rather than the actual properties.