All Forum Posts by: Chad Shultz

Out-of-the-area Investors, be cautious. Short term rentals are not allowed in Volusia County and only in very limited areas of Ormond Beach. If you can find a legal property, an STR can be lucrative, but be sure to do your homework. I have seen many people burned AFTER they buy a property, because they assume.

Sarah B.,

The allowed use for STR in Daytona is crazy. They strictly enforce against those who attempt to run a STR in any area where it is not allowed. To that end, there are several places where you will find STR allowed on one side of a street, but not on the other. It is best to get to the source. I have the Daytona STR maps, given to me directly from the City Zoning Dept. If you want to connect with me, so we can exchange contact info, I can email them to you. I don't know of a way to put them in a thread here.

Rob,

I am just in the Daytona area, so not too far.

Hey Rob - Welcome to BP and the investor space! I am a bit south of you, but if you want to take a "day trip" down and meet up, I would be happy to chat. I am an active agent, but also active flipper, investor, wholesaler, etc., etc. I can walk you through several projects currently in progress at different stages and answer questions, etc. I am happy to have you come and "get your hands dirty", but it may be too much of a drive for frequency and you can likely find someone closer to you. I am the VP of the largest non-profit REIA in the USA currently. I can likely help you in one way or another. Feel free to reach out.

Has anyone mentioned that the Federal Government does not recognize single member LLCs and they actually give you much less protection that you think? Many courts will not recognize a single member LLC as any kind of asset protection either, because it is only protecting you. Depending on your state, you might consider a Land Trust. They are much easier to work with and they are not required to file tax returns. Everything goes on your personal return. You get much more protection.

Ronnie,

Yes, there are a few title companies who can help in the Volusia area. I don't know of a company in Volusia specifically, but RTR is okay, Southeast Professional Title, and Equity Title, LLC are all very investor friendly and can close properties in Volusia.

Nicholas - As an active local, hands-on, investor and licensed Realtor in the Daytona area, here's my take:  People generally watch too much television.  With so many home related shows out there, it is like a modern day gold rush of sorts.  The other posters have given some excellent points, like info about the State of FL during and post COVID, etc.  These are all contributing factors, but overall it is more just a new type of "gold fever".  Many so called "investors", especially from out of the area, see opportunities being had and they don't want to miss out.  Subsequently, many will jump in the deep end of the pool with their fingers crossed, hoping they float and things turn out profitable.  This could help explain the recent surge of properties in your inbox.  Those "investors" who pulled the trigger without aiming, or those who were bamboozled by dishonest "wholesalers" are now trying to get back whatever they can before the market slows to the point they may have a vacant property.

If you take the time to understand a property and the potential, making sure to buy it right, you should set yourself up for success regardless of what your end game is.  Don't buy a property because you need a property.  Buy one because it is a good deal for you.

I agree with Paul about the concrete block vs. wood example.  I purchase both, usually as flips, but won't generally purchase anything wood in a flood zone.  On the topic of flood zones, they bring more risk, but can also bring more return.  If you are planning to hold as a LTR, a flood zone will generally give you a better opportunity to buy the same house for less money, raising your monthly net.  It may require flood insurance, but the renter pays that for you.  There are plenty of flood zone areas that are lower risk zones, allowing you to use calculated risk to your advantage.

Feel free to message or connect.  If you are ever in the area, I would be happy to show you some of my personal projects and answer questions, so you can get a better feel for the area through the experience(s) of an actual local investor.

Cheers.

Thank you for the info @Rick H. I figured each state would be different and Calif is always on it's own playing field.

@Joe S. I did not realize BP cut off the rest of my back story.  I have tried to update the post, but BP does not allow changes to the original, so I am not certain how it will display.  If you want to read the whole story easily, I also posted it in my profile deals, so you can review it there.  Just click on my profile and look for the same house pic to find it easily.  I think it is second or third from the top.

Investment Info:

Single-family residence other investment.

** Foreclosure Overage Recovery ** - This one was a bit different.

What made you interested in investing in this type of deal?

I had met these people when they were going through Probate and wanted to sell the property. The big problem for them was they had a reverse mortgage on the property, which had a balance above what the property was worth to an investor. We tried to help them sell, but it would not be. About a year or more later, they went through a foreclosure by their HOA. An uneducated person bought the property at the HOA foreclosure for about $180k+. After paying off the HOA lien, there was $171k left w

How did you find this deal and how did you negotiate it?

I had developed a relationship with the property owners during an initial attempt at helping them with probate.

How did you finance this deal?

No money out of pocket and no money up front.

Investment Info:

Single-family residence other investment.

** Foreclosure Overage Recovery ** - This one was a bit different. I had met these people when they were going through Probate and wanted to sell the property. The big problem for them was they had a reverse mortgage on the property, which had a balance above what the property was worth to an investor. We tried to help them sell, but it would not be. About a year or more later, they went through a foreclosure by their HOA. An uneducated person bought the property at the HOA foreclosure for about $180k+. After paying off the HOA lien, there was $171k left which was available for the probate family. The first mortgage had never foreclosed and the first mortgage holder did not go after the overage from the HOA foreclosure. I helped these folks recover the $170k+ from the court. The buyer of the HOA lien had to fight against the first position mortgage holder who started a foreclosure after they bought the HOA lien. I was able to make about $19k as a fee for the recovery. The person who bought the HOA lien did a $100K+- renovation and had to bring money to the closing table because of the first position mortgage. My clients were very happy and the buyer... no so much. This should tell folks to do their research before buying foreclosures at auction. You need to know what you are bidding on.

How did you find this deal and how did you negotiate it?

I had developed a relationship with the property owners during an initial attempt at helping them with probate.

How did you finance this deal?

No money out of pocket and no money up front.