All Forum Posts by: Chip Jetton

This post is a request on several levels: 1) I have an investor client that needs to purchase ~$2.0M of RE (residential and small MF, non-commercial) prior to year end.  He has approx $625k cash with which to do that with, so financing a large chunk. Anyone have a few properties they're looking to unload? I'm in Charlotte, NC so prefer here but posting to all locations b/c I'm curious on thoughts for the next question... 2) With a financed transaction how are you finding properties that will be in the black? It would seem that you'd have to buy at a steep discount to market to have a shot at the deal penciling out; 3) Any other thoughts/ideas on how to sell this guy $2M by end of year (he wants the tax write off and is planning to use cost segregation with the properties)?  Any and all ideas/thoughts welcomed, thanks!

Overall, I tell everyone to be long Charlotte real estate all day long.  I'm a CLT native and realtor here and I've talked myself out of more than one listing this year (but truly believe that is best for my clients).  Each situation is different though.  Exact location may sway my decision but if you didn't intend for it to be hugely cash flow positive, as long as you're in the black and don't need the money right now, I'd hang on to it. In my experience with condo rentals in this market I've noticed that even $100 makes a big difference in monthly rent.  So, if you were priced nearly $400 higher than neighboring units that weren't renting, then rent was most likely listed too high.  I also believe we're still very short on rentals (as well as for sale inventory), so if priced right, it should move.  People are willing to pay up for those fancy complexes (mostly apartments) with really high rents, but there's an equal number of people that just want something that is a nice roof over their head, in a good area, where they aren't paying for every little add-on...definitely some other good comments in this thread as well.  

If you're going to cold call an agent (warm lead/referral is always best) make it value added (unique loan products are best - HELOCs and construction loans are things that seem to be more rare in the lending community for most brokers; offer to host an event with (or for) them (open house for agents or the public is most common but you could do a first time buyer happy hour or something like that too); helpful rate information; information on the opportunity cost of waiting to buy in this ever increasing market is always good as well. At the end of the day, it takes some unique rate or loan product to really get my attention and certainly a warm lead b/c we do get so many cold calls from loan officers.  Especially now that the refi business has dried up.