All Forum Posts by: Cliff Benner

Hmm I have seen these types of properties on LoopNet, Crexi, and BizbuySell before. There is a Campground Marketplace listing that could work too.

Do they have a set of financials they could put together to streamline the process and send it to buyers once an NDA is signed? Something that takes the financials and removes Add Back Transactions to get right to SDE that buyers could take to lender?

Also, have they worked with a Local Bank in the past? Maybe they can ask them to analyze the business and that bank can be a preferred lender they can send Buyers to right away. Then set up a Word Doc with this email created already so it's just copy and paste.

I recommend Relay to all my clients. Most of them only have a few rentals and with Relay they can have 18 checking and 2 savings accounts so it is easy to set up each property on its own bank account, each flip on its own bank account, and have an operating account for overhead or to disburse funds to from other accounts.

Then you can set up auto transfers so if you receive rent, you can tell 10% to go to Savings for Capex/Maintenance, and 20% for Operations, then leave the rest in that account for the mortgage. Plus it gives some easy Accountant Access options, which makes my life and my clients' easier for when I do Bank Recs for them.

I know of some local groups that have some events I plan to start attending, but I love the online community and forums of BP and am hoping to find something similar.

Does anyone know of any or are apart of other communities they would recommend looking into?

Thanks!

@Ivette Raygoza I think it is a good market to start in for Cash Flow and OOS. 

That is what I did, I have 1 unit there, and started off by doing everything wrong(listen to episode #610 for all the lessons I learned and wish I knew, hopefully it helps you avoid what happened to me) but have a good Realtor(@Tyler Everidge) who answers my questions and provides me with proofs when I ask for them. He replaced my first realtor who was not on my side and caused me a lot of problems. After my first experience, I learned about the area and verified info Tyler has showed me to make sure I am using a realtor who is more on my side. I have not used him to buy real estate yet, just due to my own business taking most of my time, but plan to later this year or early next year. 

For PM i use BridgeStream, they have been pretty good about managing my rental since I replaced my first one who did poorly. They have a good tenant process with the lease and vetting out good candidates. 

I used a mortgage broker,(@Nick Belsky) for my refinance and he did amazing at helping me through the process.

One of my next task is to find an insurance broker for OH and add them to my team to take over the insurance part so I don't have to worry about it, currently I use State Farm and don't have an opinion on them. 

I do my own Accounting since I own that type of business, but a REI Accountant can really help you understand the financials, how a cost seg would help, and if you Tax Accountant knows what they are doing.

Feel free to reach out with anymore questions!

 With a unique property like that, you could accelerate the loan payoff, and seller finance it when you go to sell to get the maximum. 

 I would doing everything the same regardless of family, friend, or stranger. It helps to prove to those that this is a contract and disregards relationships. 

For instance, you contact says 12 months, you ESTIMATED 6 months, but now its month 8 and wrapping up but Thanksgivings weird because Uncle BOB keeps saying you promised 6 months and you are just stealing from him, but he agreed to 12 months and you are still able to keep that problem because you extended that out. 

 Was your initial intent to flip it and sell it within that 16 months? I have wondered how that works with businesses with getting paid during the time and the consequences of the gain when there is a lack of real estate to offset it. 

I see these for sale often, usually a smaller mom and pop style one. I am sure most go in a creative situation since most relies on repeat customers and a few have that reoccurring revenue that lenders love seeing. 

I was just wondering about this for one of my clients, great topic though.

Hey! 

My assumption would be that you would have to update the property to meet Commercial Zoning codes and file for USE permits that are commercial as well.

Might be worth a call to the Zoning and planning agency in the area to see what it would take and the application process for it. Then you have an idea of what it would take and timeline just for their portion.