All Forum Posts by: Cody Elliott

Hi @Michael Ealy

Wow thats one crazy Experience you had there! But it sounds like it worked out pretty good.

I definitely agree, Cash Reserves can Make you or Break you. I have access to a a great Private lender, so I guess I have that going for me.

I've looked for Similar deals in the area, but inventory is extremely limited, and most Deals I've researched don't show the Sales price/cap rate without being a member or paying a fee.

I think if the Owner is Willing to Price it based on the Income its Producing Now, then it should work out.

Hi Greg,

Yeah I think there's a lot of opportunity with the Rents. And I agree, r.u.b.s would definitely get the expenses down and add some value. I'm very interested to see what the Owner has to say about Price. I'd like to have a Number in mind going in to negotiation.. But with all the work needed and the lack of other Info, I may have to just wait and see what # the Owner throws out there first. I'll update the thread after speaking with him, and let you know how it goes.

@Joel Owens

Hey guys, I recently came across a 12-Unit Multifamily "Deal" (using that term lightly) and I wanted to give you all of the Info and see what you guys think its Worth. Or if its worth Pursuing. Its in an A-Class area.

This would be a Long Term Buy and Hold. My plan would be to get Conventional Financing with a Rehab Loan, and Refinance my Cash Out (I have the Cash for up to a $200,000 Down Payment). Also considering, using a strategy from the BP Podcast, Depositing $100,000 into a CD at the Financing Bank, as a means to negotiate better Terms, like a longer Fixed Term, or a Higher LTV%, also allowing me to Borrow against the CD.

The Owner is 70, and has owned the Property for 20 Years, and has a history of lowering rents instead of doing deferred maintenance.

**All of this Info has been gathered before approaching the Owner**

Property Info:

-Built in 1940's

-12 Unit Building 6-(2Br/1Ba) 6-(1Br/1Ba)

-Tax Value $1,300,000

-Annual Taxes $16,000

-Current Rents are ($850 for 2/1) *couldn't find info on (1/1) but it is well below market Value

-1920's Renovated Building in the area Rents for ($1,245 2/1) and ($1,045 1/1)

-No Property Manager (owner managed)

-Owner Pays Water and Utilities

-All surrounding Apts. pay for Water/Sewer Only

-(A Class Area) with Mixed Use Buildings and Student Living

-Walking Distance to University

-2 Units currently Not Rented

Rehab/Needs -(from what I can see)

-New HVAC, has Radiator Heating and Window Units

-Living Room Floor (Sinking in) on Top Floor Unit 

-Cracks in Interior Walls/Exterior Brick

-New Roof (I'm assuming) Large leak in Top Floor Unit

-New Fire Escape Staircases 

-Updated Electrical

-Updated Plumbing (I'm assuming) built in 1940's

-Interior Updating

I know its a lot of Work, but It's in a great area, and there is a ton of room for Value Add.

Seeing it broken down like that financially, definitely gives me a better Persepctive on how to move forward, thanks Joe!

Hey guys, I'm starting a Direct Mail campaign, and I have a cpuple Questions about structuring a partnership. 

My plan is to start sending out a large amount of Direct Mail and use Michael Quarles answering service to filter leads.

I am by no means a master negotiater... So I was thinking I would attempt to close the first few deals myself as a proof of concept, and eventually bring on an experienced Closer to help me scale the Business. 

I have a friend from college that is an amazing Salesmen and also has extensive experience in Rehabbing, that would be a perfect fit. 

In this scenario I would be putting up All of the money and taking on All the risk. So how should I approach bringing him on? I dont want to give up a lot of equity right out of the gate.. But bringing on someone with these skills could be an integral part to my business.

Thanks for all the feedback guys, really excited to get this thing in gear. Ive been listening to all the podcasts and will be attending my first local Meet up tomorrow!

Been looking for a local meet up for a while now without the "gurus" and pitching. Definitely count me in!

Hi my name is Cody, I am new investor looking to acquire properties in the Raleigh North Carolina area, for Fix and Flip.  I'd like to eventually build a portfolio of rental properties and become a full time Real Estate Investor within the next year or two.