All Forum Posts by: David Slack

Thank you for that very valuable insight Harvey. 

Thank you Greg.   

I have owned some single family rentals before. (Built new by my company) I sold them about 10 years ago.  I am wanting to acquire rentals again.   I am looking at building some units but the numbers are not favorable right now in my market, at least. I was just looking at other options.   

I am pondering getting into Section 8 rentals.  I am not sure this is the right time due to the cuts that the new administration is making across the board.  I have one question based upon past performance, at least.  Does the government really pay on time?  I have seen Section 8 "gurus" who boast about collection all of their rent money like clockwork from the government every month.  I have also heard horror stories about collecting the same money. If any of you out there either own or manages Section 8 rentals, can you please speak to this?  Thank you!

Hello, I am late to the party here, however I might be able to help with your double close if it meets our terms.  

Hello Sandra,

Thank you for the very detailed information about Western Tennessee!  It appears as though there are some terrific opportunities in that area.  

Investment Info:

Condo other investment.

Cash invested: $10,000
Sale price: $239,000

This condo was built as a new construction unit. The unit was used as a model in a local parade of homes event in June of 2008. I was unable to sell it to the rapidly declining market conditions in 2008. I ended up offering it as a lease with an option to buy. The property was leased in November of 2008 and it was sold and closed in May of 2009.

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

The deal was born from necessity.

How did you finance this deal?

Commercial Portfolio Loan

How did you add value to the deal?

I put the potential profit from the construction side into the deal.

What was the outcome?

The property was able to be sold in a very poor real estate environment.

Lessons learned? Challenges?

Don't build too many spec homes. Altering my expected outcome on the fly, in an unknown market condition. This also taught me a little bit about creative finance.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

This unit was listed with a local agent.

Investment Info:

Condo other investment.

Purchase price: $140,000
Cash invested: $5,000
Sale price: $205,000

I built a new construction condo unit and did a lease with an option to buy. The customer eventually purchased the condo as intended.

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

It was born from necessity. I was building spec duplex condos and when the market turned in 2008 I switched several of the units to this business model for survival.

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

I had to negotiate with my existing construction lender to get then to allow me to use the in place construction funding to get the property to cash flow so I could meet my obligations.

How did you finance this deal?

Portfolio loan.

How did you add value to the deal?

My potential profit that would have been in the job was converted to equity. I managed the properties myself to keep the expenses down.

What was the outcome?

The customer successfully purchased the unit from me in 2009.

Lessons learned? Challenges?

The lesson learned was that I took a situation that went against me suddenly, altered the terms and turned a negative into a positive!