All Forum Posts by: Denny Robert

Awesome deal. Is this your first in St Louis?

When I lived in my triplex my insurance agent covered my unit as owner occupied and the other two units as landlord. It was less expensive than an owner occupied policy.

@Samuel Glantz I lived in Tempe for 9 years. Bring some of that weather with you!

I want to BIG BOLD UNDERLINE SIZE 30 FONT @Max Householder's recommendation for Southern. That is the best fried chicken in the world. It wins my favorite food I found in 2018 award. I even went to Nashville twice and tried the original "Nashville hot chicken". Southern does it better. Tons of other good food as well. I do personally enjoy Imo's, and other St. Louis style pizzas. It's a love it or hate it thing and its worth trying if you've never had it. I would also add Icy's Plain and Fancy for best ice cream in the world. They make cocktail ice creams that are fun and delicious.

I think the City Museum is the coolest thing we have in St Louis even as an adult. I always bring visitors there with or without kids. They have a bar and live bands on some weekend nights I believe. There is nothing else in the world like it.

Regarding South City, your intended investment area, check out The Grove, South Grand by Tower Grove Park, Cherokee Street, The Hill, and Dogtown.

There are many REI groups throughout the month if you want to network, including the happy hour. What are your dates?

There is a whole lot of great property east of those tracks, and many areas I wouldn't hesitate to move my family into. I agree that most of west of of that line is great B and A class properties, there are still a ton of A, B, and C neighborhoods east of there.

@Peter Bankhead, define cheap buy for you. If you're thinking 2-4 unit multifamily most of those opportunities are going to be in the city rather than the county.

@Laura Alamery who do you recommend for project management in St. Louis?

BTW, I met a Dan Hillberry at SSIC who mentioned you.

Take a look at the post I just put up about Wash U and their development. They definitely have a hand in the West End, and I do believe it is an area that will change in the next decade. The biggest thing that could slow the tide is an economic shift.

I would love to hear experienced St. Louis investors and people who interested in the city weigh in on Wash U's Live Near Your Work Program (https://lnyw.wustl.edu) and all the investment they have done in the central corridor. 

Live Near Your Work Program:

• Wash U and Barnes Jewish Hospital offer $8500 in a forgivable loan to part time (at least 20-24 hrs) and full time employees for down payment and closing costs. Employees must live there for 5 years to keep the full benefit, and it is prorated by 20% every year until fully forgiven.
• In the neighborhoods north of Delmar $8500 would be enough downpayment to buy some of the nicest houses with 3% down.

Keller Williams Young Professionals hosted a lecture by Hank (Henry) Webber, executive vice chancellor and chief administrative officer at Washington University, Board Chair of Cortex Innovation Community and Invest STL, and Board member of the Arch to Park Collaborative.

Some points from his lecture:

• - St. Louis City population has hit it's bottom and is projected to grow fast.
  
  • 1940: 816k
  • 1950: 856k
  • 1960: 750k
  • 1970: 622k
  • 1980: 453k
  • 1990: 396k
  • 2000: 348k
  • 2010: 319k
  • 2016: 316k
• City average home prices are lower than the region, but he doesn't expect that to last too long.
• From 2000-2016 average income in the city is up 10%, primarily due to attracting college educated white millennials. MSA is down 1.3%
• Why Wash U focuses on neighborhood improvement:
  • Successful neighborhoods support the recruitment of students, faculty, and staff
  • Nearby neighborhoods are part of the way of life for the University community
  • Demonstrate the university’s commitment to meet the needs of St. Louis and improve neighborhoods

• Washington University Medical Center Redevelopment Corporation (WUMC) was formed in 1962 and stabilized Central West End and Forest Park Southeast (The Grove). in 2018 they expanded to include North Delmar neighborhoods.

Conclusions:

• Wage and cost of living data argues that St. Louis is very attractive place to live and should be an attractive place for firms to locate. We must as a region, promote St. Louis.
• The central corridor of the City is becoming a magnet for the white college educated millennial population. Need to build on momentum of job and residential growth.
• North City Initiatives/areas of promise: NGA, east Delmar Loop/Maker Art District, Invest STL, Wash U Live Near Your Work Program
• Need a downtown strategy for crime prevention, revitalization, and growth.
• Need a better ability to compete as a region.
• Recognize depth of equity challenge in St. Louis.
  • A few statistics:
    • South of Delmar, 9% of the land is vacant, north of Delmar 31% is vacant.
    • Median household income in the neighborhoods south of Delmar is $ 48,474, North of Delmar it is $28,023.
    • South of Delmar, 4.9% of all children live below the poverty line. North of Delmar, 51.5% of all children live below the poverty line.
    • In the neighborhoods immediately south of Delmar 18% of the population is African- American. In the neighborhoods immediately north of Delmar, 93% of the population is African American.

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My overarching takeaway:

- Near North St. Louis is very rough, but as I have been driving the neighborhoods and meeting people, I do keep meeting more and more college educated millennials who want to live near the Loop and CWE, but can't afford them or choose to live cheap. I met a young single blond girl who lives in a house north of Delmar with a group of friends because her share of the rent is something like $300/mo and she can ride her bike to CWE. I also know another millennial married couple that owns a new build in that area because they could afford it, and couldn't afford anything comparable without driving 30 minutes out from the city.

- St. Louis is known for cashflow investing in the REI community. Between Delmar and Page is probably one of the few areas in St. Louis where appreciation can be expected in the next decade while still getting great cashflow. The biggest obstacle to landlords is going to be vacancy while waiting for quality tenants.

- My wife and I are personally considering moving into that area, and I am networking with other real estate investors, agents, business owners, churches, local politicians, and others who are interested in developing this area.

- I have a 5500 sq ft 4 family with a 4 car garage under contract in this area for $10,000 to close. It needs $80k+ invested in it to rehab. These 3/2 units would rent for $900+. I'm considering closing on it myself and sitting on it until I can rehab.

- What are your thoughts?

- Have you seen these kinds of investments turn areas in other cities?

@Adam Hughes where you at? I grew up in Red Bud, IL and went to SIUE.

There are certainly deals to be had in IL, you just have to factor in higher taxes and some of the muni's have crazy occupancy permitting.

@Ben Kirchner there are a ton of great rentals St Louis metro area, both the Missouri and Illinois. Belleville is a good market that has some fair deals. Like Lee said, determine your strategy.

However I must say, St. Louis is generally a cashflow market, so I would aim for areas that capitalize that cashflow. The only areas where appreciation are more likely to happy are areas where people are moving... such as areas of the city that are gentrifying/have external factors such as jobs and incentives like Wash U's Live Near Your Work Program. I personally would recommend targeting cashflow properties in these areas that are most likely to turn.

5252 Page Ave, St Louis, MO 63113
PUBLIC PROPERTY PREVIEW DEC 17 4-6PM

Offered at: $19,900

• 5562 ft
• 4 Units
• 4 Car Garage
• Each unit is 3 bed 2 bath
• Property is vacant and requires full rehab
• Photos: https://drive.google.com/open?id=1--nYBg3HKzC75zg5LJU9X-CN2bmXFKOQ

If you're interested in acquiring this Purchase and Sales Agreement, please contact me right away.

Access or Contact Us: Please call or text (314) 478-4332 or email [email protected]

Why don't we list estimated repair costs, ARV, or price?

After repair value varies depending on the level and quality of rehab work. Are you rehabbing for a rental or for a flip? Repairs estimates vary as well. Are you going to do the work yourself or hire it out? What quality of materials are you going to use? Make your offer based on what you estimate your repair costs and ARV will be.

I am a principal party in a valid and assignable Purchase and Sales Agreement which allows me to purchase 5252-5254 Page Ave, St. Louis, MO. The decision has been made to offer this Purchase and Sales Agreement to another cash buyer so as to allow you the opportunity to buy this home.

How To Buy: These properties sell very fast and are on sold on a first come first serve basis, so if you're interested and would like to purchase this property.

How We Work With Realtors: Your commission is to be added to the wholesale price of the property being offered. Because these properties are at deep discount there is plenty of "spread" to add on a commission. All of our properties close at the title company listed on our purchase agreement so standard commission instructions can be faxed or emailed and paid at close of escrow.

Serious cash buyers only, closing to take place at Integrity Title and $2,500 non-refundable deposit upon acceptance.