All Forum Posts by: Don Konipol

I’ve been a landlord for a number of years, and I’m exploring ways to expand my investing strategy beyond just owning rentals. Buying performing or non-performing notes directly from banks has really caught my attention.

For those who’ve done it, I’d love to hear your perspective on a few things:

• Which bank department typically handles note sales? (Special Assets, Loss Mitigation, Secondary Marketing?)

• Do banks maintain a list of available notes, or is it all relationship-driven?

• What’s the best way to approach a bank without looking like you’re just kicking tires?

• Are there common pitfalls to watch out for when starting out?

I’m not coming to this as a complete newbie to real estate...just someone who’s serious about learning this side of the business and making smart moves from the start.

If you’ve made your first note purchase, how did you find it, and what do you wish you’d done differently?

I would love this community's input on a slightly unusual real estate partnership. I’m considering a project in collaboration with my sister, who owns rural property outside of Columbus, Ohio, where she also runs a homesteading education non-profit.

I’m interested in funding the construction of a dwelling on that land, with the intent that it could be used to support her educational programming, generate income as a short-term rental, and eventually (10+ years) become a part-time residence for my partner and me.

While I have some experience with more conventional real estate investments, this venture has a very different purpose and structure, blending family partnership, nonprofit collaboration, and long-term planning. I have a number of questions about how best to approach this from a legal and operational standpoint, including ownership structures, liability considerations, use agreements, and any zoning or permitting concerns that might arise.

I welcome all thoughts, ideas, connections, etc, and have some specific questions around:

1. Ownership Structures:

● What are the various ownership structures we could consider (e.g., LLC, direct

ownership with a formal agreement, trust), and what are the pros and cons of each in

terms of liability protection, tax implications, and flexibility for future changes in use or

ownership?

● Given the blended purpose (non-profit support, rental income, future personal

residence), which ownership structure would best accommodate these diverse

objectives and potential long-term transitions?

● How can we ensure clear documentation of the financial investment and Tenderfoot

property contribution, regardless of the chosen structure?

2. Liability Considerations:

● What are the potential liability risks associated with operating a short-term rental and

supporting a non-profit on the same property?

● How can the chosen ownership structure mitigate these risks for both parties?

● What type of insurance coverage would be necessary to protect against potential

liabilities related to property use, guests, and the non-profit's activities?

3. Use Agreements and Operational Framework:

● What type of formal agreement would be needed between L+T (as land owner and non-

profit operator) and N+K (as funders and future part-time residents) to define roles,

responsibilities, and financial arrangements?

● How can we clearly delineate the usage of the dwelling for the non-profit's educational

programming versus short-term rental use?

● What mechanisms can be put in place to manage rental income, expenses, and profit

distribution?

● How would future changes in the dwelling's primary use (e.g., transition to part-time

personal residence) be documented and managed within this agreement?

4. Zoning and Permitting Concerns:

● What are the specific zoning regulations in Athens, Ohio, for rural properties regarding

residential construction, short-term rentals, and non-profit activities?

● Are there any special permits or approvals required for constructing a new dwelling on

agricultural or rural land?

● What are the requirements for operating a short-term rental in this area (e.g., licenses,

occupancy limits, safety regulations)?

● Are there any restrictions or considerations related to the non-profit's educational

programming occurring on the property?

5. Long-Term Planning and Exit Strategy:

● How can we build flexibility into the legal framework to accommodate the long-term goal

of the dwelling becoming a part-time residence in 10+ years?

● What considerations should be made if one party wishes to exit the partnership before

the 10-year mark, or if the non-profit's needs change significantly?

● How can the agreement address potential future disagreements or changes in

circumstances between family members?

Hey Don, 

 No, currently I only do development projects in the NH area. I post to inform, on opportunities in the southern New Hampshire area. As well, as attach like minded investors. There are viable, deals that would be great investment options for out of State investors. But, my focus on Rural projects, seems to be something a lot of people aren't aware of. 

I’ve been investing in real estate and practicing Brazilian Jiu Jitsu for about the same amount of time - nearly two decades. With both - I haven’t been as consistent as I would like - but I remain committed and my games' tend to grow in concentrated periods of intense effort and dedication. Each has sharpened (and humbled!) my ability to regulate emotions, apply strategic pressure, and protect my physical, mental, spiritual, and financial well-being. I am not black-belt level in either yet - but mastery is inevitable when one keeps showing up. 

Today’s flow touches on Seller Concessions: A technique that investors (of any degree) can utilize to incentivize investments into submission!

In real estate, seller concessions are often sold as a sweetener— extra cash from the seller to cover closing costs or repairs. But for leveraged investors, they’re not just a perk; they’re a weapon. Used correctly, they can improve cash flow, reduce capital outlay, and boost returns. Used poorly, they can quietly eat into your deal for decades.

What a Seller Concession Really Is - A seller concession is not “free money.” In most cases, it’s simply a price adjustment in disguise—one that your lender allows you to apply toward certain costs like closing fees, prepaid expenses, or interest rate buydowns. With most conventional mortgages the maximum seller concession is 2%, second homes can be 3%+ and primaries can be 6%+ (although cannot contribute to the actual down payment percentage).

If you’re financing the property, part of that concession is effectively rolled into your mortgage. Translation: you could be paying interest on it for the next 15–30 years. However - depending on how long investors are in a particular loan will factor into the recapture or recuperation 

The Good: Strategic Uses That Boost ROI - Think of seller concession BJJ as redirecting the seller's give into your financial gain.

Examples include:

• Rate Buydowns – Use the credit to permanently lower your interest rate or lock in a multi-year buydown, improving cash flow immediately.
• Revenue-Critical Repairs – Fund upgrades that directly impact booking rates and occupancy for STRs (hot tub, furniture, curb appeal).
• Preserve Cash Reserves – Cover closing costs with the concession so your capital stays in your pocket for emergencies or expansion.

The Bad: Illusion of a Better Deal - A $20,000 concession feels good—until you realize the seller simply padded the purchase price to make it happen. If that inflated value pushes you above market comps, you’re now overleveraged and your “deal” is already underwater.

For example on our most recent primary purchase even with our 2.5% concession the home still appraised for $25K more than our purchase price :) In the event the home does not appraise - parties would need to renegotiate terms or revise the concession. 

The Master Move: Anchor the Price, Then Negotiate Concessions

In martial arts, you use your opponent’s momentum against them. In real estate, you lock in a fair purchase price first, then negotiate a concession that actually serves your investment goals - or that is justified through inspections or required repairs or anticipated cots. This keeps your loan amount realistic (and capital requirements low) while extracting maximum value from the concession.

Seller concessions can make or break your ROI—especially for leveraged investors. They're a tool, not a trophy. Use them to strengthen your position, increase cash flow, or preserve liquidity. Increasingly sellers are more open supporting creative or collaborative solutions towards mutual acceptance and compromise towards closings.

@Don Konipol Great question! I am involved with the business side, as an investor focused agent based out of New Hampshire. Not yet involved with passive investor and active investor, however, I will become an active investor once I've saved up enough to purchase a house hack in the local area. Which category do you like the best?

I am just starting out and I've been looking at deals all night, and to be honest, like every deal I come across looks good to me, which is coming from somebody who's never done it before, so I'm looking for more information on what to look for in multi family homes that separate the good deals from the astronomical ones, 

Hi everyone,

My husband and I have had great success with our rental properties (we currently own two single-family rentals) and are now looking to branch into self-storage.

We plan to structure our first deal as a real estate syndication, where we will act as the sponsors/general partners—handling deal sourcing, financing, and ongoing management. Our target property is in the $500K–$1M range.

Although we’ve spent years researching and analyzing storage unit deals, we’ve never taken the next step to purchase one—until now. We will also be investing our own capital into the deal alongside our limited partners.

This will be our first time sponsoring a syndication, and we’re looking to connect with limited partners (passive investors) who are comfortable with smaller deals and new sponsors. We expect returns to come from both ongoing cash flow and a capital event (such as a refinance or sale).

For those of you who’ve raised capital for similar first-time or smaller syndications:

• What strategies have worked best to attract and build trust with LPs?

• Are there specific networking channels, events, or platforms you’ve found effective?

• Any common mistakes you’d recommend avoiding as first-time sponsors?

Thanks in advance for your insights and experiences!

— Katie