All Forum Posts by: Don Konipol

I’m currently under contract on a home in Texas, and the final documents the lender requires are a tenant agreement and proof of the security deposit and first month’s rent for my current home, which I plan to keep.

The property manager I’m working with will use my home to house homeless veterans and senior citizens in a transitional setting, so it won’t be a standard rental. The PM is guaranteeing rent payments to me, but the lender won’t accept the contract as it’s written. I can add a statement clarifying that the payments are guaranteed regardless of occupancy, but I’m unsure how to handle the receipt for the deposit and first month’s rent in this nontraditional arrangement. The PM is not willing to provide any advance payments to me.

I do have a real estate LLC, and I want to make sure everything is done properly. This is the last hurdle before closing, which I'm hoping to do in the first week of August.

If anyone has been through something similar or has advice, I’d truly appreciate your insight.

For context, this purchase is just an upgrade, so I can walk away if needed, but I’d prefer to move forward the right way. Thanks in advance.

These national "property managers" (using that term loosely) are all very similar. They offer deceptively cheap management fees, and fund themselves through very high "add on" fees that they do not share with the client. These fees act to suppress the rents, because the grand total still needs to be something palatable to Joe Sixpack. The last Vacasa deal I looked at, the owner was paying them over 40 percent when taking into account all of the junk fees, not including suppressed rents.

And they have zero ability to actually manage properties, because they aren't on site. The best they can do is keep a short list of local housekeepers and handymen and call them in a pinch.  

Wholesaling takes a level of talent and negotiation skill that many lack. You have to be honest with yourself about your ability 

Don - Any thoughts on scaling/growing that you can share? In particular, using creative financing, other people's money, JV/partnering, only using your own capital, etc... that you can pass along with your experience?

@Don Konipol, just curious:

Are these numbers all-in numbers, including sale projections averaged over the hold?
Are they average over a hold period or, I am guessing, your projected return rate once a deal is stabilized?

Nice work! What was your lease up strategy? 

Out of curiousoty, did you have 9/10 tenants with leases expiring right around COVID? 

As a direct PML in the true sense. We dont do any deals with brokers or take any referrals from brokers I self generate all my clients.. However we have a very narrow niche that we work in and are only looking for those that can do some volume in the BRRR or fix flip space. We dont work with folks that are going to do one or two deals then be gone.

And like Don says above is so true most borrowers starting out go through the progression he states so by the time they realize either they dont have enough capital or experience or the deals are not in the main stream lender buy box, our typical scenario is we get a call on Monday in a panic  I am going to lose this deal if I don't close by Friday :) And that is my specialty and more complicated scenarios like foreclosures and sub markets the big lenders wont work in. etc etc. But the majority of my clients come to me by referrals  Title companies RE Brokers word of mouth type referrals not referrals we have to pay for or add to the deal to make the loan more costly for the borrower we garner those fee's:)

Recently been promoted to store manager at a major flooring store just North of Houston. This may be  a long shot, but would love to perhaps partner with, work out a deal with someone that does flips in my area. I could offer great deals on flooring for anyone looking at saving on a major portion of a remodel.