All Forum Posts by: Eric Marofske

One idea is to view some units in the market that are priced at the rate you are targeting. This way you can see what the competition is offering and how it compares to the current condition of your unit.

It is hard to say whether renting it out after a year or two would be a good idea without knowing how the property looks from an investment standpoint.   Have you ran any of the numbers?

Condo investing presents some unique risks, including the presence of an HOA. There are some great posts on BP on this subject that are worth checking out before jumping in.

There is definitely opportunity to get creative when financing/funding a deal.  A common equity structure is to offer a fixed preferred return with a split of excess CF.  Generally, you would look to give up as little as possible while still providing a return that is acceptable to investors.   If the numbers don't make sense on yours and the investors' side, then the deal won't move forward.

Regarding a seller carry, the terms in question will be the loan amount, rate, term and amortization period, each of which is negotiable.  There's no standard here and, again, will depend on finding a balance between what works for both you and the seller.  

@Yusef Laboo,

If the deal makes sense, you might consider partnering with an experienced or accredited investor that is willing to sponsor the deal/bring the required capital to the table.  It also helps if you are able to add some further value (PM, rehab, etc) to the project. 

While you might need to sacrifice most of the upside on the first few deals, it certainly seems better than never getting started!

@Michael Rogers,

Congrats and good luck going forward!  I am have a similar background (CPA with an audit focus that recently transitioned to full time RE investing).  Shoot me a DM if you'd like to connect!  

@Scott Zockoll,

To expand on Ruth's suggestion, you can search for properties using Zillow (or similar) in your target market, and start by contacting a few of the listing agents. A broker should be able to set you up with a daily email feed of newly listed properties from the MLS that fit your given investment criteria (e.g. price, location, property type). Reviewing & tracking these listings can help you get a sense of the market.

How much work does the property need?  It sounds like you want a GC that can source, coordinate, and oversee the work of each sub.

@Mahonri Bussey,

I'd be happy to take a look at what you have put together and offer some feedback.  Feel free to shoot me a PM if interested!