All Forum Posts by: Whitney Hutten

@Chris LainoI would say that is high.  My of my rehabs are in KC (same size) and I barely crack $55K with a full rehab including foundation.  It will differ market to market AND time of year (this being the time of year most people start rehabbing), so definitely get other estimates.  Also, GC are going to take a mark-up.  Since this is mostly cosmetic, are you willing to coordinate your own subs and save probably 25-30%?

@Johnny Situ Congrats! I've taken a much similar path in the past 2 years. This year is making the leap from SFR to MF, and launching a business, and traveling my family. Keep up the inspiring work:)

Whitney

@Joel Owens That is a valid point. MF interests me. I'm looking to build a SFR portfolio to trade up into MF at a larger scale.

@Michael Knudsen thank you! I would love an intro!  

Thanks!  Not desperate... just trying to lock in the lowest rate possible for the longest time possible.  I would even entertain a 30yr AM 10/1 note (closing on 2 refis this week so this is my first experience with that type of loan).  Again, I have 1 lender currently that will do a 30yr fixed and 30yr 10/1, but the fees are just ridiculous.  

I've also looked at portfolio lending, but am not really sure if cross-collateralizing the portfolio makes sense if I want to continue to sell individual properties to maximize profits/returns.  Seems very difficult evaluate the true loan on a property that way... maybe I'm missing something too!

Any direction to specific lenders would be nice.  PM me if the forum won't allow for direct posting.  Thanks!

Hi! I'm looking to continue to scale my SFR portfolio and look to put a 30-year commercial note on my refinances. Would anyone know of a lender who can do that? I've explored local banks without success. I've found 1 lender to date that will do a 30-year commercial note, and the high rates are making the deals not that great anymore. Would love to understand how others are financing their rentals past the 20 conventional spots!

@Alex Kamunyo Congrats!  I have a sneaking suspicion I know exactly where that house is.   Great job with the rehab.  Did you run into any flooding issues from Harvey and how did you handle them?  I'm always curious how rehabbers mitigate homes like these.

Can't wait! 

Can't wait!

Regardless of whether you are sourcing your own deals or going with a TKP, you make your money on the purchase.  I started out the traditional route, but now I am growing much quicker in the TKP space due to the scalability of the model with having a full-time career and family (not to rent ratios are not ideal for leveraging capital where I live). 

The question was asked, how do you start finding a provider and deals... it's a funnel... and I feel the best way to find a great TKP is to network with members on BP... really network... comb the boards and find who is really having success with TKP.  Here's how I did it:

1. I started off researching 10 members and interviewed each member to understand how they got started in the space, what they looked for in a provider, what were their redflags, and maybe, just maybe they shared their source openly.  The education gained in those interviews and the network created is priceless to me.  As I grew my portfolio, these members also supported me in helping me look at numbers and find more deals!

2. Then you go and interview each provider, sort which have the product you want, get on their lists, and analyze deals... 95% will not meet your criteria or are over-priced... but you will have tons to look at and access to so many properties that aren't on the MLS (to me this is the best part of TKP).

3. Then "offer" on the deals (don't just agree to the price marked).  In many cases you can negotiate on a turnkey deal (the price and terms isn't necessarily set).  Be willing to walk away or hear "no".  I just closed on a deal today that I picked up 20% under appraised value, inspected beautifully, all because the provider needed cash for another deal ASAP.  

4. Do your due diligence.  Make sure you have an inspection and appraisal out in your contract.  If a TKP won't allow for this or wants it to be a "handshake" type of deal, I personally would not do business with them.  

4.  Just with any other real estate deal... be patient until the right deal comes.  Don't rush... don't succumb to the pressure to purchase.  

TKP isn't for everyone... and like with anything in life you can get scammed... but don't rule it out as a viable way to grow passive income and quickly!!!  

Thank you everyone.  Some great ideas!  

@Michael Plante our lease standard and does include a sales clause.  We do include a 24 hour notice clause too... so we will have to work with that.

@Deanna McCormick it looks like my tag from yesterday didn't work.  how exactly does a lease buyout work?  

We've settled on offering a percentage of the total sale of the home, and movie tickets for each open house (hoping to entice them that direction).