All Forum Posts by: Katherine Wiltse

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $375,000
Cash invested: $150,000

I have become an all-in-one real estate agent/construction manager/and (while the asset is being stabilized) property manager. This deal is for a client and we are just wrapping up. The numbers should be $550,000 with purchase price and rehab. This is for a 20 unit motel that we converted into long term apartments. Once fully occupied we will get a commercial appraisal and BRRRR. I think it will get a commercial appraisal at 1 mil at the least. Probably more like 1.2 milI. Its a sweet one.

What made you interested in investing in this type of deal?

The numbers!!!

How did you find this deal and how did you negotiate it?

I am a real estate agent, with an investor mindset and always have my eye out for deals. I wanted to buy this one myself, but couldn't scrape it together for the down. Instead, I am knocking it out of the park for my client.

How did you finance this deal?

My client bought the deal cash, but he is going to BRRRR once we get a commercial appraisal. He had never heard of this strategy and it took a few rounds of explaining, before he totally understood. Then his eyes got wide as saucers and his grin ear to ear.

How did you add value to the deal?

I literally have taken care of everything. Even negotiating a zoning change for a section of the property. I have truly handled every detail of this deal.

What was the outcome?

I am trying to figure out if it will be a homerun or a grand slam? I don't have enough experience to know. I just know it is a good one. I think conversion is a real sweet spot right now.

Lessons learned? Challenges?

Oh my. Fire people clean and swift. A good project should have a wake of destruction that is quickly learned from and cleaned up. Lots of carnage. LOL.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I recommend me. Really. I did good on this one.

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $375,000
Cash invested: $150,000

I have become an all-in-one real estate agent/construction manager/and (while the asset is being stabilized) property manager. This deal is for a client and we are just wrapping up. The numbers should be $550,000 with purchase price and rehab. This is for a 20 unit motel that we converted into long term apartments. Once fully occupied we will get a commercial appraisal and BRRRR. I think it will get a commercial appraisal at 1 mil at the least. Probably more like 1.2 mil. It is a total homerun...maybe a grand slam. It also comes with an additional 5 acres highway-commercial zoned, so we are going to put up a bi-directional billboard. We are thinking there is plenty of room for some storage units as well. Even without all this other development, the project is netting 10k.

What made you interested in investing in this type of deal?

The numbers!!!

How did you find this deal and how did you negotiate it?

I am a real estate agent, with an investor mindset and always have my eye out for deals. I wanted to buy this one myself, but couldn't scrape it together for the down. Instead, I am knocking it out of the park for my client.

How did you finance this deal?

My client bought the deal cash, but he is going to BRRRR once we get a commercial appraisal. He had never heard of this strategy and it took a few rounds of explaining, before he totally understood. Then his eyes got wide as saucers and his grin ear to ear.

How did you add value to the deal?

I literally have taken care of everything. Even negotiating a zoning change for a section of the property. I have truly handled every detail of this deal.

What was the outcome?

I am trying to figure out if it will be a homerun or a grand slam? I don't have enough experience to know. I just know it is a good one. I think conversion is a real sweet spot right now.

Lessons learned? Challenges?

Oh my. Fire people clean and swift. A good project should have a wake of destruction that is quickly learned from and cleaned up. Lots of carnage. LOL.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I recommend me. Really. I did good on this one.

I think that some folks in here don't realize how difficult it is to find local info on Subto. I am close to Springfield MO and have been looking for lawyers, title companies and mentors. It's not readily available. I found a group (REInvestors) in Springfield and am exciting to go to my first meeting, but will not be surprised if the strategies shared are traditional. 

I think that Pace is an incredible teacher. There are moments when he is too aggressive in self-promotion, but what I have learned for free, thus far, is pretty incredible. He is obviously raking it in with the mentorship, but I am leaning towards the value and cost being in balance. I watched one Youtube where he shared how he went to some pricey mastermind and learned to pay his whole life insurance through a foundation. It was pretty amazing and seemed like a gold nugget that people pay 30-50k for.

I don't like the fake account thing. That was low class and I bet Pace learned from it. I haven't liked how hard his folks are trying to sell the mentorship to me. A fella has been calling me, knows I'm inrerested, but is selling so aggressive that he got me defensive. However, I just learned tons from him how not to sell and reflected how I would do it different. Still a lesson I learned. I also don't like the way that Equity Assurance was sold as Insurance by Pace. That was dubious. I think he should have given it straight and explained the service as a comfort for those not saavy enough to negotiate through the situation, not wealthy enough pay it off, or fearful of bad credit scores with a refinance. It seems worthy enough for those services. For yall Premium seasoned folks you may not understand it and when you say just pay it off or just refinance...well you are missing the plight of the struggling newbie. I think Pace's scheme there was something that floated with his green mentees because they are often super young and just totally inexperienced. Clearly BP sussed that out in about 30 secs and called BS. I hope Pace learned and grew from it. 

Besides all that, my intuition still says that Pace has great heart. I think he wants to see his students excell and keep sending him deals. Win-win for everyone. I appreciate the Premium folks here who have shared some of their knowledge with creative financing, although some of it has been long lists of negatives without even a dash of hope or problem solving strategies. 

I notice the seasoned investors are like "ya, we too busy makin deals." Cool. You're attitude would never lead you to be a 15 million dollar mentor. That's ok, but don't be a hater.

How about instead you itemize strategies, experience and solutions? That would be way more helpful than just saying "you should learn for free." Perfect! Let me know how I can sign up for your free mentorship program. 

I love where your head is at Micah! I am teaching my daughter to think in a similar manner. I think buying a home in a great college town is an excellent idea. Once you graduate college, you will most likely have a solid cash flowing assett to lean on as you start your career. I think it is crucial to be aware that the real estate bug is addictive and could make focus more challenging. However, if you are aware of this I think you can apply some strategic self control. Many successful real estate investors started with a college house hack...except many ended up quiting school. They ended up millionaires still, but it is something to consider. I have an MA and would trade it for a sizeable portfolio any day of the week. :)

 I appreciate your words of wisdom. I didn't understand how you would sell the sub-to using a wrap. I do understand the deed of trust...I think. It seems like what your saying is you would kinda wholesale the sub-to and transfer the loan as a wrap and the deed of trust is included to continue to protect the lender? If you have time would you explain that a little deeper? I am super thankful for all the golden nuggets!!

 Our small rural market is still strong. We have a price reduction in some areas, especially higher end properties, but overall it is holding. I attribute this to a consistent flow of out of state buyers (we are a red state and are a haven for political refugees ;) and we always have low inventory. I think low inventory is obviously due to a small population, but also much of the land is legacy ranches that are passed on to younger generations. So Mo is the new Florida! Lol. Sorta.

Hi Brandon, my name is Katherine and am a realtor in So MO. Technically, the agent isn't supposed to disclose information regarding the other offers. Most agents loosely communicate verbally with one another and you might hear that an offer is too low or there are other offers that beat yours. What I have found is that the more I talk to other realtors, the more the accidently disclose the terms of all other offers. Make sure you don't get into bidding war frenzy and offer more than the deal is worth. Let me know if I can help you analyze the deal or offer any other advice.

 Hi Andres, I am a realtor in So MO and have started the brutal journey of cold calling. I don't know what it is, but I would rather chainsaw poison oak in booty shorts, but hey what doesn't kill you makes you stronger. I bought $500 in leads from a company called The Share Group. I tried calling other companies, but had a hard time communicating due to language barriers. I like The Share Group because they are a small US company and they constantly check up and are willing to update leads you didn't get to in a timely manner. I focused on absentee owners and distressed owners. Both of these classifications work great for potential creative financing deals. I have been only looking for listings as a real estate agent, but now I am going to start looking for creative financing deals as well. It ain't easy, but I have some really good leads, I also connected with another investor via cold calling, who is open to a future joint venture.