All Forum Posts by: Lisa Knudson

Former Student of Chris McClatchey ... Thank you, Chris, for keeping the requirements for submitting deals black and white. 

There are enough "gray" areas when investing in Real Estate. I am a former RE Investor and now an Amazon Merchant Seller. What I LOVE about Chris is that as a former member in good standing, his team still to this day (years down the road, mind you) send me notifications about his deals for me to consider as a passive investor. 

I love RE. At this point in my life not able to pursue it actively. There is NO SUBSTITUTE for hard work. Chop wood, carry water and do one right thing at a time. Over and over again. Vote of confidence for Chris from me. 

Not all folks will even understand what I am saying, but I know Chris and many others will understand what I am saying. 

If you don't get it, well, you likely never will. Thanks Chris, for caring so much about little details that keep your network protected. 

I interpret proforma numbers as pretend & rely on referrals to very good property managers for a projected idea of performance possibilities ... Very dangerous to EVER rely on proforma numbers & NEVER purchase based on proforma - unless the due diligence you or other hired professionals confirms you can reach the numbers & you understand how much needs to be done to bring the numbers up.

Just saw a very sad situation where a family with a motel background bought a 200+ unit BASED ON PRO FORMA that was a complete repositioning in a changing urban submarket. They are desperate to sell now & have owned it <1 year. The occ has dropped from 97% to 63% & the tenants bossed them around. Very sobering - I finally understand it is better for me to hire out to trusted professionals for property management, duediligence help (economic & physical) & others who have already done it! Still working on closing my first MF but have a lot of my team in place. Getting ready to submit an LOI on a 106 Unit next week!

Hi All ... just thinking about this when I saw this post! What about MIDLAND - ODESSA markets? Looking into those markets on the way to Dallas from Arizona and am seeing lots more on the market than in years past. 

Rents and values are higher than other Texas Markets - but toward what end with prices of oil down? Wall Street Journal spoke to this recently in an article stating the diversification debt to asset ratios of TX banks relating to oil - their perception was all (with only 1 exception) are diversified out of oil significantly to not be affected. 

Am interested in opinions ... have NOT done our underwriting analysis yet and have not yet visited the subject properties (planned visit early next week) ... so ... If you were a multifamily investor would you purchase in Midland/Odessa now?

Thank you in advance for considering ... toward some context ... a 25 unit built in 68 with an asking price of 83K per door, and another for 70K per unit both 100% occupied. Both reporting Pro-Forma numbers only on the offering memo.

A friend has hooked me up with a European investor who intends to wire 200K to our RE company (we have both known him 20+ years). We are offering monthly interest payments of 9% for a two year, renewable term with a one time lump sum of 1% fee paid to the friend who hooked us up. All fine.

Question: Would you pay the 1% finders fee one time for the first two year term, or ongoing at each renewable term? I know we can do what we want but what is customary and what is fair?

Other Question: The EU investor has other family (the investor's relationships not the bird dogs) would you offer to pay the EU investor a 1% finders fee if his group comes in with more money or would you again kick some back to the original bird dog?

Just wondering what you all think. Thank you very much! LisaYatesKnud

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Stick with it Jody! What I learned after having every single power tool stolen from a flip property - the day after a very young team of males installed new HVAC supply lines in the subject property. Keep a list of the serial numbers of all tools and/or inscribe your name on them with a metal solder gun and a list of the serial numbers.

We noticed an attitude from this group of workers as soon as they arrived. They brought a boom box in and blared rap music at OUR work site. Pants hanging off their butts, smoked and left butts laying outside. Today, I would immediately call to complain to the company. I did so after the fact - an original steel frame window was left pried open - out of view from the street, with alley access over a fence (the gates were always locked).

The company's owner was sympathetic but powerless to do anything other than talk to the group of workers - which he said he did. Side note:(We went out and bought lesser quality tools given the quantity we needed and the circular saw blade sheered off on the roof one day. Grateful the blade flew into the air at the same time my husband threw the saw, but was standing on the extension cord and the saw swung wide, came back in and busted out a brand new window. Small price to pay, given the other possible consequences.)

The detectives are basically powerless to recover stolen tools without serial numbers. In smaller communities, have heard stories of robberies with personal recoveries at the local flea market or pawn shop, but in Phoenix that is too big a job to chase.

This type of thing, unfortunately is common. You really don't know these folks, consider waiting to come to final conclusions. My experience is that the names and faces change and the personalities all stay the same. Some I want to do business with and some I don't want to do business with - part of what attracts me to this industry - the choice is mine.