All Forum Posts by: Malcomb Stapel

@Marco McElwee Jr. welcome to BP, what part of Kansas are you from? 

@Alejandro Forte it sounds like a substantial portion of your portfolio is free and clear. I would guess this puts you in a minority of real estate investors out there. A lot of options going forward as to what you could do. There are two opposing strategies that jump to mind. 

First would be to leverage the paid off one's to purchase more, if you really need more of them. 

Second would be leave the paid off one's alone and use them as a financial base and security. You could use your own personal funds or cashflow from these to purchase the next units, but you would always have those paid off one's sitting there keeping you safe. 

 I believe he mentioned this is a pitched roof, so most likely composition shingle. However, your post is highly accurate on flat roofs. We recently had a flip where the membrane over the garage was leaking on the north edge, water migrated back about 15' before finding an opening in the decking and dropping through to an interior hallway. It was an easy way to net -$2500 

@Mike Urena this is a tricky one. Selling rights to a lease, figuring in utilities and vacancy. Do you have enough time in these that you can show consistent trends in expenses and vacancy rates? If I was going to consider them I would want to see at least 12 months of books. Also, you probably have several thousands of dollars in  furnishings that you need to recoup. So really selling lease plus furniture. Realistically you are selling furniture and the fact that it comes already set up. Nothing else about the asset is tangible to the buyer. 

If this is something you are trying to unload to free up some capital or time, then it may just be worth figuring how much furniture you have, assigning a cost, then see how long it would take at the normal cashflow for that furniture to pay for itself and start making the new owner money. For instance if it's $5000 in furniture and you are netting $500 a month then it's 10 months before your buyer sees any actual income. That's going to be a hard pill for most folk to swallow. 

@Jesse Dominguez-Castelan you could get in touch with a local bank in that town and explain to them exactly what you just did here and ask them if they have a product that might help you accomplish both the buyout and the renovations. If you bought it for a good price, and it has appreciated properly, you may have enough equity to not have to bring your own capital. 

 Just to clarify, you are wanting to sell your position on the lease? 

@Joe S. I can see how this would be frustrating, especially not having your own eyes on it. If your talking about rain blowing under some shingles then i'm with @Adam Bartomeo , you could just have one of the handymen repair that section. If it's a flashing problem/ boot they should be able to get enough roofing cement and silicone on it to make it go a few more years. 

Have you tried calling some of the local roofing companies and saying hey I don't want to replace the roof right now, what can you guys do for me? 

@Tim Porsche just a little food for thought. 

A price drop can have a stigma attached to it for a lot of buyers. People see it and go, hmm something is obviously wrong with that house if they had to drop the price. 

Day's on market are trending upward in most areas of the country. A lot of sellers and agents think somethings wrong because the house didn't get multiple over asking offers on day one. They need to forget about the covid era DOM times and adjust to the new normal. 

As others have said, price it competitively. If your product is in the top 10% of what's available and you are asking the same price, it should be flying off the shelves, hopefully for over asking. 

The lady giving the verbal offer that says she thinks their might be mold is not a good buyer. She's going to be a pain in your *** if you go under contract for her. Unless she writes it as non contingent and as is. 

@Joe S. can you give more details? Where is it leaking, roof composition, pitch, etc? 

@Rick Albert hit the nail on the head with that one!