All Forum Posts by: Matt Marcus

I work with investors almost exclusively and would love to get on an intro call to see if we’re the right fit for what you’re looking for!

Matthew Marcus Realtor TNLIC#334339 - Velo Homes Group | E: [email protected] : Here is my Digial Business Card: https://poplme.co/matthewmarcus/share 

Quote from @Michael Baum:

Quote from @Matt Marcus:

Quote from @Michael Baum:

Hey @Ryan Baron, there are a lot of restrictions in the Nashville general area so you have to be careful.

 Michael- The restrictions while there are some, those laws are very clear now-- and there would not be a situtation where anyone could find them selves in a grey area for investment purposes in short term and think they could and find out later they could not.

1) If it's parcel is NOT zoned commercial or the HOA by laws do NOT allow STR, then it cannot be an NON Owner Occupied STR.

2) IF it's an HPR- You must own both A and B units for Attached or Detached HPR's -

3) If it's single family, only Owner Occupied STR is allowed (even if it is your primary residence and as long as it does conflict with HOA guidelines. )

Curve ball for all other properties that had been grandfathered in :

4) Lastly, Grandfathered in Properties that were existing before the new laws were established are NOT eligible for NOO-STR once the Entity changes/ has a new owner/ the property is sold.SO The only way to purchase a grandfathered in property, is 1) if the current owner of the STR established an LLC and that is the owner on the tax records  AND 2) If the prospective owner purchases the Business and it's assets and not the property directly which requires a Business loan, not at mortgage.

I understand that things have shaken out but I still would be wary. They are only a hop, skip and a jump from more restrictions or outright bans. That is just my opinion, but that is the way many major cities go.

I think we've landed in a place we will remain in for the foreseeable future. It really put STR's in the place of Commercial use so the land must be commercially zoned/ have a Specific plan when built or have an HOA that allows STR's.

If it does not, then it's residential or Owner occupied only. Which creates a pretty clean and clear understanding for the public, developers and city counselors on the law. There will always be proponents on either side of the isle on this decision and the biggest issue are the hotel lobbies advocating for more regulation or less-- but having been part of the developers and investors with doors who fought against further restrictions the sentiment among colleagues this is a really solid landing pad of legislation we can build predictable business on for the foreseeable future because it limits the use based on the land itself/ or a public hearing to approve a Specific plan for a site not just any house in certain areas.. so It's just about having someone competent who knows the laws and knows the area to help guide you in that purchasing decision. 

Quote from @Zane Landeck:

I am 24 years old currently renting in Nashville. I have 30k saved up, but do not have strong W2 or 1099 income right now. Will this effect me pulling a FHA loan? Would co-signers help pull the loan? I have read the House Hacking book and plan to do just that when my current lease is up. Any thoughts on what the smartest thing to do here is and any plan of actions I should take?

There are DSCR loans- Debt Service coverage ratio-- so the loans would be based on an income producing property not your income.

Also, I would consider partnering in with people -- verified and qualified builders/ or  flippers who have a track record of successful flips. And even some failures. you want to partner in with someone who isn't going to sell snake oil-- but rather have real world experience. 

You can leverage your cash on projects and then you can make money on your money until you build up enough capital to purchase something in cash or split your cash into multiple partnerships and deals at once. 

Like you can lend someone 30k for a flip charge them 10-13% APR simple interest and charge 5 points to use your funds for 120 days to get through the project. you file a promissory note and personal guarantee on the proejct with the borrower to pay you back and file a lein with the title company on the property.

Then you would make 1.5k  on your money from points and $1,300 from monthly payments from the borrower on interest payments and then you are walking away with a sizable return for no work whatsoever.

No income needed. but you need to lend to trustworthy people, have documentation of the loan, agreement to pay it back and a lein to make sure you get paid back in the event of default.  sounds difficult -- took less than 1 day with the title attorney to set up.  so not a difficult process.

Call me / Direct message me if you want other ideas but this one requires the least amount of effort and will make you more money on your current dollars within 4 months than you would if you purchased a cash flowing property over a year with your current down payment.  

Quote from @Janea L.:

I don't know much about the tiny homes market. I was reading the Bigger Pockets Beginner's Guide to real estate investing about investment vehicles. Tiny Homes weren't mentioned. I'm curious about your thoughts on Tiny Homes as a Real Estate Investment opportunity. Are there any good resources you would recommend to get started?

I have a few coming up for sale, but what i love about them is that for airbnb, STR--- you don't need to make as much each month to pay the loan. And people love them to stay in for camping and close to areas of nature and hiking as a get away. lmk if you want any details.

Quote from @Sarah Jordan:

Hello! My husband and I are just getting started learning all that we can about real estate investing and would love to meet some people who are currently in the game in and around Nashville. We are looking at starting with airb&b rental arbitrage due to the low capital needed to get started, but I am not married to that strategy if I find another avenue. 

We would love to get coffee and pick your brain!

Sarah

 I'll DM you!

Quote from @Luka Milicevic:

Hey @Gleason Jones welcome to the forums! 

I owe a large part of my success in RE to the BP forums and podcast. 

As mentioned above, you are entering a tough market BUT that doesn't mean you can't succeed. If you are willing to put in the work, make the right contacts and hustle you will achieve your goals. 

In terms of brokerages, it's going to depend entirely on what you want to do. I switched to a flat fee brokerage because it made the most sense to me. I don't need a name brand brokerage that takes 20% of my commission and makes it hard for me to invest. 

Don't just settle on a brokerage, make sure to interview several and see what works best for you and your goals. 

 Right but most brokerages only take that 20% up to a cap of 5k, 10k, 20k or 30k.  And work to learn before work to earn especially young and in a new market. if a brokerage offers the right tools to help an agent excel at selling/ listing and then also make more sales, then it would be worth choosing a brokerage that may charge more because they would make more money even paying the fee which would give them more money to invest back into RE- VS a 100% commission / flat fee or low fee brokerage that maybe they are not getting the tools they need to grow and make more sales-- so while they earn 100% commission, they still have made less than if they had paid more to brokerages  that offered the right support to help accelerate their career.

I agree that people shouldn't just choose brokerages or be wary of the fee's but if it genuinely helps someone say clear 100k after splits vs making 50-60k but 100% commission that's a 40k spread or about 4-5 additional transactions for a new agent. this is obviously conjecture but i have seen it in action in the career's of others where they chose the cheapest brokerage to save more to invest, but their deal volume was low and slow in comparison to another agent i know who chose a traditional 20-30% brokerage to cap- but got the support and one buddy is still scraping by and the other friend has hit top 10 in his brokerage and i've seen the support he has gotten pay off and he's been able to take care of debt , and go on trips.. and buy his first FLIP! everyone is different -- but my 2 cents is that it depends on what the individual needs and paying more but getting more is worth paying less and getting/earning less 

Quote from @Gleason Jones:

I'm currently an agent (2 months was a loan originator for 5 years currently 26 yrs old) in Alabama. My wife and I have made the decision to move to Nashville in 2024. (Its where we met and shes from Kentucky and ive lived in the same town in Alabama my whole life.) I've started looking brokers but while also learning how to be a successful agent want to start working with investors as well as be one myself.

Any resources, advice, people i should connect with would be an amazing helping hand!

 I'll DM You! Got plenty of experience with several brokerages over the years and you can decide what works best for you

Investment Info:

Condo buy & hold investment.

Purchase price: $230,000
Cash invested: $100,000

Buy and Hold Property

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

Could negotiate with the builder directly for the best deal.

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

It was on the MLS- I just got it UC before they broke ground.

How did you finance this deal?

Loan and Cash.

How did you add value to the deal?

I didn't. just a buy and hold.

What was the outcome?

Still own it. and increased 100k in value in a short time.

Lessons learned? Challenges?

Buy RE and wait. dont wait to buy.

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

I am a Realtor.

Quote from @Michael Baum:

Hey @Ryan Baron, there are a lot of restrictions in the Nashville general area so you have to be careful.

 Michael- The restrictions while there are some, those laws are very clear now-- and there would not be a situtation where anyone could find them selves in a grey area for investment purposes in short term and think they could and find out later they could not.

1) If it's parcel is NOT zoned commercial or the HOA by laws do NOT allow STR, then it cannot be an NON Owner Occupied STR.

2) IF it's an HPR- You must own both A and B units for Attached or Detached HPR's -

3) If it's single family, only Owner Occupied STR is allowed (even if it is your primary residence and as long as it does conflict with HOA guidelines. )

Curve ball for all other properties that had been grandfathered in :

4) Lastly, Grandfathered in Properties that were existing before the new laws were established are NOT eligible for NOO-STR once the Entity changes/ has a new owner/ the property is sold.SO The only way to purchase a grandfathered in property, is 1) if the current owner of the STR established an LLC and that is the owner on the tax records  AND 2) If the prospective owner purchases the Business and it's assets and not the property directly which requires a Business loan, not at mortgage.

Interested but what about price? Usually North Western has a pretty steep wholesale fee included that makes the purchase a non starter -- so Msg me Directly as I'm interested but need to run numbers.