All Forum Posts by: Mykael Williamson

Solid list Josh!  Thank you.

Dominique hang in there!!! Nashville is smoking hot right now, but it is still out there for you.

Hey everyone!

I have looked for this one but don't seem to be finding it.  I am doing a corporate lease deal.  A single company is the tenant and they have their various business travelers stay in the unit.  The lease is all inclusive with weekly cleaning as well as cleaning in between guest stays (similar to a hotel).  I am wondering if anyone else is doing this model and more specifically what you are paying in cleaning costs?  Right now I am looking at a little bit over $300 per month for the cleaning service.

Thanks!

Mykael

I suppose I could have just as a easily titled this: How did people go bankrupt in 2008?

Here is my question, I am new to real estate investing and I understand from the BP community that leverage is the key to expediting wealth.  However, there is a need to be responsible with leverage and mitigate risks when possible.  

My goals: I want to wholesale property while I learn, next step is use my day job capital to flip properties, then finally use that revenue from flipping to purchase buy and hold rentals until I can fire my day job.  

I read J Scott's posting on his strategy with leverage and how he likes to be in at least a 30% equity position at purchase.  So I guess what I am asking is, if a property that I am holding has positive cash flow...a healthy 6 month reserve behind it...and I am at a 30% equity position in the property, what is the WORST that can happen?  

1. Can the bank go under? Since they failed, do they have the right to call my mortgage due forcing me to sell the property?  I could see that being pretty bad, especially if the property had depreciated more than 30% requiring me to take a loss on the sale.

2. I suppose the job market could dry up and there could be no tenants to be found or rent rates could decrease making the property negative cash flow for longer than my 6 month reserve?

3. I guess the tenant could loose their mind and destroy the place before they leave, creating damages that far exceed my reserves and CapX reserves. (hopefully my property management company would follow @Chris Clothier's model of building great relationships to hedge me against this risk.

What else could go wrong?

Thanks everyone!

@Jeff Banky

Hey Jeff,

In the downtown district Nashville just passed $3/sq ft for rental rates. 600 sq/ft high rise units are going for $1,800/month all day. The MLS for single family homes is smokin' hot. I talked to a guy yesterday who was taking a client around to look at homes and 6 of the 8 units they went to see were already sold same day. 2 of those were sold within 3 hours of getting listed. He said his client was nearly in tears. It was the same story for my parents about 6 months ago. They had to buy based on one walk around the property from that morning's MLS sheet.

I know some people have mentioned Antioch as a good opportunity, I would tend to agree.  I grew up there and live in between Antioch and Brentwood now.  So, Antioch just got word of 1,400 CHS (hospital system) jobs going into the location where Old Hickory mall was.  Also, that mall has been converted to a data center for HCA among other things.  There is a very large green space that is in planning for the area, and they also just received a new middle school over by Percie Priest Lake that is supposed to be pretty nice.  To be completely honest, Nashville is exploding right now and while I know we don't like to speculate on appreciation, you will likely pay retail in this market and still experience strong appreciation for 2-3 more years.  We literally have foreclosure banks asking for retail prices...even if it means they have to hire a contractor to replace paint and carpet to get it.

The one major downside is traffic.  We are easily 10-15 years behind where we need to be in terms of mass transit infrastructure.  Our culture is still trying to go through a transition to accept mass transit since it is new to town.  The bus line vacancy right now is 85%!  I know a few of the mayoral candidates have focused their campaigns around that topic. 

 (oh yea, there will be a new mayor by the end of the year...but no worries, all of the front runners seem real estate investor friendly.)

Best of luck!

Mykael  

@Paul Timmins

Paul,

Those are fantastic suggestions, thank you!  I have purchased J Scott's book and finished both.  They are a fantastic reference source.  

Also, yesterday I went to a new investor REIN-TN meetup and a Williamson County new investor meetup. Both were pretty eye opening. Obviously Nashville is on fire right now with home prices at record highs and ~88 people per day moving to town. The deals on the MLS are all but non-existent. One of the folks I met at the Williamson Co. meetup really emphasized that the only way to find deals in this market is to get ahead of the MLS or work through a reliable wholesaler. Houses on the MLS are literally selling hours after being listed at this point...

Almost makes me wonder if I should just try my first few projects in the northern suburbs of Chattanooga, TN instead.

I look forward to the journey either way!

Great to make your acquaintance Micah!  Will do.

Hey Greg,

I just met a commercial broker today at lunch (our local REIN) who specializes in as a commercial business and commercial real estate brokerage.  

I have not worked with her she seemed pretty sharp.

Her contact info is below:

Jana Truman

Best of luck!

Mykael

Hi BP!

My name is Mykael Williamson and I am a new real estate investor in Nashville, TN.  A little about my background: I am a native from Nashville.  My day job is in healthcare operations and I am very excited about learning as much as possible by getting involved in the Bigger Pockets community.

My goals in real estate are to create a portfolio of buy and hold rental property through buy and flip revenue.

I look forward to learning and contributing as much value to the community as possible.

Thank you!

Mykael