All Forum Posts by: Nicholas Caldwell

All great points. So I forgot to mention it’s owner financing. Also come to find out they aren’t offering to loan the rehab costs. They are out of state and have not started lending for rehabs in ga yet I guess.  So exploring a partnership at the moment. So as of right now it looks more like a $27k note with “18% down” which will cover loan origination fee, closing cost, and a portion of the principle loan. Interest only loan at 14%. And I need to secure the rehab costs. I had not considered insurance.  No the only way I’d do a rehab on my own is if i was house hacking. It is my first deal of any sort. Thanks for the feed back!

I Noticed a bandit sign for an "Investor Special", so in the spirit of hustle I called immediately. The property is a 3/2.5 that needs moderate rehab; can easily add a fourth bedroom and turn the half bath into a third full, update the kitchen and bathrooms, move the laundry from the kitchen to a dedicated laundry room, throw up some paint and other cosmetic stuff. Biggest thing it needs as of right now is HVAC. The seller is offering an Interest only loan for the full cost of purchase and rehab ($27K asking, $20K-$40K rehab) with 18%-20% down at 10%-14% interest. We are going to Offer $20K, with $40K rehab, $11K down, at 10% interest. We don't have 11K or the $500 a month for the interest payments so our plan is to find a second investor to put the initial $11K down and make the payments while we complete the rehab (6 months-ish or less hopefully) For a rough total of 14,000. Once the rehab is complete the plan is to refinance which hopefully will play out something like this....

ARV: $88,000

Refinance: 66K (75% of FMV) with a 3-4% APR.

Pay Off Lender: $49K

Pay Off Investor: $16K ($2K profit)

Remaining $1K goes to an emergency fund for the property.

From there we will either rent it out or offer a lease option to buy or maybe just list it for FMV and take our profit to fund our second deal.

What are you thoughts and advice? Any major flaws to this plan?

Thanks!

I understand when running comps I want to find homes that are as similar as possible to the subject property.

same # beds/baths

+/- 10% sqft

+/- 10 (ish) year built

Sold within 6 months to a year

within roughly <1mile radius

So if I can't find anything within those parameters, what do I expand first? First thought is to extend the time frame. For example, sold within a year to 18 months... I had to go back two years to get anything and even then I couldn't find a single 4/2.5. Closest I could get was 3/2. 

Is there a different rule of thumb for running comps in a rural area or smaller city?

Do I expand my radius? If so how far?

If I simply can't find any usable comps what do I use then? 

Thanks for the help y'all!

Hey! We are having our inaugural meeting tomorrow at 7pm at moon river brewery in Savannah. We would love to see y’all there! I have the app for the cash flow game downloaded on our iPad. It’s awesome!!

Katie Deskins I am not sure that it worked....

John Vietmeyer we have not but it’s about time we do. It’s really short notice but I am looking at the 30th. Working on the details now.

I am looking at a park that is pretty awful, which too me is exciting because I see lots of potential to take this poorly maintained commercial property and polish it up for some killer profit. My concern is, as the saying goes, "you can polish a turd and it's still just a turd"! Obviously depending on the specifics, which I am still waiting on a call back, is it worth taking a run down, disorganized property that isn't anywhere close to its potential and putting the time and money in to develop it into a nice community? My thoughts are.... Reorganize the homes into a well thought out , functional, and aesthetically pleasing layout. (I think a blind man could have placed the homes better than they are now!) Weed out the dilapidated MHs (which from the outside is most of them) Sell off as many MHs as possible striving to be that no park owned homes kind of place to reduce the maintenance costs Hire professional management which should ultimately make the park more efficient therefore creating more cash flow Dress the place up with some landscaping, maybe a new sign at the entrance, an overhang for the mailbox area, maybe a play park to really make is a classy family community.... basically whatever will make it appealing but still cost effective instead of the junk yard it is now There are roughly 5-7 of the approximately 9 acres for sale that are undeveloped. Use that land to increase the park from 30 lots to anywhere from 50-90 lots. (The 30 lots that exist currently are barely using 2-3 acres) Would have to clear out trees and run the water and sewage and electrical.... the whole nine yards. Work some sort of deal with a MH dealer to place homes on the lots and then we would do all the ground work to get people to come finance them. At which time either the park would outright buy the home and do owner financing to the tenant or the tenant could straight buy it from the dealer whatever works best for the situation. That way everyone wins. The dealer sells homes that are already pre placed (maybe at the parks expense to sweeten the pot) the park doesn't have to outright buy millions of dollars worth of MHs up front just to fill the lots, and people get a nice new trailer to live in. All of that within the first year should increase the cash flow and therefore the value of that park exponentially I would think... What do y'all think? What am I missing?

Hey yall I am looking for recomensations for a great real estate lawyer in the Savannah, GA Area. Thanks!

@Taylor Matthews Exactly what I am thinking. Looking on Meetup.com there is a decent amount of people interested in a free local meetup. I am talking to a few of the group leaders up here in the Seattle area about how they got their groups started up. If you are interested in helping lead something like this let me know and we can meet up once I get to town in a couple weeks.

Originally posted by : @Julian Buick awesome thanks for the intel. I am not a big fan of groups with membership fees. I understand that certain occasions simply require funds but for newbies like myself who don't have any extra money to begin with, it puts a damper on the group. I cant always attend so I don't want to pay for something I may not get to use. There are several groups up here in WA that are completely free and a huge success. May have to look into starting my own when i get there. The connections made at these event are invaluable as is the ability to knowledge share which helps everyone learn different tactics and strategies for whatever situation may arise. Who are some of the well known investors or at least some of those "seasoned vets" in the area? How much experience do you have? How has the market treated you down there so far?

I just moved here a few months ago from Seattle. There is no bigger pockets Meetup here but the Savannah REIA is decent. It's pretty small, only about 30 people show up and most of them are newbies or wannabes but occasionally there are some seasoned vets there. The organizer is a really nice guy and quite a character. It's always a fun time.