All Forum Posts by: Pat Wilver

I like Liz Thompson of Rubnitz Thompson Ziblut.  But your first contact shouldn't be an attorney - talk to other investors and RE agents.  I started my RE investing journey when I was active duty, just start reading and listening to podcasts, then when you have a good handle on things jump on a deal.  Happy to chat sometime about my experience.

The Savannah market is getting out of hand. I don't even look at deals on the open market tbh. And if you're not a cash buyer it's not even worth putting in an offer in my opinion unless you like losing money. I've started listing properties for my bigger wholesaler friends/clients and the bids I get are insane. Just recently listed one for 130k, ARV 190k-ish, maybe 200k, needs 35-40k of work. I got two financed bids at 150k, a bunch of cash in the mid 130s. I don't know how these folks are planning on making money but at least the cash flippers would be able to make about 10k.

These wholesalers of mine will let these properties go cheaper if they don't have to take them down themselves, but not much cheaper.  But typically you can't buy a property on a wholesale assignment contract with conventional financing - banks hate assignments

@Marshall Adams Workman's Circle is really the best local lender if you lack W-2.  You could also check out Angel Oak loans, I believe they're out of ATL.  I like Patton Gade out of Paramount Bank for conforming loans, he's not local but he's got some great terms on his loans.  Other good local lenders are Susan Coleman of UCB and Rhett Maish of South State Bank.

Haven't been too active, check out the Savannah Real Estate Investors FB page

Marshall - congrats on making the decision to jump in!  I'm a civil engineer by degree, though I decided to pursue real estate full time when I left my last job as well.  I decided to get my license to pad my income while I get the investing side rolling.  I did already own two SFRs and a duplex before quitting the day job, but the income from working as an agent has helped me to buy one more rental and I just put my first flip under contract.  It sounds like you're off to a good start - your restomod business will ideally pad your income while you pursue good deals around town, and having a partner with experience is a big leg up.

In terms of financing - you'll have to go hard money or portfolio lending. Right now I finance my rentals with Workman's Circle Credit Union, they are giving me 75% loan to value, 20 year amortization,with a 5 year balloon at 4.75%. You can also use lending home at 80% LTV, 6.95% 30 year fixed. Those terms aren't too great, but when you don't have any W2 income you gotta take what you can get!

I'd be happy to connect sometime!

Originally posted by @Mark Fries:

@Daniel Caldwell

I'm not picking on you but 12000 to install a new air conditioning system with duct work is really high... That total job should cost no more than like 6500 and even that is probably high... I could probly give you the phone number for my guy and he would drive up there from Jacksonville and do it for like 5500..units, ducts..all of it.

Just continue to sharpen your pencil and try to make it work if you think it's a good deal.

I was actually thinking 12k was about right.  We spend 4-6k to just swap out the systems, then running the duct work gets added to that.  But if you have a guy in Jax that does it for that cheap I would love to get their info lol

Marginal deal - rent out there on a decent 3/1 rental like that should run you about 900 to 1000, this unit looks small though so let's go 900.  I typically use 80x rent to do my numbers on rentals out there, so you should look to be all-in around 72k including rehab.  

I'd be interested in meeting.  I have an office that could accommodate about ten people, or we can book some space at one of the hotels - I'm sure they'd be thrilled to have someone using one of their meeting rooms.  

Investment Info:

Single-family residence buy & hold investment in Savannah.

Purchase price: $90,500
Cash invested: $24,000

Turnkey single-family deal in a C neighborhood that I put together with two friends. Projected project IRR 20% (5 yr hold) due mainly to the fact that we bought about $25k under market value. Decent cash flow on a section 8 tenant, though nothing to write home mom about. Financed through a local credit union on a portfolio note with a 20 yr amortization and 5 yr balloon.

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

I wasn't personally too interested in buying another tunrkey rental, but a friend of mine wanted to get involved in Savannah real estate and needed a local partner. He came in for most of the cash and is paying me a small management fee, so it works out well for all parties!

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

Friends of mine who run a wholesaling business brought it to me. I was able to get a good deal because not too many investors are interested in tenant occupied properties right now, and we have good rapport from all the deals we've done together. I actually tried to kick this deal to one of my clients but he passed - his loss!

How did you finance this deal?

Local credit union on a portfolio loan. No points, 25% down, 4.75% on a 20 yr amortization with a 5 year balloon. The short amortization cuts down cash flow, but our plan is to sell in a couple of years anyway so we'll recoup that cash. Overall I'm very pleased.

How did you add value to the deal?

We baked the value in by buying 25k under market value - we could refinance after a few months and pull out a large portion of our invested capital ;)

What was the outcome?

We still hold this deal and are cash flowing well. We did have to spend about $1000 on deferred maintenance, but we set aside a budget for that.

Lessons learned? Challenges?

We're learning the inns and outs of the section 8 program, first time for me. So far the housing authority has actually been great to work with and I'll likely be looking to buy more of these properties!

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

I am the agent, so I definitely recommend me! Billy Norse of Weissman Law closed it and he did a great job, and Workman's Circle Credit Union did the loan. Moseler Perkins Group was the wholesaler. Everyone was great to work with!

Carlton Murray does all my stuff, DM me if you want his number.  Gave me a reasonable quote on a re-wire, but I fortunately didn't end up having to do it.  If you're looking for a GC, Doug Rains of DNR construction does a pretty good job, though I've found sometimes you have to stay on him to complete the punch list stuff.  The heavy lifting stuff though he's really good for, reasonably priced and gets it done fast.