All Forum Posts by: Ramsey Blankenship

@Brent Coombs The headache would be remotely owning 10 homes with deffered maintanence. I would gladly sign the peperwork if it were for truley passive income however you and I know real estate is hardly passive with these little houses. If I had more than one vacancy the mortgage wouldnt be covered and I imagine the repairs are much higher than the calculated average provided in the profile sheets.

I dont know the specifics of the why the bank reposessed the homes, i just know they offered them to us. 

As far as your ALL CAPS ( slightly passive aggressive) comment about me wanting to conduct business - not sure what you mean Brent. I have simply never bought a house from a bank and buying 10 at a time was something I wanted guidance on. I own a duplex that cashflows $600 a month and 10 homes cashflowing at $430 seems low. If you want me to send you the information to the banker who has the profiles I am happy to. I no longer have interest in them as I am focusing on multi family only.

Thanks for any feedback

My banker gave me a call and said the bank had repossessed 100 homes from a group who was buying them for cash for under market value, refinancing with the bank at market value, and using the equity to buy more. Eventually the deals ran out and the notes were do and they couldn't make the payments. Now the bank is sitting on these notes and has offered to sale them off in groups of 10 homes per package. Bank is offering 100% LTV on a 20 year commercial with 4% APR (the financing is what gets me interested). The bank is paying all closing cost as well. About the homes: 100% occupied. Low income, affordable housing in distressed neighborhoods. Here are the numbers, they vary between packages but are all roughly the same: 10 homes for $350,000 Gross rent is $5,000 Vacancy (10%) - $500 Management (10%) - $500 Repairs. (15%) - $750 Taxes. - $300 Insurance. - $300 Expenses. $2,350 Mortgage expense $2,120 Total expenses. $4,470 Cashflow. $430 To me, the cashflow on 10 SFH is not worth the headache, however it is very appealing to me to have 100% financing and nothing out of pocket. I understand that financing the entire deal cuts into my cashflow with a higher mortgage. Depreciation and repairs are likely going to be higher than usual however not coming out of pocket means I have the funds to cover larger repairs because Its not tied up in my equity. I would not be interested in this deal if it required a down payment, however adding 10 homes to the portfolio for signing papers sounds nice. Does anyone out there have experience buying home packages from the bank? What are the red flags and other considerations I should be making. The agent told us that if the package was appraised, it would appraise around $500K so there is equity built into this deal.

The $650$-$750 i am getting are for 1/1 on the city side and long term rentals. Condos on the beach will rent for MUCH higher. Likely $1,200+ depending on amenities but im not sure. 

Condos come with alot of unforseen expenses, however people make them work. If you are looking to AIR BNB, reach out to @January Johnson 

She is a local RE agent who does AIR BNBs herself, knows quality cleaning companies, and can guide you into which places would rent best

Rents will be higher in Destin however your cashflow will be better in Panama City. Destin is pricey, however it is a much more progressive town with new development consistently popping up. I would personally rather LIVE in Destin.

Panama City however, is a very strong rental market. The place is a bit slummy, however the city is bringing in some development contracts to make the area more family friendly and get rid of the spring break vibe. 

The city side (east of the Hathaway Bridge) is planning to revamp the downtown marina in a huge way (http://www.newsherald.com/news/20160823/new-look-r...). 

Panama City Beach is also working on making the city family friendly with the alcohol ban on sandy beaches during spring break months. They are also under construction for a very large youth sports complex which will bring year round travel teams and their families to the area for sports (http://www.visitpanamacitybeach.com/sports/new-spo...)

Eastern Shipbuilding also just received a $10.2B contract to build Coast Guard Cutters which will bring 2,000 more jobs to the city side (http://www.wjhg.com/content/news/Eastern-Shipbuild...)

My recommendation would be to put your money in to Panama City and on the city side. Specifically St. Andrews and/or the Cove areas. There are plenty of multi family homes in those areas however as of lately investors have been gobbling them up. These are, and will be the desirable rental locations. I own 12 Units, seven in St. Andrews, three in the cove, and two in the hood. All of my units stay occupied at around $650-$750 for a 1/1.

Hope this helps.

This is for everyone looking into investing in PCB. For the past 2 years, PCB has banned the consumption of alcohol on the beach throughout the month of March. It has basically abolished spring break. This is a good thing. The city is tracking more and more families visiting the are and we all know families spend more money in the local economy as apposed to the spring breakers. 

I don't have the actual numbers on this, but I believe it is fair to say that there has never been a college spring break that came down here and left with a mortgage to a condo on the beach. Families will come down and fall in love with the Gulf Coast, and consider buying a condo as a rental/vacation home. 

Panama City is making a turn for the better. The council is doing a great job with upgrades such as the overpass on the city side of the hathaway bridge (which currently has a very active train track and red-light causing tons of traffic), banning alcohol on beaches during Spring Break (this makes businesses hold more family friendly retail items which cleans up their look and act) and the addition of the new sports complex on the east end which will bring in youth sports teams and their families year round. 

I would never recommend a condo for an investment. There are places you can make a much greater ROI. However, there are only so many miles of Gulf Coast Beach in this world and owning something right on top of it is a great lifestyle choice. If you can make the numbers work and cover your mortgage with a decent cashflow, I dont think there is a city on the gulf coast with better prices right now, and Panama City is on the rise.

Destin and Pensacola are already well established family vacation cities and you will see that reflect in the price of purchase.

Justin B. 

Thank you for the information. We passed on the bundles however this has opened my eyes to the value of having relationships with bankers and brokers. I want as many deals like this to come across my desk as possible. Eventually the right one will surface. 

One question my partner and I did have was, other than buying properties, what is the best way to establish relationships with bankers? From what I read, it is to attend REI meetings and reach out to them on BP. Any other ways you can think of? Should we just walk into a local bank and introduce ourselves as investors in distressed properties?

We got the addresses today and I looked up the properties in two of the most appealing packages. Many of them have profiles with photos on zillow and trulia. They are pretty distressed and the bank mixed the good with the bad. Some of the properties would make decent rentals themselves however they are bundled with homes in flood zones or vacant, highly distressed units. I ran some quick comps and do not see the package being worth $500K. We pulled our interest from the deal. Thank all of you for the input. Ramsey

Physical properties

My banker gave me a call and said the bank had repossessed 100 homes from a group who was buying them for cash for under market value, refinancing with the bank at market value, and using the equity to buy more. Eventually the deals ran out and the notes were do and they couldn't make the payments. Now the bank is sitting on these notes and has offered to sale them off in groups of 10 homes per package. Bank is offering 100% LTV on a 20 year commercial with 4% APR (the financing is what gets me interested). The bank is paying all closing cost as well. About the homes: 100% occupied. Low income, affordable housing in distressed neighborhoods. Here are the numbers, they vary between packages but are all roughly the same: 10 homes for $350,000 Gross rent is $5,000 Vacancy (10%) - $500 Management (10%) - $500 Repairs. (15%) - $750 Taxes. - $300 Insurance. - $300 Expenses. $2,350 Mortgage expense $2,120 Total expenses. $4,470 Cashflow. $430 To me, the cashflow on 10 SFH is not worth the headache, however it is very appealing to me to have 100% financing and nothing out of pocket. I understand that financing the entire deal cuts into my cashflow with a higher mortgage. Depreciation and repairs are likely going to be higher than usual however not coming out of pocket means I have the funds to cover larger repairs because Its not tied up in my equity. I would not be interested in this deal if it required a down payment, however adding 10 homes to the portfolio for signing papers sounds nice. Does anyone out there have experience buying home packages from the bank? What are the red flags and other considerations I should be making. The agent told us that if the package was appraised, it would appraise around $500K so there is equity built into this deal. Ramsey

Thank you all! I am just now getting back to this post after 2 months and realized I had my notifications turned off. I have been busy. Fired the PM company and had the 3 units filled within 3 days with good tenants. Really good tenants. Now I am back to managing on my own which is fine however I am still moving across the country in 6 months. I began using rent tech direct to track and manage my properties and I like it. Only at it a month. My plan forward is to call a few PM companies as a prospective tenant and the one that is the most attentive, and has the easiest systems will be my new management company. Thank all of you for your replies! Ramsey