All Forum Posts by: Reed Rickenbach

It was very stressful when the market was going up 20% YoY - as someone who plans to be in RE long-term. Felt like the "skilled" part of investing lost its advantage which I had worked on building. I agree - very happy that good operations will pay off now.

3 Votes

Agreed. I think there was originally a chance for 50bps, but given the recent volatility they will land at 25pbs. In general I think most agree that no hike would be bad (now that everyone has seen what runaway inflation can cause).

1 Vote

I started with $2,000,001 at 20 so I hope you can manage.. may be tough to get the ball rolling but you'll get there.

1 Vote

Kansas City, Kansas

As a local I plan to buy here for the rest of my life. Be careful on your areas.

2 Votes

Nothing to add here other than saying I love my annual trip to 30A. It's the best!

0 Votes

New Orleans, Louisiana

Asking a question that bare would you really trust if someone just said yes? Is the mortgage balance $100k or $1,000,000?

1 Vote

Quote from @Account Closed:

Quote from @Reed Rickenbach:

Quote from @Account Closed:

Quote from @Reed Rickenbach:

Echoing off of what @Charles Carillo said - I'd try to find some sort of gap funding to double-close this deal so that you can accept financed offers.

Yes, be prepared for the buyer to view every unit and confirm financial info.

Find some rental comps in the area & comparable multifamily sales on a per-door basis to send along with the deal. For example - 123 Abc St. (12-unit, same zip code) sold for $75k per door in August of 2022. Average rents for comparable finishes & sqf are x.

Give as much info as you can but expect buyers to do MORE due diligence on larger deals, not less.

In regards to confirming all financial info, what certified financials should I be getting from the seller to provide cash buyers? An income statement? Rent roll? APOD?

At a minimum - rent roll and a trailing 12 month report of rent collected vs. operating expenses. A list of capital improvements done in the last 5-10 years would be good as well.

Beyond those listed items, I believe I need to get “proof of leases at close” correct? Basically copies of all tenants leasing currently and proof of what they pay and agreed to? Anything else that may be missing?

Yes but it just depends on your buyer. They'll tell you what they need. Be prepared to get all documents - AKA don't falsify anything to get more buyers interested.

0 Votes

Boston, Massachusetts

Quote from @Account Closed:

Quote from @Reed Rickenbach:

Quote from @Account Closed:

Could I pull this off in an assignment of contract? I don't have the funds personally to close. I have 15 days inspection I offered. If I source a cash buyer within 7 days, I could provide 7 days to a cash buyer to inspect fully assuming they provide a matching EMD to escrow before they inspect. If they don't like it at the end of 7 days that would leave me 1 business day to get my $25,000 back

I just bought a 6-unit from a wholesaler and I had him get gap funding to double-close on that day because I didn't want to purchase with cash. Look into it - plenty of gap funding out there. IMO this is not enough of a due diligence period for multifamily but you could find a cash buyer, never know.

I’ve never done gap funding. It’s a resource I need to figure out but is valuable for sure. But if my sales agreement says cash purchase and my assignment is to a buyer who wants to double close like you, how would I be able to back pedal? Just get gap funding and close and then have someone like you purchase after that?

what’s the benefit of a wholesaler like me gap funding and double closing though? As a means of closing on the property not cash which is what’s listed in the original sales agreement between me and the seller?

You closing with gap funding would be the same as a cash purchase. It is just like closing with hard money - seller doesn't know the difference.

If your end-buyer (the one you're selling or assigning the property to) doesn't want to close with cash, that's the benefit. You can assign the contract if your buyer is closing with cash. If your buyer needs financing, you can only make your spread if you double-close.

0 Votes

Boston, Massachusetts

All Forum Posts by: Reed Rickenbach

Reed Rickenbach has started 4 posts and replied 188 times.

Post: What would you do with 1,000,000

Post: I need a Memphis TN realtor willing to help me find buyers that didn'tqualified loan

Post: Is this the best or worst time to get into real estate?

Post: The fed meets next Tuesday. Lets talk about it.

Post: 2 million, starting out

Post: Anyone buying in the Memphis market ?

Post: Orange Beach/Santa Rosa Beach

Post: How much cash should you have before you buy a subject to?

Post: Looking to wholesale a 12 unit turnkey multi family?

Post: Looking to wholesale a 12 unit turnkey multi family?