All Forum Posts by: Sherri Behrendt

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Harris.

BRRRR to B x 2
LTR

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

Location, location, location

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

Driving by and saw a for sale sign that wasn't on the MLS yet. Used my RE license to access before other showings and made a cash offer on the spot.

How did you finance this deal?

Cash, then cash out refi.

How did you add value to the deal?

Completely gutted 2 of the three units to make modern Airbnbs. One unit had a 13-year LTR, which we left in place without rehab.

What was the outcome?

6 months to rehab as it was hard to get contractors with no notice, so we did much of it ourselves on weekends. Popular rentals doing well, now. Medium-term renters for off-season.

Lessons learned? Challenges?

Hire out more of the work if you can to flip faster. Don't spend as much to rehab and electrical was a shock compared to the rest.

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

Yes, Kris Foddrill was the listing agent out of Ames, IA.

Hello BP, 

I am a newer member of BP and have been working on a potential unlisted deal for most of this year.  The owner is now willing to sell both units as a package for $5.6M and is 146 doors, together.  Both are 100% full with a waitlist.  The owner is willing to sell to me before others are interested in the property but he needs to know today.  I don't want to lose this deal so I intend to get it under contract and then look for partners for at least 20% of the deal.  I just closed on another investment, last week, and thought this deal was dead so the timing is tough that it is moving so quickly, now.  The Cap rate is close to 10%, but that depends on PM fees and the rents have the opportunity for 2-5% per year, which I don't believe has been happening each year.  There is also the opportunity to have more utilities to go to the tenants.  I would love to partner with an experienced person to learn from while we add value to this deal.  Any advice on how to proceed the best in this situation would be appreciated.  I will get it under contract with investor/credit approval contingencies, today.  

I am a new investor and a newly licensed RE agent in Iowa, so looking to learn from seasoned investors and am aggressive in what I want to achieve in the near future.  I have also ran a $50M+ business with 200+ employees, so business isn't new to me, but RE investing is.  

Thank you

Sherri

Hello Bigger Pockets Forum, 

I just bought my first lake house for Airbnb and personal use in Clear Lake, Iowa. We intend to pay cash to get the deal and then finance to free up cash to reinvest in other properties. We have an LLC for this property and my long-time bank understands what I am wanting to do to lock in 30 year fixed instead of 20-year business with ARM. My lawyer said to ask the bank if they will not exercise the due on sale clause to transfer to our LLC after closing in our personal name? Bank says they can't take that out or can't sell on the secondary market.

Any suggestions on how to do this without issues? I will increase our insurance umbrella until I can get it in our LLC name, but if you have any suggestions that help accommodate this process, please advise the best avenue to pursue.

Thank you

Sherri Behrendt, Behr Assets LLC