All Forum Posts by: Wade Wisner

So what is your exit strategy - long term hold, sell and 1031 to a larger property, or other?

I am currently looking for fix-n-flip properties in the coastal area of North Carolina.  If you are wholesaler in this area contact me back. 

Thanks, I have been doing the same thing in VA eastern shore where I moved 2 years ago. I have found a few decent deals, but pretty hard to find value added or undervalued property. I keep looking though.

Where are what are you seeing in Baltimore?  I previously owned rental apartments and houses in downtown and have done fix-n-flips there as well.

Good to hear from you Steve.  Prior to 2008-09 I thought that I had a magic wand and could turn turds into $$$'s.  I was a very careful by-the-numbers investor and did not think that I was ever taking unreasonable risks.  I used leverage very carefully and always knew that it could be very dangerous.   I just did not know the whole story, which turned out to be that in a very down market lender's pull back funding if they can and with calls in commercial real estate loans it is quite likely they will.  I had never missed a payment and had millions in total loans, so I thought that I was safe.  My contact with the Bank - a senior commercial real estate VP - told me repeatedly that all looked good for the renewal of my loan - not so.  All in all I lost several million in the Great Recession.

In rebuilding I tend to live by the adage that "cash is King" and I have repeatedly made money on deals due to having cash and being able to move quickly to purchase. I sleep so much better at night with knowing that I owe no money to anyone.  What really excites me is by managing and growing cash I am moving into the area of seller financing, and it has been very lucrative.  I love doing things that Banks will not (or no longer do) do to help mortgage borrowers.  It is a great space to be in and if I need to borrow today it is with seller financing, not Banks.  So much easier as more and more property owners are understanding seller financing and willing to be the bank themselves.

I really doubt that I could change staying in cash that now if I wanted to, and I really don't.  Yes, leverage can increase returns, but cash can also bring bigger returns as well if utilized property.  I read the young Buck's posts and feats of furry, and I can only hope that they get to keep their rewards for the long haul. Wade

Unless there is a really good likelihood that the property will through off cash flow, or another good reason to purchase I would not buy it.  Typically, I would want at least and 8% return on cash, or higher if leveraged.  As an investor in a rental property positive cash flow is all that you get - no use, or other benefit of ownership.  Drive-by rights are just not enough!! 

Thanks for the information Matthew.  I have done lots of investing in Baltimore when I lived there, but never really considered Phil.  I do have a son-in-law who recently invested in a laundromat in Phil.  I really like to keep a close watch on my investments and living within access to them is the best way to insure the property performs to my standards.  I think that I have had enough big city life and would probably not want to live there as I have not wanted to return to Baltimore even though I could probably find many investments there too.  At this time in my investing life I am a smaller market guy. Thanks again.

I am looking for my next real estate investments.

I have been doing fix-n-flips for the past 5 years or so, but that market seems to have dried up. I am looking at more LTR of SF, MF or commercial properties in markets that cash flow well. I prefer under-valued, distressed, poorly managed, properties needing updating/rehabbing in markets where I can buy at a discount and build equity and cash flow for my time and investment. In addition to being a long-term real estate investor I have been a commercial/res appraiser, historic property renovator/contractor, property mgr and more so I don't mind properties with issues as long as they are fixable and priced accordingly, and my investments are all about the numbers (NOI/Equity).

I am trying to determine what markets to search. For my money and having had a number of properties there I think that FL is too boom/bust. Maybe some mid-sized burbs in NC or VA? Want to stay in the middle of the country – not too far north or south. I am wanting to stay under $1.5mm. Any realtors or investors with ideas. Your assistance is appreciated. Thanks for reading.

Thanks Robin,  the information is helpful and very comprehensive.

Hey Andrew, Thanks for the info. I have not had any lender financing (other than seller financing) since about 2009. I have been in cash since the Great Recession where my lender on a commercial property completely and unexpectedly called my loan in 2009. Needless to say there were no other lenders out there at the time and it was either sell or bankruptcy. It all ended up ok, and we got out with our hide, but it all cost me over several million of my equity. I am rebuilding my real estate portfolio and exploring my options about using debt - very carefully. I fully expect to put in 20% - 25% deposit and have good credit. I just do not know what financial products are out there today as I am sure much has changed. The DSCR was mentioned to me, but I do not know the ins and outs - upside and downside. It is either stay in cash, or take on some debt?