All Forum Posts by: Wendy Stclair

I invested in 4 properties from CR of Maryland in June of 2022 in various parts of Baltimore as part of a 1031 exchange taking $$ out of California. I knew it was a risky bet as Baltimore has much crime and systemic issues they can't seem to overcome. But i was in a pinch with a 1031 and had been advised CR of Maryland has it all figured out. They offered some decent closing incentives such as 1% back at closing table and 6% property mgmt for a year, 1 year warranty, and i THOUGHT rent assurance for 1 year (found out later they'd changed to 3 months only).  Also property taxes were incredibly cheap at $500 / year (expected to go up in about 3 yrs). The prices were certainly higher than i would have thought for marginal neighborhoodsn ($200-$230k)  but i thought eventually it would work out. Rents are pretty high in Baltimore ($1500- $1700 for this sort of home). CR had put significant $$ into renovations so these row houses were really like all new - roof, appliances, gutted throughout etc. it was understood that many of the rentals would be Section 8 which is a good secure investment. Upon closing with CR of Maryland, two of the 4 houses were rented fairly quickly at $1600 or so for a $200k house. The other two however have remained VACANT for 3 and 7 months now!  The issues seem to be Baltimore Gas and Electric takes forever to do an inspection - 3 months sometimes.  CR will cover rent assurance for 3 months but beyond that its on me. i'm now 7 months vacant on one property and i'm told the city has denied the application for Section 8 b/c there are "too many vacant properties" in the area. So i'm frustrated to say the least. CR has a team of property mgmt folks but the names and stories change. I'm increasingly UNHAPPY with their approach and lack of ability to get things done. So i would be hesitant to jump in with them if anyone is considering it. 

@Brad Hunton thanks for the awesome update here. it was great to read the journey and see the advise. i'm in a similar situation as you, had 5 rentals and this year sold my priciest one 1031'd it into 4 SFHs. My immediate cash flow will jump $380/mo on one home to $2000 on 4 (1 of them was a cash purchase to meet 1031 needs while the rest are about $300 ea). This plus the others will get me close to $5k /mo cash flow which is exciting! The last two i'm buying this year i'm afraid i'll have to put at 6.5% interest which will dampen cash flow a bit.  Hoping i can refi those in a few years.  I have one other high value property i can take cash out of if i want in 2023. Trying to work while doing this is a bit exhausting I find - just chasing lenders, insurance companies, finding properties, and the 1031 was super stressful for me! the 45 day window killed me and scared me back into turnkey as i just ran out of time to find good deals. Anyway thanks for sharing!

I agree with @Genna Golden and several others who have had mediocre experiences with them. They have AMAZING online videos and learning resources, but getting a HUMAN on the phone TO ANSWER A BASIC question is impossible. I've been a client for three whiney years. I feel like I'm the cheapskate always questioning every over-priced thing they recommend to me. I learned early on my "strategy advisor" really didn't want to talk w/ me unless I was ready to plop down another $2500 for whatever he was selling that day. Going with them delayed my taking action in RE as i suddenly felt like i needed to get a PhD in asset protection and corporate structure just to get started. I have learned A LOT in the last few years, much of it from their online events and they do have a DAILY 4-5 pm "office hours" where you can ask a question for free of anyone. But when it comes to YOUR STUFF you get relegated to a meeting 30+ days from when you request it. After you are "in" with the $2500 platinum service its $35 / month. They frequently offer learning seminars with partners on a topic or another, but at the end there is ALWAYS a "BUY NOW OR LOSE IT FOREVER" pitch for some spendy program you're not sure is worth it. They do my taxes and this is a laborious process that takes 8+ weeks to get a draft back to you and they are booked out months in advance. And you AGAIN dont get to talk to a human - just "submit your completed form" to them. Every LLC is $1500 and i am always paying $750/ year for I can't figure out what - some corporate structure thing. I'm not a fan. But i went with them initially because everyone in the RAL space (i was looking into assisted living) was SO IN LOVE with them it was crazy. So i thought i was the one with the problem. Anyway, 3 years later and I'm shopping to move!

@Kay Kim I also have two properties at Bennah Oaks in the works with the Wagner Nolasco team, and a condo at Nathi Townhomes in Palm Bay.  I work with Norada also. I visited the site last week and dirt has been broken but nothing vertical yet.  So far they are still hoping for October for phase 1 there. The townhome should be delivered in July so hopefully if that is on track we'll have a better idea about Bennah Oaks! I also met the Wagner and the Nolasco team in person in their Orlando office, and they seem to care about delivering a quality product in a timely fashion.  

Hi - i'm a single investor looking to immediately find 1-3 SFH or 2-6 multi-families in Class B- or better neighborhoods for a 1031 exchange. Looking to spend up to $800k total (debt and equity, can be split between 2-3 properties). Must identify ASAP, this week really. Final deadline end of may to identify. Criteria includes: 1-3 BR units that are still cash flow positive after a loan, in a landlord friendly state, rented or able to rent immediately. Some fix up is ok but I require properties to have been properly zoned and permitted, and that most major fix-up areas not an issue aka: solid electrical, plumbing and foundations. I prefer no major HVAC issues, newer roofing. I realize I'm asking for a diamond in the rough but you have to start somewhere! Plase reach out to me if you have ideas or areas i should consider! thanks much.

I've done 4 or so DSCR loans in the last year. Most lenders want a lease in place prior to closing. If the rentometer price is much lower they don't like it but a lease is proof they can lend on it. Many of my properties the rentometer says they can only rent for $850 but the property mgmt team is promising $1295. These are turnkey properties so i'm not sure what magic trick they have up their sleeve. The only other thing is the lender will require your insurance has a 6 mo rental guarantee on it.

I like Patrick at Aloha Lending in Colorado. But they don't lend in all states. Blake Rivers at Lending One who is also on this website seems to have some decent progams too. Lastly Sprout Mortgage I'm told does some but I've not used them yet. Both are not offering rates in the 5's at all however so if you have anyone offering ANYTHING under 6.4 please let me know!  

@Colleen F. you are correct! After i thought about this i realized that was likely the case and started looking it up. I think it is NOT legally a duplex and that right there is an issue I won't be able to get around.  I cancelled the contract this morning. Live and learn! Thanks 

Im stuck! Its my first time buying a non-turnkey property and the inspection report has many things that are giving me pause. Looking for advice - i'm told the seller will entertain whatever requests I have. The market is Savannah, houses are selling fast, this one has been on market for 90 days. Its a 1925 bungalow converted to a duplex - sort of! Price is good for a duplex and rents are stable but the house is marketed for double what the neighbor homes (all SFH) would sell for.

Inspection report challenges as follows... 
While the foundation and most of the wood work seems fine, there are a number of "old house issues" 

- HVAC is not separated by unit at all -only 1 controller in 1 unit,  and HVAC and AC units are 16 years old. 
- only 1 Electric service panel with 100 amp svce - some unapproved attic splicing done it appears
- roof 15 years old
- water supply and drain waste piping uses old galvanized water piping that is subject to leakage (drain pipe is actually leaking to crawl space!) 
- all windows are painted shut  

I will likely ask for some sort of concession or replacement for all of these items, and was thinking at least for HVAC it would be better do on my own terms rather than his choice. Are there things that are standards here i should be aware of? Like is a duplex really a duplex if you haven't separated the HVAC or electrical in any way?  Are there codes i can site where things are NOT up to code that the seller must do?

Any gotchyas? Thoughts? Is this just a mess? thanks much!

I totally agree on 5.25 being no problem, but 7 feels like a bit of a game changer - at least for me - and its likely to go much higher before year's end. I have been buying houses the last 2 years at 4.5 - 5.75 as i'm non-traditional and the numbers have worked great. Right now i'm hoping to lock on 6.5% with buying down points from 7.  And these are 5 year pre-pay penalty loans. If you are a turnkey provider you know the cash profits your clients hope for are often no more than 8% a year and if you reduce that by half it feels like a big deal to them. I realize Californians have been buying property for years at a loss but being from Colorado that has NEVER been my path. Who wants to be upside down monthly in hopes of appreciation some day?   undefined