All Forum Posts by: Adam Sharp

Hi BP - I am a commercial RE developer in Seattle by day and will be moving to Chicago this summer.  I am looking to do some personal projects that include light rehabs to full teardowns in Wicker Park, Ukrainian Village, Bucktown, Logan Square etc.

I am looking for a GC to work with in the area that can help me quickly evaluate sites and help inform my investment decisions.  I would then obviously hire them to execute the work.

I have pooled together several sources of financing and am ready to execute I just need support from a GC to help me navigate permitting and renovation costs.

If you are that person or know who might be a good fit, I would love to talk to them.

Any help / advice would be greatly appreciated :)

Thanks,

Adam

@Nathan Gesner - do you by chance have a Lease termination acknowledgement form?

Hi BP - 

My tenant just provided notice to terminate her lease on my condo in Seattle, WA.  The lease reads that rent is due though the following month and a 1mo charge is levied.  I am holding 1mo security deposit currently.

So she paid OCT rent, and per the lease should pay NOV rent ($2k) + 1mo fee ($2k).

I know she is just going to walk and not pay the additional rent or fee ($4k total)....why wouldn't she?

What should I do?  And how should I approach it with her?

My assumption is if she does not pay the contractual amounts above, she will be in breach and I keep the deposit in worst case scenario - but that leaves me on the hook for any damages, downtime, and finding a new tenant.

I know the answer is there is probably nothing you can do (aside from sue her).  But does anyone have any constructive advice on this?  I'm sure it happens all the time but this is my first rental and first time in this situation.

Thanks in advance!

@Mason Hickman thank you. Question. I have been licensed in the past but always worked for commercial companies (CBRE/C&W) and never had direct access to the MLS. Im 30d out from reactivating my license and getting access to MLS via managing broker Pellego. Does MLS access provide a more complete comp set than Redfin/Zillow? Where can i find / what do i need to do to get the best data on comparables in the resi world? On the commercial side I used real capital analytics (RCA) which was super reliable....is there an equivalent on the resi side?

Hi all - I am curious if anyone has any tips / tricks when comping out the exit price of flip projects.  Are there any resources or trainings that you would recommend?  I would like to get smart on this so I can really evaluate opportunities and create some confidence when evaluating opportunities.

Thanks in advance!

@Jason Hirko what do your clients look for on a return compared to their initial cost basis?

Thanks guys - good advice.  This seems to be the result of every property I have looked at unfortunately.  

Sounds like I need to work to refine every line item i.e. find better deals, shorten turnover time, reduce commissions etc.

Hi team, I have been analyzing deals for 6mos and haven't pulled the trigger on a flip yet. Primarily this was due to the fact that I didn't have the right pieces in place (LLC/Lender/GC/Broker/etc). Those pieces have been solved for - so now I am really digging in and ready to execute.

My issue now, is determining when the math makes sense to hit the "GO" button.  I have included my spreadsheet below which I would LOVE feedback on.  But here are my questions.

- What ROI do you view as acceptable for a "GO"

- Is $10k net before taxes enough, based on $110k cash in, to move forward?

- How do I get comfortable with unforeseen risks (sewer problems, unknown foundation issue, roof etc) that ay come up once I crack into the walls?

- I cant figure out how to get my Net large enough to provide the comfort I need to cover these unforeseen costs/risks

I guess my overall question is - am I being too risk averse? are these standard returns? Is my model flawed in the way I am looking at opportunities? And how can I change my lens/optimize my model to increase the Net?

When I look at this - my biggest kick in the gut is the commission piece on exit, so I am getting my license renewed to reduce that - but I think the questions above still warrant discussion.

Appreciate the feedback in advance!

Thanks!!

The rule of thumb in Narragansett is you should get the same per week during summer as you do per month for the academic calendar.  So if you have a waterfront 2bd that rents from Aug-May for $2k/mo; you would target $2k/wk for the months of Jun-Sep.  Hence the reason you would only do a 9mo academic lease.....capitalize on the peak season short term vacation rentals. 

Hi - looking to buy another property that will be a rental home and I ahve come across the concept of the 10% down "vacation home" loan offering.  I have been told opposite information from different lenders and am having trouble finding a definitive resource on the subject.

Lender1: "Vacation homes" cannot be rented, if you acquire a vacation property with the intent to rent you are in violation of the loan, the loan could get called, and you risk foreclosure and a derogatory mark on your credit.

Lender2: "Vacation homes" can be bought for 10% down and you can rent them right away.  You have to report the income if you rent over 2weeks of the year but as long as you personally use the property for a set number of days you will remain in good standing.

Which is correct?  I know I am opening a grey area can of worms with this but any advice would be appreciated.  

Thanks in advance!!

Adam