All Forum Posts by: Ali Radoncic

Hi J,I’m reading your book, “the book on flipping houses” and had some questions about marketing as you mentioned websites, etc, in one of those chapters.
I currently have a handyman website, but want to convert it to use wording that conveys I want to buy distressed houses. While I know I probably don’t want to say “I want to buy run-down houses,” how should a site look and feel?
Do you have examples of investor websites you can send me, that are professional and convey to homeowners I can “solve their problems” as you say?
Along those lines, instagram and other social media campaigns that can drive traffic to that great site?
Thanks a bunch,Vr,Kevin Nichols, Tennessee

 Unfortunately, I don't see it being #1 or #2. 

I'm in really good shape on #1.

If it is #2, there was more than enough time to correct my expectations.

#3... Well she sent me the final estimate @70% and said nothing. It was Friday evening. We were trying to get this closed by Feb 29. She requested it signed by Sunday so processing could resume asap Monday morning. Had she given me a heads up early Friday, and maybe accompanied the 70% with the 75%, then discussions could've occurred. Instead, it was slipped in without explanation as if I wouldn't notice??

I'm leaning towards #3. There have been other hiccups along the pathway. 

You'd be disappointed if you knew the company.

I will try to keep this brief.

I have 100% equity in a single-family rental outside of Detroit Michigan. I am in the process of doing a cash out refi. The house appraised for a little more than what I expected. The lender's representative and I had spoken about 75% LTV all during this scenario.

Now yesterday, I was surprised with a lender estimate that was at 70% LTV. When I requested she run the numbers at 75% LTV, she then told me that there was a cap on the amount I could get (amounts to under 75%), and I would also have to pay points for that loan (75% LTV scenarios were at 0 points). This is several thousand dollars less than I would've gotten at the full 75% LTV, but she claims it is a Fannie Mae requirement?

Why this wasn’t disclosed long ago, I have no idea. Is she correct in saying this? The difference in the appraised amount versus the expected amount was not gigantic. However, I don’t intend on refinancing this property again - possibly ever. So I would prefer to pull all cash out that I can this time.

TIA for opinions/info.

@Komal Sekhon with prices and interest rates as high as they are, making LTRs work is a challenge to say the least. The #airbnbust is real. Declining rates and demand coupled with excess supply is making the STR business harder than ever. Not to mention AirBNB is catering to local regulations, politicians and the guests these days. The host / investor is getting his / her butt kicked on multiple fronts.

People are selling or converting STRs into MTRs. Now the MTR market is getting crowded quickly. The MTR strategy also requires a little more effort to source tenants. Not a good platform like AirBNB or VRBO to source tenants for you. So it requires more networking, relationships, marketing etc. to find good tenants consistently.

There may be an opportunity in the next few years in the multifamily space. Increased interest rates over the last 2 years and increasing cap rates have put downward pressure on multifamily values. If interest rates come down or cap rates compress or both, that will increase values. Timing that pivot perfectly is a challenge, but might be some opportunities there in 2025.

As an agent and investor myself, the only thing I've found that makes the most sense in today's market in Atlanta is..... PadSplit aka rent by the room aka co-living is the most exciting thing I've seen in real estate in years. The affordable housing challenge is out of control. Millions of people need a safe, clean and affordable place to live. PadSplit is making it possible, even in today's market, for investors to provide much needed workforce housing while making a great ROI. I'm actively converting STRs to PadSplit. As well as buying more properties and helping my investors do the same. They started in Atlanta but are now in dozens of cities across the US and expanding.

When I was introduced to the concept I had tons of thoughts and questions. Happy to answer those for you or anyone else.

@Jacob Hancock: Listen bub, if you can accumulate $500,000 cash by the time you're 25, you don't need us. We'll just slow you down. Just keep doing what you've been doing and you'll be fine.

John, just curious, what's a virtual wholesaler? Haven't heard that term before.

Tenant lives in a 2bed/1bath apartment. She was given two weeks to clean the place. She removed a lot of stuff, but this is the end result.

She is very nice, pays like clockwork, communicates well, and never fusses. 

Would you renew her lease, or terminate? Why?