All Forum Posts by: Andy Kurtz

Thank you all for the recommendations. I've reached out to Tim, but have yet to hear back. Brad - I've read some of your prior posts, and have you on a very short list of PM's I'd like to interview. It seems your firm manages mostly SFR's and 2-family's, which is my target. If you have any additional recommendations, please reach out again.

Thank you Emily! What firm does @Tim Macy work with?

Greetings to the SA BP Community

I'm an investor from the Boston area, and have zeroed in on San Antonio and the I-35 corridor. Primary goal is for buy and hold, and wouldn't be opposed to the BRRR approach. I have capital, and a little knowledge gleaned from BP, but am in need of boots on the ground. Anyone have recommendations for an agent or PM?

Cheers

Andy

Good morning Scott - I am a broker with a national correspondent lender, and know the Southcoast area well (looking to invest in Fall River myself). If you would like to connect, feel free to PM me.

Thank you both for the eloquent explanations. Speaking with an attorney is a must, but I am struggling with an appropriate starting point for partnership negotiations. We would likely set up an LLC, which we would have a proportional stake in. As for functions, my partner would handle every aspect of the rehab process, whereas I would do everything else (ie: creating systems for tenant screening, leases, paying bills, obtaining additional financing, etc). Property management is up for debate at this moment, my preference would be to hire a PM. I have some hang ups of doing a pure 50/50 split, when I bear 100% of the downside risk.

Greetings to all. I'd like to partner up with a GC on the BRRR method of investing. I have about $200k liquid ready to invest, but can't spell hammer, let alone swing one. My GC, whom I have been friends with most of my life, is eager to begin rehabbing rental properties, but has little money to invest. My question is, what suggestions does the community have for structuring such a partnership, where one party brings the funding/analytics and the other is the boots on the ground with little funding in place? What % of equity is his expertise worth? Thanks for your input.

Thanks to all for your input. I'm well aware that the guidelines/costs for financing 5+ units is a different ball game. The issue of this being a long distance away is a very good point I hadn't considered. For someone getting back into the investing game, managing the logistics of a log distance rehab would probably be a bad idea.

I've found a potential deal, but I don't know what I don't know when it comes to investing in 6+ unit buildings. Found a bank owned 6 family in a rural C+ area in New Hampshire. Property is boarded up, and needs massive rehab. Electrical and roof are newer, which is a nice plus. The bank recently dropped the price by 50%, to $50k. Assuming a rehab of $20k/unit, the rents in the area would make this a cash cow, as the units could each fetch $750 with ease. My concern is, I'm afraid there's a hidden surprise that would only be uncovered by performing an expensive environmental cert. My questions are twofold - #1 - what are the worst possible pitfalls that are typically missed by the naked eye? #2 - is there a way to tell, through public records, if there's something buried underground that would cause a problem? Thanks for your input.

Thank you for the insight. The property was just recently listed, hasn't been more than 14 days on market. That said, the price hasn't moved an inch. While we are not forced to have an on-site property manager, I would likely have to hire one. Factoring in 8% for a piss poor property manager will sting, and could be the deal breaker. As I evaluate my options, I may try to wholesale this deal, make 2.5% - 5%, without the tenant headaches.

I've found a potential deal, but when I ask myself 'what's the worst that can happen?', I get spooked. Here's the details - 16 units spread across 4 buildings. All roofs/heat/water are new within last 5 years. 11 units are rented, 2 are vacant, and 3 need to be rehabbed. Rehab costs would be approx $45,000. Neighborhood is a blue collar C area. Crime rates are very low, but the properties in the immediate vicinity are blighted. The town has approved nearly $1 million in grants to renovate these eyesores, though I do not know specifically what that entails. Current operating income, with the vacancies, is $110,000 annually. Expenses approx $30,000 Asking price is $900k, however I learned the owner owes only $120k. He is selling simply because he's burned out, and would like to retire. I did not float the idea of seller financing, but it given the equity position, it may be a possibility. What I like about this deal is, the major cap ex's have been handled, and there is still meat on the bone to increase the cash flow by filling the vacancies. Maybe I'm wrong in this, but when I look at most opportunities, I ask myself if I could male the debt service payments if the property was 100% vacant. For deals up to $350k I could, but this is a different animal. What also makes me pause is, even though this is a small rural town, there is another seller trying to unload an 11 unit complex, who sounds equally as motivated. Makes me think there is more to this town's story. I'm also not a huge fan of my first deal being a 75 minute drive from my house. I'd almost be forced to hire a property manager, which at 8% becomes dicey. If I can get owner financing, I may jump on this (or even wholesale it). My question are twofold: are there any blind spots I am missing when evaluating this deal? And am I nuts for taking the mini/max approach to any deal I evaluate? Thanks to all for your input