All Forum Posts by: Asa Ifill

Hello BP family, I hope this post finds everyone well! 

I am in search of a commercial lender who will refinance a storage facility in Arab, Alabama. We are looking to capture about 65% LTV of the property's current equity. The facility appraised for $812k in April of this year before completing any renovations. Since then, we have renovated the property and are looking to get a maximum loan amount of $500k to keep a good bit of equity in the deal.

If you've worked with or know of a lender I can speak to about this situation, please drop their name or contact info below and I will reach out to them asap. 

I know rates are higher right now which isn't too much of a problem, but every lender I've spoken to already will not cash-out refi, they will only refi on a fixed rate/term.

Thanks in advance for the help!

Thanks, 

Asa Ifill

What's going on BP family, I hope everyone is doing well! My team and I have recently purchased a smaller 103 unit self-storage facility with two apartments on site we will also rent out. We purchased this property in April of this year and are at the final stages of renovations on the interior/exterior of the building along with the apartment spaces.

At this time, we are sending out our rent increase letters to inform the tenants of our rent raises to be somewhat close to the current street rate. As you know tenants will not like the rent increase which will most likely cause them to leave. Does anyone have a recommendation on a lead source for new tenants? I have heard of Sparefoot, but they are not very consistent/cost-efficient in my experience using them?

Currently, we are using WebSelfStorage as our management software to record payments and store tenant info. With our current monthly income at this facility, WebSelfStorage was the cheapest option. Does anyone have any recommendations on a management software they can vouch for? 

Thanks, 

Asa

 Hey Andrew, I'm a local real estate investor/agent in the Huntsville, AL market. 

Would love to connect! 

@Joel Florian Thanks for jumping on this thread Joel! Yes sir I did, and he's working magic for me. Shoot me a DM for his contact info!

Thanks,

What's going on @Aaron Kawamoto! I will live in Hawaii one day! Congrats on completing your cash-out refi! Now it's time to purchase another property. I am an investor/realtor in the Huntsville, Alabama area. You are 100% correct on the job growth coming to our city. Facebook data center, FBI coming to the Redstone Arsenal and Amazon just put out their statement of adding a fulfillment center to the Madison area - this will bring 500 more jobs!! 

Yes, the Huntsville market is hot. But that doesn't mean there isn't any deals to be made on the MLS. I've seen several properties go within the last month that could potentially hit your 1% rule while gaining some sort of return.

QUESTIONS TO YOUR ANSWERS:

1. Yes, you just have to keep looking, it will not jump out at you.

2. Knowing what I know now, I would probably purchase property in the same area I did a year ago. I purchased a triplex in Toney, AL about 1-15 mins away from Huntsville and 5 mins away from the new Facebook data center! Toney, Harvest, Athens, Meridianville, Hazel Green and lastly, Decatur. These would be some markets I focus on for the next year or so since the Madison/Huntsville area is growing in price and forcing people to move outward into the areas I mentioned above. 

3. Some lessons I will share with you is to network, network, network. Find a good pair of boots on the ground here in the Huntsville area and gain a connection with them. They will be your best bet of purchasing a home in the area since you are OOS.

Good luck and I hope to connect with you soon!

Thanks,

Welcome to Real Estate investing Matthew - I would HIGHLY recommend HOUSE-HACKING! Since the prices of homes are so high in California, purchase a home you can afford with your pre-approval letter with the most bedrooms you can find, then you live in the master and rent the other rooms out to college students, young professionals, single people, etc.

This will help you break even for your mortgage payment/could potentially make money each month. The whole thing is you want the tenants to cover your mortgage + expenses! 

Good luck and shoot me a DM if you'd like to chat!

Thanks, 

Hello BP fam! I am in the process of starting to build a multi-family dwelling in the Huntsville, Alabama area (Toney, AL) to be exact. I already have several different plans to complete a 2-6 unit dwelling without garage bays. 

I am looking for builders who have built any multi-family new construction dwellings in the past and anyone who may have some insight on how to tackle this project. 

With lumber prices being as high as they are, I see us running into some issues with the budget and may have to pivot some regarding building material. 

Also, has anyone had any experience in using modular homes? I've heard some talk about this but do not know the longevity play of using them. 

All criticism accepted!

Thanks,

What's going on Shakir! Welcome to the investing world, it is a pretty exciting time now in the Huntsville market. I'm an investor + realtor in the area. 

I would love to chat more to see how my team can assist you - looking forward to speaking!

Thanks, 

Hi Sully! Congrats on the big move, Nashville is a nice place! I'm actually right down the road from you in Huntsville as an agent. 

Hitting a new market will most likely hinder your leads but don't let that stop you! Since houses are flying off the hinges there, maybe you should look for some "listings". This could be a great way to acquire leads + referrals. Order business cards and go door knock your neighborhood within a 2 mile radius and let everyone know that you're an agent. 

Once doing that for a month and hearing 99 no's you should get 1 yes. Think about if that one "yes" turns into 2 referrals? 

Also, I would 2nd @Antoine Martel's statement about using Propstream to find leads. Using propstream, you can filter your list to target owners who have owned their home for 5+ years and that have a lot of equity in their home. 

Hopefully everything works for you, stay focused and good luck!

Thanks, 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Toney.

Purchase price: $70,000
Cash invested: $45,000

PURCHASE PRICE: $70K
RENOVATION + HOLDING COSTS: $45K
ALL IN: $115K

Purchased this property from the seller with owner financing at 15% down and 5% interest a month - this brings my monthly payment to the seller around $630 a month.

We are house-hacking one unit of this property and renting out the other two units. The other two units rent for $750 a month and $1,000 a month. After expenses and maintenance we roughly cash-flow $600+ monthly on this property WHILE STILL living here.

What made you interested in investing in this type of deal?

House-Hack BABY!

How did you find this deal and how did you negotiate it?

Facebook Marketplace

How did you finance this deal?

Owner Finance

How did you add value to the deal?

Roof, HVAC, flooring, paint, etc

What was the outcome?

$600 cashflow before refi