All Forum Posts by: Austin Jones

Appreciate the response, and totally agree on #4.  I knew the risk in pulling the trigger on that stuff and balanced it with the desire of wanting to have the property ready to rent as soon as possible to capitalize on summer rates.  As you reference, everything including furniture, docks, etc is super backlogged and in order to grab a hold of the whole summer we needed to make those purchases now. 

Regardless, thanks for the sanity check.  

I'm trying really hard to not put on my tin foil hat, but here's the situation:
We are under contract for a lake house in a VERY hot market (Lake Hartwell, SC/GA).  Houses are listed, immediately a multiple offer situation occurs, and are under contract over ask.  It's wild, and we missed on a few deals before finally getting under contract.  It was weird when it happened because the house was listed in the middle of construction but would be sold completed.  No big deal, in this market we were hopeful this may drive a few offers away and up our chances.

We got under contract and construction progress is REALLY slow.  I'm legit concerned that it won't be done before the close date.  Normally I wouldn't really care, except I have this sneaky suspicion that builder (who is also the seller) is slow walking this to get it to fall through.  Important construction tasks are not being done, vacations being taken, documents not being provided that are normal and I need for my lender and stonewalling my agent.  My agent informed me that our property is probably up 10% from what we're under contract for a month ago and we have a over a month to go until closing.  She said it's not unheard of for less-than-reputable agents to use this as almost a hedge in rapidly increasing markets.  Essentially get under contract in a hot market during construction of a spec property, and if the market keeps accelerating do something to get out of the contract and be able to re-list when the property is complete assuming a greater price.  Flip side, if the market cools off you've already go your contract in place. 

I feel like a crazy conspiracy theorist here.  I'm typically pretty even keel and this is certainly not my first real estate deal.  The whole thing has felt "off" from the start but I chalked it up to listing agents being lazy as hell when houses are flying off the shelf instantly.  

So the questions are: 
1) Is this a real strategy or is my imagination just running wild.  It's pretty genius.  It's a real a-hole move, but its genius I'll admit.  
2) Do I have ANY legal recourse if this happens?  I obviously would get my earnest money back, but we've been dropping cash on other things along the way (dock, furniture, etc) in order to be able to use this property as soon as we close.  What in the world do I do with a dock an no lakehouse haha?  

Thanks!

Hi Blake. I have a STR in Myrtle Beach area (Garden City/Murrells Inlet). Feel free to reach out with any specific questions you have.

@Philip Mullinax Hey Philip! I own a beach house down in Garden City. Shoot me a DM or ask any specific questions you have here.

Cliffs notes is that there are better options in REI to make money, but this one pays for itself and my family and I have an off-season place to go.

@John Underwood Thanks for the offer to chat.  I’ll reach out if I have any SC specific questions as you appear to be the expert!  

The property is down at the beach so no worries on the STR ban.

My wife and I have identified a property we are interested in.  I reached out to the sellers agent directly to get more information (YTD income, 2019 income, backstory on property, current market insights, etc).  I'm considering asking the sellers agent to also be our agent if he'll agree to a reduced commission.  My thought is that it'll allow us to make a lower offer if it's clear up front we're saving the seller money on his agent's fees from say 6% to 4%.  Is there anything I'm missing out on by going the dual agency route?  Any risks I'm unaware of? Seems like I've done all of the legwork and just need someone to drag it across the finish line.  Is that really worth $15-$20K?  

Thanks and no offense to the agents here ;) !

@Luke Carl Thanks for the insight, and I apologize if I worded that poorly.  What I meant to ask is "Does anyone know approximately how much those services will run me in that market?"  I didn't want someone to come quote lawn care and pool cleaning.  I'll call vendors when it gets to that. 

Sorry for the confusion!

I'm currently evaluating my first potential STR vacation property at the beach: 1st row single family home with a pool and a small yard. Curious approximately how much lawn and pool care costs in the area if anyone knows? I know the pools are cleaned more often than non-beach properties since tenants like to get in sandy, I believe 3-4 times per week.

Anybody have a property in the Grand Strand area that can help me ballpark it would be greatly appreciated!  Just trying to build as complete a picture as possible.  Thanks!

Yes @John Thedford I will be 100% liable for this $25K loan.  My partner in the investment will bring his own $25K to table for a total of $50K.

Thanks @Scott England.  I understand what you're saying.  From a pure investment standpoint I know it's lower than what the market would demand.  A few other things of note:

- This family member is my Grandfather, who also owns the company that I run. He knows that I can pay him back even if I take a loss for the entirety of the 3 years because he signs my paycheck! Our main business is very successful and growing, but I'd like to also build some income separate from the company, hence REI!

- I could easily pay the principal off in three payments if you think that would be a more attractive option. 

- My underlying driving force is to provide a decent return for a family member who was generous enough to offer.  Honestly I don't think he even expects interest, but I'd prefer to provide him a return as a gesture.