All Forum Posts by: Bob Woelfel

The rent you can achieve might be the single most important aspect of it for you, but it doesn't mean it is for everyone else.  I'm sure a lot of people do exactly what you are describing, but instead of renting all the units they choose to live in one and let the other tenants cover a part of their living expenses.  Why pay $3,000 a month in rent when you can own a completely renovated building, with equity and only pay say $2,000 a month?  While this place may not "cash flow" either now or in the future, it certainly has given the owners a leg up on where they would have been had they not done the deal.  

I would agree with @Nick C. on this.  Your ability to find deals will really be the driver of anything here.  If you can source great leads and find deal flow then potentially the sky is the limit.  

@Danny Price you might be paying a little too much or you might not.  If these lines are unsecured by the property then it's a little different than the typical lender/rehabber type loans out there.  What is the security the lender has on these deals?  It sounds like you have experience, but that level also plays a role.  I'm sure you could do better, but if you are happy and your investor(s) are happy then what's the difference?  Maybe at 12% the investors walk.  How long have you been doing this with them?  If you have a track record of a couple years of successful deals then you probably have enough equity with the investor to negotiate.  Good luck.

This is exactly why we require people to have some of their own money.  We are a lender that does loan 100% of purchase and 100% of rehab costs so in theory someone could buy using no money down or out of pocket.  BUT, we also require that they actually have some cash on hand to pay for interest payments every month or cover overages.  Newbies shouldn't be borrowing money to pay for the payments of other borrowed money.  People with experience or who have cash reserves can do this because they understand the risks and actually have the money to cover themselves.  

Saying that many people do deals this way may be true, but it doesn't mean it's the best course of action or most risk averse for someone who it sounds like is still learning the process and doesn't have the basic structure yet figured out.

@Yu Chen Sorry for the delay.  I really can't speak too much about the area as I'm not super familiar with it.  I don't own any property there nor have I driven the neighborhood.  I probably can't tell you much more than what you could find out on your own in that it's not a Blue Springs, Lee's Summit type area nor is it a rough "D" neighborhood either.  I think the proximity of the new Cerner complex has certainly helped drive values, rents and investment in the area.  Good luck.

@Darin L. is it an unsecured line they just throw in your account? Our auctions here in KC you have to have POF in your account to show the auctioneer (Trustee) to be allowed to bid. Once you win, the money has to be wired the same day most of the time. Without knowing the exact situation of what groups like SoFi.com offers I really can't say. I have not looked into them.

@Yu Chen congrats on your first deal.  Hope you can get it to the finish line.  I have a local lender in KC that I can recommend if you run into issues.

I do not have any firsthand experience with Bridge as a buyer because I live here in KC and I don't buy turnkey.  Nor do I have any firsthand experience with other turnkey companies other than what folks say about them or my brief interactions with them.  With that said, my dealings with Nathan, David and others on their team have been nothing but positive.  My company has sold a few properties to them and my broker and I have sold a few for them.  I think they do nice work on their rehabs and from what I've heard if something isn't right they do their best to make sure it is.  They hold a monthly meetup here in KC and are a very active and forward facing group.  Yes, they are trying to meet buyers/sellers/investors and grow their business, but it's evident they also try very hard to bring value and help others.  Not all are this way.  

With all of this said, now that you've found a provider it's still up to you to do your due diligence on each property, know the numbers and make sure it's in an area you want to own long-term.  I wish you the best of luck.

@Trayon Simms yes we do transactional deals in almost every state....all but 4 actually.  Since I don't know where these properties are I can't say definitely, but PM me and we can talk if you want more info.  

You might have to explain the situation with the title company, but I would imagine they would be able to get this done without too much of an issue.

Oh, so you are buying these from the broker listing, but it's owed by the bank and you want to use their title co to close?  I understand if thats the case.  

I think it's going to depend on the bank and depend on what you do with the properties.  I would imagine if you do a bunch of these deals and all you do is sell to someone else they will eventually have a problem with it.  They might even right away.  Now if you buy some of these and hold them or actually rehab and flip them, but you also sell some that don't meet what you are trying to do I doubt they would have an issue with that.  This is somewhat of a unique situation that really just depends on the parties involved so I don't know that anyone is going to be able to give you a definitive answer.  Can you close with them and use a different title company to sell it?

@Trayon Simms why do you have to use their title co?  Is it your banks title company or the buyers?  I guess you could always just call them and ask a hypothetical question.  My guess is that it won't save you substantially on closing costs, but I understand wanting to save it anyway. 

If you are looking for transactional funding for these types of deals I'd be happy to discuss.