All Forum Posts by: Stewart Morrison

My wife and I partnered with a family member. We are working out how to fairly distribute the cash flow so everyone is compensated. We have never partnered before and have been talking about this with our new partner for years.

This is the deal:

345K SFH

100k from the partner, (68K DN Pymt, 32K rehab)

He is only an investor in the equation but wants to be a partner not the bank. Which is completely fine with us.

We are doing the leg work and daily management of the rental.

This is being used as a Sober Living House. Our first of hopefully many.

The cash flow when occupied will be in the neighborhood of $3500 to 4K with an 85% occupancy.

How would you structure the payout? The plan is to get this home seasoned and do a modified BRRRR moving forward to rinse and repeat.

What have you done in similar partnerships?

Thanks BP!

Stewart and Nanci

We have been using naborly as a part of our screening process for around 18/24 months. Over the last 2 weeks we are getting no responses and no communication. In the past they have been very helpful. We have tenants waiting on our decision and we can not move forward.

Are they still open? Is anyone else having issues with them? 

Thank you!

Stewart

Hi All
Can you please advice me where can I find all possible forms on BP. It used to be under file place under the tools bar. I cant locate it . Is it gone?

Thanks Y'all from GA!

Stew & Nanc

We were so excited we came to the meeting a week early (3/23/21)! So we're getting a preview of the menu and supporting our host!

lol, let's make it a date night instead of a business night!!!

Currently we invest exclusively in Griffin. The price points are right for us, local contractors are reasonably priced and their are an abundance of renters. The down side is these are old homes typically needing a good bit of work. The initial rehab focuses on making the property bomb proof. The tenants are D class renters (in our area) and require extra headaches in and of themselves.

This is the area we got started in. Would I invest in Griffin,GA today? Yes, for us the numbers make sense. I would research a good property manager and work closely with them. In fact it would be a good place to start searching for your first property they typically have a good bit of local knowledge. We do our own management, which at times make us crazy.

Good luck, and regardless where you purchase CRUNCH THE NUMBERS! Measure twice cut once.

Cheers

Stewart

I was house hacking a 2/1 SFH in Georgia. The house burned and was a total loss (right after a full reno).

Which leads to two questions.

One when can/should I cancel home owner insurance? It paid out the policy limit. So the policy is basically spent right? I haven't ask my agent yet I wanted an unbiased opinion.

I know to keep liability until I do something with the property.

Second the house would take about the same as It will be worth to rebuild. So I'm unsure if I should just buy a like property and save the headache then sell the burned property and walk away. I have already cannibalized the property and used the hot water heater, stove etc in other rentals. 

Thanks in advance for your thoughts.

Stew and Nanc

We buy houses at this price point. We have basically begged borrowed and stole to get what it took to seal the deal. Lending club is a great horrible choice! lol We've done it, just know its high interest and get it paid asap. Our silver bullet has been a small local bank that understands our market. We have been able to use them for several deals. Open an account and start building the relationship even if you don't use them for this deal. 

We'll be in Memphis over Thanksgiving man am I looking forward to the BBQ!!! Rendivue here we come!

Sounds Great! We've needed this! I'll be there.

What I have to work with is two paid for properties in Griffin, GA.  in a C neighborhood.

Property 1, has been re-habed and currently rented for 750 per month. With a current value of about 32k

Property 2, needs re-habing and will also rent for $750 once completed. This property has a ARV about 32k as well.

My goal is to finance the re-hab as well as buy a second rental in the same market. I’m seeking a total of 40k. I’m estimating the re model will cost 10k (so plan for 13), and the additional property about 17K with around 10k re modeling.

I’m unsure if I should seek two loans one for each house or bundle them together. I’m not seeking hard money for this project, just don’t see it being cost effective for this project. Just need some input. Being inexperenced I don't want to drop the ball.

For back ground these are my first two rentals. Again I’m moving slow trying not to get in a mess early in the game.

I've owned both since August 2016

I have ok credit nothing to write home about, 650/680

About 5k liquid.

Thanks

Stewart

Has anyone used NEXTACE.com?

If so do you trust this report just like a title search? Seems to be the same and its $30.