All Forum Posts by: Cale Snyder

Also, anyone know of any crowdfunding sites that you can post development ideas like this to? Always good to have a theoretically infinite pool of investors to pitch to :)

Hello all, hope all is well. I have noticed, and verified through research, that there's a supply shortage as well as a market "gap" for middle to middle-upper income nightly rentals in a neighboring town from where I live. After thinking about it and talking it over with my wife, we feel a 15 small house "community" would best meet the need for this, tap into the "small" trend, and keep utility expenses low to maximize profits. It's in/near the mountains and close to various attractions like the Tryon Equestrian Center and Pisgah National Forest, so we feel a full-on hotel wouldn't do the area (or travelers staying here) justice, and that individual cabins would be best.

Now when I say small, I don't mean the stereotypical tiny house on wheels, but 400-640 sq ft cabins on crawlspaces. Eliminates permitting hassles as well as the option to sell them individually should this not pan out.

I'm in the process of finding an investor/partner to help get this project off the ground, but am unsure how to structure the deal. I'm leaning toward doing an equity share and creating a limited partnership between myself and the investor(s), but don't know if that's the best way to go about it. I have a meeting setup with my attorney to talk about it, but wanted to get input from people who might have direct experience with something like this and what lessons were learned.

Any and all input is appreciated! Thank you in advance!

yeah, I figured that would be the case. I was mostly hoping there was some other way I didn't know about that wouldn't be breaking the rules. But my wife and I talked about it and we aren't going for it. Like @Thomas S. and @Mindy Jensen said, there'll be more deals out there. Not worth it to take such a big risk.

Thank you all for the honesty :)

Hello all! I'm hoping someone can help me out with the situation I'm in right now and quickly as this deal probably isnt going to be around for long. 

Yesterday my realtor found a great property for a great price that my wife and I would like to rent/airbnb. It's a big 2000 sqft house that could easily be made into an upper/lower duplex, plus there's a 1 bed/1 bath guest house behind it. Has a big pool, hot tub, deck, and is in an area where property values are going up fast. 

Issue is, I'm in the middle of my second flip and most of my money is tied up in it. Therefore, I don't have the cash on hand to do a full 20% down payment for an investment mortgage. My investor doesn't want to do an ownership stake either, so I'm in a pickle. I know it's wrong, but can I claim this rental as my primary residence to get a 5% down but still stay in our current home? I have an llc I could deed our current house to in order to make it look good on paper, but like I said I know it's technically wrong. 

Any other ideas? Really don't want to let this place slip by and I'm sure if I don't move quickly it will. Thanks in advance!

@Ray Lai

Thank you very much for the detailed reply! Really great info and I appreciate it very much.

You're absolutely right in that I haven't done much research into the basics of direct mail or much else as far as finding deals is concerned. It's an area I didn't necessarily want to get into right away and have a realtor helping me instead, because I would rather save money on the rehab by managing it and doing some of the work myself as it's my area of knowledge. But it's becoming more apparent that I need to be doing more on the supply side than expected because even my realtor is having a hard time finding deals. Not to say we aren't finding places that are good candidates, but that they disappear before I can move on them (had a townhouse that had been on the market for 1.25 years lined up, but the weekend before I was going to make an offer it had 4 offers come in over asking; just a crazy market like I was saying).

I contacted my county assessor and they are making a list of properties that have absentee owners for me. I'll also start driving for dollars too at your and Bob's recommendation. Hopefully that will give me a good list to start with.

Thank you both for your info and I'll get moving on this area right away! Hopefully it'll prevent this lull in work from happening again.

Sorry, kind of new to this. I'm assuming driving for dollars is just driving around looking for for sale signs or FSBO signs, right? As far as direct mail, 9 chances out of 10 there's a bunch of other wholesalers, flippers, etc already papering the hell out of this area with this market. Not trying to make excuses, just don't imagine that I wouldn't have much of an edge. Are there ways to be "better" than others in direct mail? Like using some direct mail service or advertising company? And good point with wholesalers. I only have one right now.

Thanks for the reply!

Hello all, I just finished my first fix and flip in Roebuck, SC and am having trouble getting another flip lined up. The market in upstate SC is insane right now so it's perfect for flips (had 4 offers on this last flip after 2 days on the market). But because it's so crazy that means the inventory for other flips is really competitive or, from what I've seen, nearly non-existent.

So, my question to you is, how do you go about keeping your supply line full so you can pop from flip to flip in a limited supply market? Granted, there are properties in the not-so-great part of town that would do well as a rental or possibly as a BRRRR type, but not good enough for a pure flip. Plus I'd like to stick with flips in this strong of a market and to build capital quickly with my business being so new.

Any and all ideas/recommendations are appreciated! Thanks in advance!

Hello all! I'm in the process of trying to buy my first flip property and have an interested private lender to help finance the project. However, it's also his first time lending on a flip (he focuses on rental loans), so I'm wondering if you have any insight on how we could structure our agreement so it's mutually beneficial for both of us. 

Right now we are talking about having him provide the funds to purchase the property, while I do all the rehab work and selling (just like a bank, I do the leg work, he provides the money to do the project in the first place). Would a basic percentage split of the profits between us be ok? Or is there a better system others have used? I intend on borrowing from him again should everything go well, if that changes the approach.

Thanks!

@Andrew R. Lucas Good call on the ceiling tiles. There's a small area where there used do be a wood stove chimney going through it that I'll have to fix up, so that should give me a good opportunity to check out what's under them. It would be great if there were slats or the like under them!

And you read my mind on the paneling and the character. Just wasn't sure if there was a general rule out there with flips when it comes to paneling and ceiling tiles.

Well, fingers crossed with the ceiling! Thanks for the insight!

Thanks for the input! I'll do some digging, but being that it's rural South Carolina I'm pretty sure people won't mind much. Regardless, sound advice that I'll put to use to be sure I'm good to go.