All Forum Posts by: Cassidy Burns

Welcome to the Forums!

Harrisonburg and/or the I-81 Corridor is my investment "territory" as well. From SW Covington, VA up to Winchester, VA is where I focus.

I also work as an agent in the DMV, both markets have been great to me.  Both very strong markets

Happy Investing! 

@Ankush Ratwani 

Welcome and good luck! 

Very good points @Patti Robertson ! You have motivated to call my bankers this morning! 

Thank you.

Hey @Jason Grimm i'll reach out! 

@Patti Robertson

@Patti Robertson conventional financing is great , but in my opinion to be able to scale, having access to the "faster money" would be very beneficial to scale up the business IMO.  

Thanks for the feedback @Stephanie P.

Good Morning BP,

I'm curious if anyone else is having trouble finding Hard Money Lenders that will lend in smaller Rural towns? I Invest in rural SW Virginia in Clifton Forge, Covington, and Hot Springs Virginia and have had an awful hard time finding hard money guys that will lend in those areas. I am around 40 miles outside of Roanoke, VA.

I've done around 15 deals in this area over the last 1.5 year and the margins are great! But have had trouble scaling.  

Curious if anyone else is having this issue?

Happy Holidays ! 

Hi @Wayne Brown there are deals all over Washington DC you just have to be patient and prepared to pull the trigger once they are presented.  I agree with @Russell Brazil becoming more specific with your criteria/ realistic with you criteria will help you in the long run.  Remember, we invest in real estate for the long term, so look 5-20 years down the road, not 1 year.  Unless you are a wholesaler/flipper of course.  

Good luck! 

The Daughter is currently living "rent free" as her property management fee.  She covers her utilities.  Takes care of management, maintenance, lawn care, etc.  

That apt, once she no longer lives there will rent for $800/month.  Bringing the monthly income from : $6,250   to $7,050.  And then the $500/month increase to the industrial lease in June brings income to $7,550.  

I am just thinking in terms fo the refinancing / resale in 5-10 years. So if I do "buy" at the $800,000 purchase price that is a current 5.6% cap rate.  If I resell at that same cap rate the value is no $1,082,142 based on the $30,000 (40%) expenses.  

Just wanted you have to have more details!  Thanks! 

Happy Holidays BP!

I am putting together my first Seller financing deal and I wanted to see what you thought of the terms.  The seller and I have already discussed this a little but wanted to get some feedback before officially offering the terms:

The Property: 

-4 Unit Multifamiliy Building w/ 

-2 Industrial Warehouses on the lot as well 

-Currently rented for $6,250/month $75,000/annual w/ a $500 rent increase coming June 2019.

-Gross Annual income $80,000

-Assessed Value : $977,300.  They recently got it appraised for 1.3 million.

My Offer to the sellers: 

-Their daughter is allowed to live in the property as the onsite manager for 3 years as long as terms of lease are withheld / management is held to high standard (this is their largest concern and why I can get for such a good price.)  I know this has some red flags but any advice on wording of language is greatly appreciated.

-3 Options: 

-$700,000 purchase price 

-$50,000 Down payment

-6% Interest

-10 year term w/ option to extension.  No prepayment penalty 

-$750,000 purchase price

-$25,000 down payment 

-6% interest 

-10 year term w/ option to extension.  No prepayment penalty.

-$800,000 purchase price

-$0 down payment

-6% interest 

-10 year term w/ option to extension.  No prepayment penalty.

I do think they are going to take the $800,000 purchase price.  The property is pretty much turnkey and has all long term leases.  They manager has been increasing rents 3% on an annual basis which is a great sign.  

Thoughts?

Thanks!

Congrats on jumping in!  I suggest house hacking in the Washington DC to most/if not all of my first time home buyers, great way to mitigate /eliminate costs in a higher price point market.  Zoning will be key in your home search, certain neighborhoods are going to be more favorable than others.

Good luck!