All Forum Posts by: Charlie Claxton

Hi BP family,

I haven't been on much lately, but today I am back for advice.  Instead of calling my attorney and letting her tell me how dumb I am (haha), I thought I would reach out here and see what my fellow investors can tell me.

The situation: one of my companies provides housing (short tern, furnished) to the film and television industry.  We have a pretty big number of units here in Georgia as far as corporate housing goes, but every once in awhile we get a unit that is a loser in terms of our clients liking it- so we turn them into long-term 12 month rentals. Well in this case, we have a 2/2 loft in west midtown Atlanta- we posted the usual marketing for the unit, and we took applications from a few tenants but none that passed our application process (we can be picky when we have spent significant capital furnishing units)  . Well after about a week and half a broker came to us, representing a gentleman that does music production and said that his client would like to lease the unit. His client passed the application process, signed a 12 month lease in January and it is now march and his client is breaking his lease and refuses to pay (we have already sent demand letter and are moving to eviction process- we will end up with a judgment which we will sale at a later time). But we paid this agent $2,000.00 (they kept the first month's rent) to bring us this client, they assured us that if the client did not fulfil their lease, then we would be refunded their leasing fee.... They have not responded to text or emails with us asking (not demanding) the fee back.. We thought we would prorate the fee, let them keep a prorate amount of the 2K that is equal to the two months out of 12 that their renter paid....No reply from them... My question to the BP community is, WHAT DO I DO? If I bring my attorney in, she is VERY expensive so basically she would eat up the some-what minimum amount (2K).... In Georgia, aren't realtors required to abide by certain guidelines?... I would love to hear anyone's thoughts or feelings on this situation.

Hello BP family,

We are looking to network with local and regional capital partners that are interested in making a debt or equity investment in value-add multifamily real estate assets here in Georgia.

Our returns range from 10%-30% IRR depending upon property type, risk, location, and deal structure.

Generally we will purchase the property, and then seek outside investment for rehabilitation capital of the asset, then utilize contacts with several charities to fill the asset before we refinance or auction the asset (depending upon the predetermined goals of the investors)

Generally looking to network and discuss a few deals we have in the hopper, and taking down this summer.

All the best,

Charlie.

Hello BP Family,

Deal:

2 bed/2 bath turn of the century cottage

Quaint gingerbread Victorian home with lots of character situated in the heart of Atlanta's historic Inman Park. The property is located two miles east of downtown. It is within walking distance of Krog Street Market and numerous popular restaurants, shops, and parks. Close to Marta station and I-85/75 and the Presidential Library. This is an opportunity to obtain one of the few homes available in one of the most desirable and hottest neighborhoods in Atlanta on a shaded street with sidewalks. Two bedrooms, 1 ½ baths, spiral staircase, skylights, stained glass windows, front porch with old fashioned swing, deck on back leading to fenced in large yard. Wood burning fireplace with antique mantle, original hardwood floors, high ceilings, oversized original windows, large laundry room with washer and new dryer, ceiling fans, large foyer (leads to upstairs loft bedroom), lots of closet space, and claw foot tub. Dishwasher, disposal, gas heat and central air conditioning, views of downtown skyline, and rare off street driveway for extra parking!

Asking $449,900.00 or best offer.

And investor could add an additional 1,500 sqft onto the rear of the home to bring it up 2,777 sq ft. This would bring the comps in at 880K-890K.

Hi Guys- sorry for slow reply. My schedule has been nutts lately.

to answer james question- yes we have used HUD before (HUD 223F), but the average property that we do will have a hard time on the PCNA report for the HUD loan, as these are much older assets and we are usually focused on stabilizing & filling them. We typically focus on making sure major systems are up, and then begin unit upgrades on a rolling basis.

And thanks for the suggestion guys- I have emailed Sean. I look forward to having the conversation with him.

Good Morning David-

I agree with the poster above, I would actually see it as unfair to not include your family member in the profit sharing, as he has just as much if not more to lose in the case of having the deal go south and having his credit ruined. In the past, we have made credit partners a part of the deal and thus profit sharing. Just my opinion, hope it helps.

Congrats man! Flipping is a great scalable business where you can do 1-5, or 1-50 a houses a year.

We use Appfolio for all of our rentals. We can't say enough good things about this software, although there is a learning curve in learning to use the software. It makes tenant interaction (using portals) seamless. And we can watch all the complexs online , anytime.

Hey BP family,

I wanted to know if any of you guys have done this, and if so- what has been your experience? We have done it repeatedly, but we have only met a handful of investors that do it our way.

* Buy a VALUE-ADD multifamily asset (40 units +), using cash (private capital) or control the site using short term land contract. These assets normally are in need of a capital improvement campaign and/or a serious management turnaround.

*Using investor capital, we will capX the site, and stabilize the site with new management and using connections with various charities to get the property to 85%-90% occupancy.

*Once asset has been at stabilized occupancy for 6 months, we will either refinance or resale the development via online auction. - which earns our investors a 12%-20% return on their investment.

Here is the question for the BP family, - Has anyone in the BP family successfully refinanced a multifamily land contract into a new commercial loan, if so- where did you get the best terms, time frame, out of pocket, requirements, etc.. We are looking for a new perm refi- financing home for our multi deals. Most of our deals are here in the Southeast.

Thanks everyone!

Hey BP family,

Had a question- lately I have been somewhat on an alternative funding research kick and I came across a company that none of my flipper or commercial development friends know. I was wondering if anyone has ever done any business or closed deals with DoHardMoney.com (Or DHM Financial Services)? If so, what was the outcome, etc.

That's awesome Laura!

In regards to rehab funds- my suggestion is to move ahead with hard money ( make sure you budget 6 month to a year of payments on this money for construction and sales cycle). Most hard money lenders that cater to flippers will lend 100% of the rehab cost of a project.