All Forum Posts by: Chris Mooney

Great thread here! I lived 8 years in the Poconos when I was younger, beautiful area!

But to take the conversation a different direction, what would happen to the values of all these STRs in the Poconos if STRs were banned or became heavily restricted? Is there a thriving LTR market in the area? I'm always thinking about a plan b with STRS, and the Poconos seem so dependant on tourism vs. a larger city like Philadelphia, where you could easily convert your property to a LTR. 

Thoughts?

Hi all!

My fiancee is inheriting proceeds from the sale of a large family commercial property. She's on the llc as an owner, so she'll be able to 1031 her portion into another rental(s). She's looking to inherit around $800K. 

We're looking to buy a few mfh all cash. So if we're investing $800K, for sake of this question, we'll say we can get 4 duplexes (around $200K each). We roughly estimate we'll make at least $3600/month cash flow. Does this seem like a good ROI to you all? Eventually we'll pull out equity to invest more down the road, but want to just stabilize and get the cash flow for now.

What would you all do if cash flow was your goal in this scenario?

Thanks!!

Chris

@Randall E Collins keep pushing! You can get it done. Reach out to Bryant above!

@Bryant Brislin is the real deal! Great guy to collaborate with. I'm wholesaling on the other side of the country and Bryant has helped me out big time! Send him the deal and he'll help get it closed!

Hey all!

I recently just learned about the "fix and list" strategy. To my understanding, this is where a rehabber would agree to a price with a seller, then cover all of the rehab costs, and when the home is listed for top dollar in the future, the rehabber recoups their expenditures, and then splits the profit with the seller. This avoids having to pay closing and legal costs on the front end. So in theory, for $40,000 into a rehab (or any random number for example) the rehabber can double their money, or earn a pretty profit on the backend. 

Has anyone tried this strategy or something like this? Is there another name for this? Does this sound like a good offer to a rehabber? 

I'm a wholesaler, and trying to figure out a way to close more deals, while putting more money in the seller's pocket, while still providing value to end buyers.

Thanks in advance!

Chris

Thanks to everyone for this great input!

@Bill B. it is being structured as a gift. And it's so last minute because this is just how her family operates. She had been promised for years to be added to the LLC, we're shocked it's even happening.

@Bill Exeter Thank you for your questions and insightful input! She's being added now because the family just does things backwards, there's no better reason for it. This is something that should've been done years ago, but hey, we play the hand we're dealt.The goal is to allow her to inherit half of the proceeds from the property, rather than her brother just gifting her hald afterwards. Unfortunately, even if this isn't the wisest strategy, her dad calls the shots over the LLC without being on it, and its his way or the highway.

@Dave Foster thanks for the great input as well! This seems like a viable option and a financially savvy option. I will bring this to my fiance to discuss. The biggest issue I see is that her brother is a royal pain, and she'd likely rather take the tax hit than have to negotiate any real estate with him moving forward. But I will bring it to her anyway.

Hello all,

I'm in an unusual scenario and wanted to get some guidance from the BP community.

My fiance is being added as a member of an LLC that owns a residential and a commercial property, both of which are in the process of being sold.

Once the properties sell, she and her brother will likely dissolve the LLC and go their own ways with the proceeds of the sales. Ideally, we'd like to 1031 the proceeds into one or more multifamily properties, but don't know if we can, since one of the rules is that the same entity must own the property being sold and the new property being acquired.

We will find a QI and a CPA to talk this over with, but wanted to hear what some of you would say to this interesting scenario. 

Thanks in advance!

Chris

Hey all,

I wanted to revive this convo with a question of my own. I just spoke with Navy Fed about doing the IRRRL with them. I could save a whole percentage point, saving me $232 per month.

I plan to keep this property for a while, as I'm in a booming area with very limited supply just north of NYC. I'll eventually move out and this will become a rental property. Are there any downsides or anything to consider given that its currently my primary residence, but in 2-3 years will almost certainly become a rental?

@Rich Ramjatan thanks for this input! I've experienced a shortage of good plumbers here in Beacon first hand. But when he told me a year and a half, that was shocking! Seems like there is opportunity for good GCs like yourself to come upstate and fill a void!

Hi all,

One of my buyers I'm representing as an agent is concerned with buying a property that requires some rehab ONLY because a friend of his bought a property in the Adirondacks region and says he won't be able to hire a contractor for repairs for a year and a half due to their long backlogs of work.

Has anyone heard of this long wait time for contractors in the Hudson Valley? I've been looking with my client specifically in Kingston, but he is now pretty cautious about his original plan to BRRRR a property.

Thanks everyone!