All Forum Posts by: Cory Cox

@Michael Roetzel - I second what @Pete Harper said right there!

That's a lot of sound advice as far as the permits go.  Sometimes it's easier just to bite the bullet and have a GC pull one for the whole site and be the builder on record.  If you want to do some of the work yourself then negotiate that with the GC and go from there.  But keeping one project at a time "open" when the inspector arrives is very smart!

@Jay Hinrichs - lol!  Yeah, if I had that type of capital I probably wouldn't want to make that type of trade.

Hope you are doing well!

@Jay Hinrichs - For sure!  I do a lot of business through them and refer a lot their way as well.  I'm sure they will eventually cap me at some point but not yet!

I've actually got goals for the coming quarter that I need to start developing relationships with some HMLs.  Would rather have that connection already made then be sitting on my hands waiting and need it ya know!

@Rene Smith - 10% is pretty typical from what I see unless you have a stable relationship in which 8% can be negotiated.

Also, I do a minimum fee of $80 dollars per month for the ones I manage as well.  This prevents it getting super low as far as the management side goes.

For MF, there are no set standards.  It can just be negotiated.  If you have 4 $500/m units, I'm not going to charge $320/m for that but we lay out all the terms in the beginning as far as vacancy and day-to-day goes.

Hope this helps!

@Mark Rogers - Well, my last 2 did not thanks for COVID.  1 was hitting the market the same time everything basically shut down which pushed everything back and the other pushed me back because I was having issues getting contractors to the house because they were being dads for kids being out of school and all the madness with that.  Wasn't ideal for those flips but I understand that may be a once in a lifetime type event.

My other projects have been close to the deadline I set for myself.  Regardless I allotted plenty of room for my loans so I could get a stable tenant in before I refi'd.  My bank was actually really good with me to go back and add additional funds to my loan as well because of COVID.  My foundation estimate I originally received pre-purchase was extremely low and all the other COVID effects caused my repairs to sky high.  They rose my funding up about 10k which helped for sure!

I'm sure your hard money lender may be the same way as they don't want to be left with a house to attend to but I'm just going off my personal experience.

@Frank P. - I consider closing costs to be "the price of doing business".  I've always said that and I wouldn't let 5k hold me back from making a deal work if everything else is working in your favor.

You just showed a quick snapshot of your calculations and as I mentioned, I don't know your area and what's out there.  That would be for you as the boots on the ground to determine if this is a solid deal or not.

As for me, I'm in a low priced area and with that being 5k, I'm still moving forward.  I frame that as negotiating with a seller and we are 2k off from an agreement on price.  Over 30 years, it's small potatoes.  Shake hands, write it up and enjoy.

@Jake Lefort - Welcome and congrats on your first "gifted" rentals.

First off, I know people will talk about work/life balance and although I agree with what they are talking about, I don't believe you can just shut it off at 5p and start it back up at 8a.  That's not possible (for me at least).  If that IS what you are striving for then a property manager is your first must have.  They will be able to handle it all and send you the bill.  Get your spouse on board with whatever your plans are for the future is a must!  What's their goals, your goals and marry the two.  Based off that conversation is whether you need to cash-out refi, sell, pay down the debt, etc.  All the other specific questions you are asking need to be addressed AFTER your family is on the same wave length moving forward.  Once decided then get more specific.

You mentioned you're "scared ****less".  My question, are you truly SCARED or are you excited?  Same emotions essentially but it's just the context you give to those emotions.  I would believe it's exciting on what the future could hold not being scared.  Try and use that mindset/verbiage moving forward when you speak and it will help level your emotions later.  How you speak to yourself is how you act.  Speak high.

Congrats on your "gift" and your start to a new world.  Get clear on your goals, surround yourself with good people and be amazed of where life takes you in 5 years.

Good luck

@Ferris Anthony - This seems like a real broad statement.  Everything can add "value" to a home.  Appraisers will take into consideration everything from new electrical wiring, flooring, roof, etc.  But a buyer/tenant may "value" more new paint, appliances, location, etc.

If you have a more specific question of does this or that add more value then I can give my opinion but I'm not a licensed appraiser.

Good Luck

@Frank P. - I calculate closing costs as part of the acquisition numbers in the beginning.

I'm unsure of your market and how this compares to the others currently there but it looks like a decent deal.  Couple things right off is you are getting a long term loan at 3%.  Can't beat that!  If it takes 2 years to get your money completely back then that's not a "loss" as I assume you are saying.  Your money is still in the property and if you plan on keeping that house for a while then your first 2 years is nothing in the scheme of things.

Utilities - My tenants pay all utilities.  I know there are several that pay for the water for their tenants but I haven't had an issue with this as in my area everything is grouped up.  One company handles it all and makes it easy on them.

Also, cut that tree back in the front yard.  Could cause issues later on!

Good luck!

@Hobart King - What insurance carrier are you with?

My girlfriend is actually the territory manager for the entire state of Arkansas for State Auto.  I have ALL my rentals through that company and they are awesome to deal with.  Best Price, Awesome Service!  I know a few others investors in the Alabama area and I know a few of them use State Auto but I'm unsure of the others.

Reach out if you need a good local contact and I'm sure I can help you out!

Good luck