All Forum Posts by: Cory King

 this. if someone bought in the last year they're likely struggling. this will become a tale of the ideal guest. the "destination" cabins with features like game rooms, pools... will be the stay of choice where large groups can go gather and the cabin is the reason they're there and not to stay quickly to go hike and stay. guests will be seeking a unique stay. i love Kai Andrew's model of buying land and building in his equity. utilizing tents, yurts, storage containers that he can subdivide and get more stays out of one place. that's what i'm currently working on developing

high season is the spring and fall. summer is a steady state with consistent travel into the area. jan-feb is a ghost town and drastically slows down. that's when everyone does their big maintenance items

There's certainly an inventory uptick, largely new construction. This area has sustained 2 major wildfires in the last decade or so, so we're rebuilding lost inventory at a rapid rate. Overall total revenue is up for the area, which is being spread around a bit more. Leading to at most an average of 9% decrease in individual revenue. Severville, Gatlinburg, Pigeon Forge is set in the most visited national park in the country, nearly 15mil visitors per year, which is nearly the rest of the top 5 combined. Those that may be in trouble are those who bought at the height of the market last year and likely have overpaid for the asset. A nearly 50% revenue drop is simply untrue. 

Terribly cherry picked data w no sound backing. My friend Morgan did a great dive into our numbers here in Sevierville. 

 1000% you're dead on. This is terribly inaccurate data. My friend Morgan did a great dive into this. 

Investment Info:

Single-family residence buy & hold investment in Chicago.

Purchase price: $175,000
Cash invested: $100,000

My first historic remodel and I sure learned a lot. After diving into it we quickly discovered extensive termite damage not able to be seen on any inspections. That added around $30k in additional framing/foundation repairs needed. All new plumbing, electrical, hvac along with surface level updates. Thankfully we could also preserve many of the original features of this home. Keeping as a student rental where I receive $3200/mo gross income.

What made you interested in investing in this type of deal?

I love historic homes and wanted to take on a project as an investment and learning opportunity

How did you find this deal and how did you negotiate it?

I had the listing originally. Traffic was a little slow as it was summer 2022 and rates were rapidly rising. Seller was an investor and motivated to move on from it so I made an offer to buy it myself.

How did you finance this deal?

Private money and my own cash

How did you add value to the deal?

Extensive remodel including new plumbing, electric, hvac as well as complete remodels of bathrooms and kitchen.

What was the outcome?

Worked out a cash out refinance where I was able to recoup a majority but not all of my invested cash, leaving about $40k in the deal which is ok with me bc I wanted to ensure a certain cash flow rate. Still yields a net 18.9% cash on cash ROI. Cash out refi and holding for $1000/mo in cashflow as a student rental.

Lessons learned? Challenges?

Tons. My first historic project so I knew there'd be surprises. Didn't expect it be extensive termite damage, but it is what it is. My timeline was aggressive to start so next time I'll take things into account and plan upwards of a year to complete. Prior to purchasing in 2022 when rates were rapidly rising, I did underwrite this deal at upwards of $100k in costs and 9% interest and it still penciled out. Glad I did bc that's pretty much weee I ended up.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Self represented as an agent: loved working with Steve Levine as my private money lender locally.

Investment Info:

Single-family residence buy & hold investment in Chicago.

Purchase price: $175,000
Cash invested: $100,000

My first historic remodel and I sure learned a lot. I expected it to initially take 4 months & $50k or so to quickly update and turn over. 11 months and $100k later we're wrapping it up. After diving into it we quickly discovered extensive termite damage not able to be seen on any inspections. That added around $30k in additional framing/foundation repairs needed. All new plumbing, electrical, hvac along with surface level updates. Thankfully we could also preserve many of the original features of this home. Worked out a cash out refinance where I was able to recoup a majority but not all of my invested cash, leaving about $40k in the deal which is ok with me bc I wanted to ensure a certain cash flow rate. Still yields a net 18.9% cash on cash ROI. Prior to purchasing in 2022 when rates were rapidly rising, I did underwrite this deal at upwards of $100k in costs and 9% interest and it still penciled out. Glad I did bc that's pretty much weee I ended up. Keeping as a student rental where I receive $3200/mo gross income.

What made you interested in investing in this type of deal?

I love historic homes and wanted to take on a project as an investment and learning opportunity

How did you find this deal and how did you negotiate it?

I had the listing originally. Traffic was a little slow as it was summer 2022 and rates were rapidly rising. Seller was an investor and motivated to move on from it so I made an offer to buy it myself.

How did you finance this deal?

Private money and my own cash

How did you add value to the deal?

Extensive remodel including new plumbing, electric, hvac as well as complete remodels of bathrooms and kitchen.

What was the outcome?

Cash out refi and holding for $1000/mo in cashflow as a student rental.

Lessons learned? Challenges?

Tons. My first historic project so I knew there'd be surprises. Didn't expect it be extensive termite damage, but it is what it is. My timeline was aggressive to start so next time I'll take things into account and plan upwards of a year to complete.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Self represented as an agent: loved working with Steve Levine as my private money lender locally.

Here’s the short version—the money is the easy part.

Find a motivated seller, get yourself a deal and the money will find you.

Come out to this important discussion to find out how to get money for your deals from lenders, private sources, friends, family, and GRID itself.

Doing deals isn’t the only way (and maybe not even the best way) to make money investing in real estate.

This event is also about how YOU can be the bank and how to properly structure loans to other investors that can provide solid, safe returns on your money—without getting your hands dirty.

Come for the training, stay for the networking!

Thanks so much. Gotta get creative wherever possible. I initially tried to sub-to the deal bc the person I was buying it from had it on a seller finance note and got behind. I offered to catch up and keep the interest rate at the 6% it was and they were just fed up and wanted out. Happy to chat more about other investment options in the area. 

Hope to see everyone there. Wednesday June 7th at 6pm

2160 Lakeside Centre Wy #100, Knoxville, TN 37922