All Forum Posts by: Dan Rivers

@Andrew Postell this is Great, It’s very informative and I appreciate your help.

@Andrew Postell we are using our LOC for our business to buy and rehab.

@Andrew Postell thank you Andrew. We could do a conventional on our name but all lenders have told me there is a 6 month wait. Looking to try to scale quickly and was hoping I could find a lender, even with a higher interest rate and a couple of points to be able to lock into a long-term loan once our repairs are completed.

We are buying a home in SC for $42k, we plan to put about $30k into it and want to then refinance to a 30 year under our LLC. The ARV will be $115-$125k. We would just want a loan for about $75k. Can anyone recommend someone? We also don't want to have to wait 6 months to a year as we want to start scaling up and buy 3-6 of these a year. Thank you

Yeah, I realized that afterward but couldn't figure out how to change the title. Good point though. I plan on doing minor upgrades to keep it rented but it could still be a good opportunity later on with the talks of some upgrades going on around that side of North Charleston. We shall see but for now, it is a good cash flowing deal. We hope to buy a few more units this year in that area. They aren't easy to come by so we were fortunate for this opportunity.

I don’t at all, Chicora, near the Naval Hospital.

Thank you, I also didn't use capital gains money. I should adjust the heading, just wanted to mention it was in an opportunity zone. We may sell it within the 5 years if the area appreciates as expected to an opportunity zone fund.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in N Charleston.

Purchase price: $125,000
Cash invested: $28,000

My business partner and I purchased this 2 separate building 2 family for $140,000 in an area that is up and coming in North Charleston Due to work needed, while under contract we got the sale price down to $125,000. The previous owner had been paying water/sewer, a manager and repeat repairs and therefore, was losing money. We came in, fixed a few items under a loan of $6,000 we took to use less cash. We replaced the roof, added a dehumidifier in one back unit and replaced an oven.

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

To start receiving passive income.

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

It was on the MLS. I saw it, looked at it and put in a full price offer the same day. I then had it inspected during DD and when we found work needed, I negotiated $15K off due to the repairs. The seller just wanted to get rid of it so she agreed.

How did you finance this deal?

Since it was two separate homes on one TMS#, Frannie and Freddie wouldn't back it so we had to get a commercial loan. It is a 5 year loan amortized over 20 years.

How did you add value to the deal?

We submetered the homes and updated the leases to have the tenants pay for the water/sewer. This saves us around $1800/year.

What was the outcome?

We have a solid, income producing home in an area that has a lot of talks of being turned around. So we have a good cash flowing property with great future potential.

Lessons learned? Challenges?

Don't hesitate, analyze then make an offer. Use your DD to verify numbers and research expense reports, rent rolls, maintenance needed, etc..

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

I am a licensed agent.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in N Charleston.

Purchase price: $125,000
Cash invested: $28,000

My business partner and I purchased this 2 separate building 2 family for $140,000 in an area that is up and coming in North Charleston and is in an Opportunity Zone. Due to work needed, while under contract we got the sale price down to $125,000. The previous owner had been paying a manager who wasted a lot of money on the same repairs over and over. She was also paying the water/sewer bill which is about $1800/year. We came in, fixed a few items under a loan of $6,000 we took to use less cash. We replaced the roof, added a dehumidifier in one back unit and replaced an oven. We also added a submeter and updated the leases so the tenants pay water/sewer. She was losing about $2000/year and we have it turned around with an estimated $5-$6500/year income which is about 20% cash on cash return.

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

To start receiving passive income.

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

It was on the MLS. I saw it, looked at it and put in a full price offer the same day. I then had it inspected during DD and when we found work needed, I negotiated $15K off due to the repairs. The seller just wanted to get rid of it so she agreed.

How did you finance this deal?

Since it was two separate homes on one TMS#, Frannie and Freddie wouldn't back it so we had to get a commercial loan. It is a 5 year loan amortized over 20 years.

How did you add value to the deal?

We submetered the homes and updated the leases to have the tenants pay for the water/sewer. This saves us around $1800/year.

What was the outcome?

We have a solid, income producing home in an area that has a lot of talks of being turned around. So we have a good cash flowing property with great future potential.

Lessons learned? Challenges?

Don't hesitate, analyze then make an offer. Use your DD to verify numbers and research expense reports, rent rolls, maintenance needed, etc..

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

I am a licensed agent.