All Forum Posts by: Douglas Gratz

@Bruce Woodruff at this point , brushing against total failure, evicting all my cash paying tenants that are not willing to pay the section 8 price (two units) well they are leaving on their on except one. So I am just focusing on renting them, repairing some units, making they are all shipshape, and then going to laser focus on getting 20 units while building a team of like minded people. Turn this into something that can scale. 

I would like to build a duplex or triplex (Depending on zoning) but the mile stone has been pushed back a little haha

 20-40 Acre active horse farm is what I have honed in on as my partner flips horses lol, funny how we met, I flipped houses she flipped horses, anyway, what can you tell me/help me with? I Just dont know where to start , hard to find comps, but given how many people have asked to buy this farm I live on, there must be demand for it where I am at. Thanks

Hey friends !

Has anyone ever heard of rehabbing farm land , like a horse farm or any for that matter? 

@Lance Hernandez wow I’m a little late , but anyway it did not work out. No one would lend, not even with the signed AOS and 300k down…It was insane, would have broke had Covid not doubled the cost of rent for my rentals. It was tough goin though for a while

@Bruce Woodruff thanks. It actually turning out to be little more complicated, this specific House is in my name, not my business, transferring to the new LLC with my partner triggers due at sale, so cant do that...

We are going to use a similar duplex under my llc, however the LLC has 2 properties under it so I have to create "shares" and give him the amount that is equal to his share in the duplex. How is this calculated?

1 SFH appraised $150,000 Mortgage $115,000, payment $674.32,

1 Duplex. appraised  240,000, mortgage $155,000, payment 1100.44

Equity in duplex = $85,000. he is contributing $35,000. We really want his ownership to only be in the duplex, maybe I can make an addendum or Clause but, one way or the other we need to distribute shares, how to I figure what 1 share is worth? Or better yet, because I cant find this anywhere..... With the numbers above, how much of that duplex should be his with the 35,000/85000 = 41.17% of that duplex? and with hat % can can we figure out cost per share?

so if im paying 12k a year 6k- costs to fix, doesn't add up it would be negative, or is it 50% of the total loan so 155k/2 = 127.5k- costs to rehab?

I took a loss mainly due to holding it to long (interest and soft costs) 100k I was going to sell November 2022, which was in my business plan I’m not gonna get into why I didn’t but it wasn’t my choice. At that point I would not have taken a loss and that’s why I said that date. I actually had a partner with an Experience. He lives iI actually had a partner with an Experience. He lives in Florida than that you got me the lender where we were two weeks from closing and I’ll assume it’s my background that’s why they did what they did because my partner has plenty of experience and him being in Florida and doing deals in California. They still lend to him so I can only did this one thing.

 @Bruce Woodruff thanks, it was a tough pill to swallow because that deal would was slingshot my business forward.

Anyway I have a quick question, how do you value a rental if you want to go partners and sell 50% of it? Appraised $240k, mortgage 155k , monthly net cash flow $1000

How much should it cost someone to buy in?

 It wasn’t because my experience even though that is exactly the reason I could not get a loan …..The investment was right, (bad timing) , I had everything as it should to get ready to put a shovel in. Budget, schedule of value, time line, quotes and deposits ready to go if i was approved. I was ready Bruce, but banks dont like when you never built before, I also think it had alot to do with my felony, because 2 weeks before closing a loan they lowered it 200k per home, “your experience and background” is what they said. If I got the loan , I knew the headaches along the way, I work for a builder, we just finished two custom homes, it was a nightmare.

 It sure is, love it and @Bruce Woodruff was with it the whole time with constructive criticism that I will say, often took me down a notch and I did not like however he knew what he was talking about so I always took it serious.