All Forum Posts by: Sam Epperson

@Rachel H. I've heard a lot of mention of Dodd-Frank laws around selling the homes back to the tenants.

Can I just say "hey it's worth 10k, I'll give you a 2-year note, pay me 24 monthly payments of $416" ??

So I'd have my lot rent plus the 2 years of payments, then they would own the homes?

I've got an off market deal with 9/10 being POHs. It's mom and pop, and he's only charging a standard rent. Not charging "lot rent + home rent".

How do I find the market value of the park owned homes? I'll need this to correctly find the price of the entire deal.

Also, after purchasing the deal, is it best to lease-option the homes back to the tenants? What's the best strategy to offload these homes that I don't want to be in charge of maintaining?

Everytime I think I've found a deal, I'll bring it to my coach and he will say "that's not gonna work, really at all." 

And I'm frustrated. 

im focusing on apartments 5-50 units, stuff that needs work, in great markets. 

"great markets" for me, is positive job growth, population growth, median income over $35k, city over 50k population. 

ill get a deal that fits, then adding proper management and RE taxes, it goes from a 6% to a 2% quick. 

ehat gives??

Want to partner to buy a 3-plex. We've just bought a house and can't be KP for the loan. I don't have a lot of money left after that.

The property can be lightly rehabbed in one unit to increase rents. Could also use further cosmetics on exterior, etc. There's upside in rents. 

i want to partner but couldn't sign for the loan. My dumb question is: who signs for the loan? Do I ask for an equity partner to sign for that, then I can manage it? (I could and would want to). 

2nd dumbass question: what's my exit strategy? It cash flows now, can cash flow better with upgrades. Do I offer an equity partner the majority of cash flow plus equity at sale, then sell in like 3-5 years? 

Without specific numbers, does this sound like a good deal?

@Account Closed in Indy/Greenwood/Bloomington it's all the same: this is a steady market and very desirable. As echoed in this thread and before: if you want a better deal than Joe Schmoe, relationships take time. There aren't brokers out there sitting around with a pocket full of deals. 

What do you bring to the table? Call brokers, tell them what helps them, and they can market for you. Also you can market for yourself by driving for dollars. 

there isn't really a list of  "investor friendly" brokers, as most will do any kind of real estate. 

Finding good deals off market through brokers is terrific, but it's only one tool in the toolbelt. Market for your own deals through direct mail, networking, partnering, meeting contractors and other real-estate-based servicers, etc etc etc....

Have 1 business partner who will handle investor relations. We are buying small multifamily deals near me, which I will be the Asset Mgr of. 

My partner has connections with 5-6 investors who would supply the down payment and rehab money. My business partner will be bringing some money as well. Together, my partner and I will split duties on managing our deals: I will take care of due diligence, sourcing deals, underwriting, and ongoing asset management. He does investor relations and helps in decision making. 

Do we have a JV partnership with the two of us plus the 5-6 investors, or are we the GP of a syndication deal?

Trying to wrap my head around putting the refinance conventional loan into my underwriting. This is a theoretical deal:

Seller Financing 32 Units $2,500,000 deal.

I put 10% Down ($250,000) at 5% I/O for 2 years.

My annual debt for these two years is $112,500. 

**Here's the part i'm confused about: After some rehab, the property is now worth let's say $3,250,000. When I'm refinancing into a better loan, Is my mortgage going to be based off the new value? For example:

Deal Value $3,250,000

80% LTV = $2,600,000 (mortgaged amount)

20% Down = $650,000

I dont know why this little bit is tripping me up so much. Please help!

Slordlord "A": Has little trouble renting rooms. He has owned the property for so long, in such a desirable space, that it nearly does not matter the rent is charged. Space will be filled. 

What problem do i, a non-slumlord, solve? 

person is renting  ugly/gross rooms at market rate due to lack off rooms. no "plethora" of rooms on the horizon.

how to gain from this situation?

I have a deal for a Mom and Pop owner who owns many properties. All of his financials flow into and out of one account. He has zero records for individual properties. He built them in the early 90's and has owned them since, with repairs only being made if the local housing authority has legally demanded it. They are in need of updates.

Even in their poor condition, they are being rented at 85-ish% market rate, with 15(?)% vacancy. No actual management, lots of deferred maintenance, not capturing fees, etc. 

I can estimate expenses based on comps, and he has a "hand written rent roll" from september. 

This is in a strong rental market in a college town.

This is textbook "opportunity" property. 

Is it, though?
I've had 3 experienced pros look at my underwriting and effectively say I can't bring investors much more than 15% IRR on this. This is at my most conservative underwriting.

Is this not a return that investors are looking for? Am I not finding exactly the type of property and owner they told me to find? Is this not a great market? 

I'm getting stressed out because the same people who are telling me to look for one thing, are the same ones who are saying that (when I find it) it isn't right.

What am I missing?

@Josh Atchison I live an hour from there, but that is within reach. do you still need help with this?