All Forum Posts by: Brad Starling

Hi, @Drew Smith , and welcome! Cash flowing properties in the Springs are tight these days. Not to say they're not out there, just not as easy to find as they were 4-5 years ago. But, I am closing on a SFR next week will that will cashflow about $200/month.

Multi-families right now are especially tougher, if your looking at the 50% rule for first blush. My opinion, but for Colorado Springs you can find a deal in any area of town, it's more about what clientele do you want. Military? Briargate and Powers corridor. Low Income? Central and southeast. College? UCCS, Garden of the Gods, Chestnut corridor. All in all, you're going to find your heaviest concentrations of multi-families on the South Academy corridor, and these will have the highest probability of profitability, but will also be your lower income clientele.

Happy hunting, and let me know if I can help!

Welcome @Justin Crabtree. You'll learn tons here. Call when you get to the Springs!

@Account Closed 

Thanks for the "grounding". I guess I'm used to much smaller SFR deals where the aforementioned information on the financials is readily available, and dependent on ME, and therefore I already have an idea of how it is going to be structured. I am currently in process of acquiring all the needed information, and have to accept the fact that some analyzing needs to be done BEFORE deciding on best structure.

I am looking at a $1.3m property that has several rental cabins on it. Currently, I only have about 60k liquid to make the deal, so will need additional investor. How would you structure your deal? My first thought is an LLC, with a partner putting in the rest of the down payment and giving them an equity position. The LLC would then apply for SBA financing, and we would arrange for an equity buyout of the other partner over a term.

Other choice is seller financing, but again will need assistance with coming up with enough down payment. Would you still do an equity position for this partner?

This property has very strong financials, and management/employees will stay in place.

This will be my first dive into the commercial side, so any suggestions/ideas are welcome.

@Rob Nichols 

Funny, I'm looking for the same thing. I've had a local suggestion, but can't get him to return my calls, so still looking for one. I'll be interested to see if anyone pipes up.

Looking for referrals for good general contractors in the Colorado Springs area. Would like someone to assist, until I get comfortable with the estimation part, with rehab estimates. Any suggestions are much appreciated!

@Brent Watson 

I door knock as a Realtor, and find it quite successful. I always go with an item of value, usually a flyer with recent listings and solds. Maybe in your case, a flyer showing how easy your process is, with testimonials.

When they answer, I just introduce myself, let them know that I'm a local Realtor, and I was just introducing myself as a local resource if they, or anyone they know, is looking to buy or sell. No matter what they say, at the end of the conversation I leave my item with them. Rarely do I have anyone unreceptive, and usually end up with at least 1 or 2 leads after 30-45 minutes of door knocking (15-20 houses).

I can't speak for the contracts in Texas, but they are probably pretty much the same as CO. The contracts are built to protect the buyer, so there are many outs. My personal opinion is that if you're doorknocking a neighborhood, you should have a good idea of local rental rates, ARV, holding costs, and therefore have a good idea of what an offer on a property should be. The only wildcard would be repair costs, until you get a look inside. If your new, I would be conservative at first, until you get to know local repair costs.

Don't forget, you can put just about anything you want into a contract, especially if your not licensed. But the goal is to help them, not offer a glimmer of hope and then bail. Gives the rest of the investors a bad name. So, you should be darn sure that you're going to be able to fulfill before making that offer. 

Ethan, being in Colorado Springs, I thought I'd give a quick chime in. Basically, supporting what most have said in that getting 1% is very difficult right now. Can it be done, yes, but those deals are quick to be gone. Realistically, your looking in the .7-.8 range, and those deals still disappear quick. Good news is, if you can get one to cashflow, rents are stable here. With all the military, we have a constant flow of military looking for a rental, so occupancy rates are high.

I'm new also, but my short answer is yes, these can be legit. However, like everything else in life, you have to do your due diligence. I've found that there is nothing better than finding what you need via reference. Hopefully someone on here knows a hard money lender local to you, so you can get going with a reputable source. But the loans can be 100% (purchase price and repair costs), as they loan based on the value of the deal, not necessarily the borrowers credit worthiness or skin in the game. That way, if the loan fails, they still have a great deal! Keep in mind that the value of the deal is going to mean that you're getting a property at a steep discount, with the loan amount being AT LEAST NO MORE THAN 70% of the after repair value. That way, even if you default, they've got a property that they can unload quickly for at least a little profit. At least, this is my experience (albeit small). Happy hunting!

Welcome @Lindsay Lundeen . I'm a fairly new Realtor in Colorado Springs, but have been here for over ten years now. I, too, and learning and getting ready to dive into flipping. We love the Springs, and hope you do too! Take advantage of all the resources and people here, there is a ton of FREE knowledge. If I can help, with anything, real estate or just getting to know the Springs, let me know!