All Forum Posts by: Kris Fox

Welcome to the group Josh!  I'm local.  Greenville has a very big investor community.  What are you looking to get involved with first?

My name is Kris Fox and I've been investing in real estate since 2009. I got started doing smaller hard money loans and eventually passive investing turned into active unintentionally.  Since 2013, I've flipped 16 houses with another 3 in process.  I'm still actively pursuing flips, so please present your wholesale deals to me and if you have a project you need funding on, please reach out to me.  I've met quite a few of you at the coffee shop meetup and am looking forward to doing some more networking and holding each other accountable to specific actions we all know we should be taking to advance our careers in real estate.

Welcome.  I did the same thing for a while until I moved from Asheville to Greenville.

See you guys tonight.  Looking forward to meeting everyone.

I have a borrower who wants to make me an equity partner on a commercial deal he's looking at. There's a 6000 sqft building that currently has a tenant. Borrower has been around a long time and has a tenant ready to sign a new lease at $6/sqft NNN. I'm waiting to hear back when the current tenant's lease ends.

Purchase price on the property is $100k.
Conservative cap rate in my area is 10%. Obviously if these numbers are accurate this will be a heck of a deal. Get performance up for a couple of years and have a property that cash flows $33-$35k per year. Does NNN truly get me $36k/year? And then 10 cap will get me to a value of $360k.

The property requires about $15-$20k of exterior repair that the tenant is willing to do.

This seems like one of those too good to be true deals.

How do I protect myself here? Can I get any assurances?

 I was thinking the same thing.  2-3 Veterans with very local knowledge telling it how it is. Pretty amazing.

In North Carolina and South Carolina, there is a law that limits the amount a seller can get from a non-performing buyer to the amount of Earnest Money Deposit. 

I'd call another title company to see if there would be any recourse.  If you're already easily comfortable walking away from ~$4k, an extra $700 shouldn't be enough to endure the stress you'll undertake if you take on this dog of a project.

I don't know what kind of Earnest Money you have into this deal, but you really have to ask if the losses by walking away are going to be less than the amount if you stay in.  If yes, just walk away and call it a cheaper lesson than if you stick around.

Good luck.

I've had a mobile home park in my IRA for the last 4 years. Just make sure you stick it with a property manager after purchase. Not too difficult.

 I really like this Kevin.  I just got home after making this post before I left the house for the day and pulled my lease out.  I have this in the lease.

"Lessee shall make or cause to be made all incidental repairs other than those named above and shall be responsible for all repairs required due to his/her negligence or abuse without regard to total cost.  Lessee is responsible for frozen pipes; clogged sinks, drains, commode, and sewer/septic lines and for any damages resulting from the same."

Reading that, it sounds like I'm covered.  

It sounds like the plan of action should be to 

1) Not hire plumber again

2) Renegotiate price with plumber.  Get invoice with description from plumber that all debris in the drain had to result from tenant's neglect.

3) Pay plumber

4) Send a letter requesting payment from tenant

What does everybody think of that?

-Kris