All Forum Posts by: Geoff Andrist
Geoff Andrist has started 5 posts and replied 26 times.
Post: I want to buy 5 units by the end of 2018! How should I do it?

- Investor
- Snohomish, WA
- Posts 26
- Votes 17
Debt assumption is more common in commercial properties (5 or more units) but can still be done in residential. Was pretty universal in foreclosures, or when working creative deals.
Not so common anymore, here's a link on the reason why: https://www.johntreed.com/blogs/john-t-reed-s-real...
How does that benefit the owner? People sell for all kinds of reasons, and the cost savings for the seller of an off market property can be substantial, and much faster. I like to remind myself it can be a good deal BOTH ways in the transaction if done well. Just need to break down what the seller is really after versus what they're telling you (usually not the same).
Commercial funding? Far more open to creative solutions. There's different regulations at work in a commercial purchase which are less restrictive. So you can see lots of seller carryback financing, also defeasance work arounds, or even sometimes multi stage buy outs, even simple lease options, and of course traditional funding. It depends on how comfortable your sellers are with these concepts, and which piece fits the puzzle.
That's one of the reasons I enjoy commercial property so much more than residential. More flexibility.
Post: Seller Backed out. Do I just eat the inspections loss?

- Investor
- Snohomish, WA
- Posts 26
- Votes 17
I've prepared to sue for specific performance on a P&S, but a hotly worded letter from my attorney worked and the sellers backed down. It was appropriate in the given circumstances (upset sibling in a probate situation) but made for a really tough closing, and oddball reports to the county about us post closing. Would certainly do it again given our circumstances.
But agree with @Charlie MacPherson on the hurricane aftermath you describe. Ultimately your call though Ben, good luck.
Post: I want to buy 5 units by the end of 2018! How should I do it?

- Investor
- Snohomish, WA
- Posts 26
- Votes 17
@Jia Liu, if you opt to go commercial consider working with an existing investor or mentor. Sometimes if you find a screaming deal you can bring it to an investor who will essentially guarantee the deal for you to lenders (normally asking for a cut as well btw). I thing your numbers seem optimistic, but maybe not impossible. Also, if you manage and owner occupy the one of the units you can "house hack" it! Would certainly be easier to manage if you're living there.
Just depends on your network, creativity, and proclivity for hard work.
Good luck, let me know how it goes!
Post: Self Storage Gates -best practices?

- Investor
- Snohomish, WA
- Posts 26
- Votes 17
We're in the middle of some renovation of an existing storage facility in Eastern Washington State North of Spokane.
Currently, I'm looking for an automatic security gate and wondering what good and bad experiences people have had. Any things to watch out for from contractors, or additional features that are worth the money?
Also, looking for any suggestions on contractors too. I would go look them up on "the Google", but wanted to get ideas and opinions first!
Thanks for the help.
Post: Seller Backed out. Do I just eat the inspections loss?

- Investor
- Snohomish, WA
- Posts 26
- Votes 17
Ben,
I love your creativity. I bet the sellers are holding off on an insurance review to see what comes of that before they'd consider anything creative. Could be they're concerned about jeopardizing their coverage if they tie or encumber the deed somehow.
You can ask them to pay invoices I bet, but I wouldn't. Let these folks get through that nightmare without adding on. You'll end up getting that money back in another transaction, but once you spend that good will it's really much harder to get back.
Post: I want to buy 5 units by the end of 2018! How should I do it?

- Investor
- Snohomish, WA
- Posts 26
- Votes 17
Seller carrybacks, partnerships, debt assumption, trade things, property repairs in lieu of down payment (FHA 203b or 203k).
Where are you investing, surely not anywhere near San Francisco?
If you go commercial for all 5 units at once you have even more options for funding. But just have to get creative!
Post: Do you give keys to your handyman??

- Investor
- Snohomish, WA
- Posts 26
- Votes 17
If you're married to them, then I'd say it's a safe bet. Otherwise.... I'd put a lockbox on the property as needed.
Post: Self storage facilities

- Investor
- Snohomish, WA
- Posts 26
- Votes 17
If you dig you can still find great deals on mom and pops. But beware if you're looking for forced appreciation by value adding make sure you've got reserves. Sometimes you will run into expensive oversights such as zoning restrictions, maintenance issues, or insurance problems. Or even undisclosed property problems post closing. Also, nearly always the expenses are understated. So underwrite carefully.
But if I were to buy something highly leveraged I would include a rehab budget with the funding (seller carryback or rehab loan). Pretty easy to overextend yourself, and wipe out cash flow. Best to have big reserves up front then refi it out later after the property stabalizes....BRRR style
Post: Where should my bank be ??

- Investor
- Snohomish, WA
- Posts 26
- Votes 17
Agreed, if you can work with a local bank that is in the area of your property then normally you can use their notary services, cash checks, and even borrow a meeting room once in awhile. Ideally find a bank in both locations (near your home and the subject property) that is a smaller regional bank.
Post: This house has no takers

- Investor
- Snohomish, WA
- Posts 26
- Votes 17
Hows that compare to market?
Think you can get a better picture with blue skies behind it?
Haven't seen a minimum income on these ads before, does that work for you?
Just a few thoughts.