All Forum Posts by: Grayson Spittel

@Max Shyshnyak hey! Wake Forest, NC? Would love to hear more about this property, I live in WF. Could you let me know who you worked with as a realtor? Are you using a PM?

Likewise ^^ send me some info if you’re looking to get out of it.

@Garrett James Corwin heck yes Garrett - this is THE BEST investment strategy for your situation. Stoked for you! Fantastic long term investment possibilities with a brand new build as well - low CapEx $, low maintenance, predetermined price means that you didn't spend $50k more than needed to just get a place. Great job!

Investment Info:

Other buy & hold investment.

Purchase price: $127,500
Cash invested: $31,875

13.2 Acres in Creedmoor, North Carolina. No one is making new land. We'll use for hunting leases, timber value, camping, personal use, and appreciation until we pay it off. At which point, it will continue to be a buy & hold or switch to being a tract for a personal home. Appraisal came back $30K over purchase price, day one already have built in equity.

What made you interested in investing in this type of deal?

No one is making new land! Granville County is growing as Raleigh, Durham, Wake Forest and Wake County expands. Perk Test and Survey has been completed and shows ability of subdividing if desired. All about those multiple exit strategies!!

How did you find this deal and how did you negotiate it?

MLS - This property came on the market, we moved quickly and sent through a solid offer as we knew many of the details in regards to perk/survey/potential land usage by being local and knowing the area and our investing criteria.

How did you finance this deal?

Local Credit Union - there was lots to learn about Land Financing that is very different than traditional residential. (RMAs, Deeded Easement Access, Perk Tests, Surveys, Appraisals)

How did you add value to the deal?

Knowing exactly what the usage of the land will be for - buying at a great price - being able to procure financing that did not involve 30%+ down payment amounts when so many land deals wind up having to have large down payments/cannot get financing.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Have a great land/farm lender if needed - great real estate agent in Granville County - great closing Attorney in Granville County.

See y’all there!

@Michael Gessner @Jesse Canady knows exactly what’s going on in Wilmington. Give him a shout!

Hey Matthew - great question. Having owned a Condo in the past, my suggestion would always be a SFH or multifamily property. The tremendous benefit to Real Estate Investing to me is the control that you are able to have on your investment. Condos take away that control almost entirely. While there are of course some benefits to a condo, the associations are able to raise your HOA fees any time they have a "need", may have to levy large "special assessments" in the event of large expenditures, and can even make sure that only a certain % of units in the community are not occupied by actual owners thereby making rentals difficult. In my experience, I had a condo that had an HOA fee of $120/month go up to $275/month, crushing any cash flow per month. Very luckily was able to sell immediately following.

In regards to tenants already being in place within a unit - my encouragement is to not worry too much about this being a LARGE positive factor. It can be a positive, however, you also can inherit terrible tenants that are difficult to get rid of. If you have a PM in place that you trust, or you are managing yourself and do a great job of screening tenants, you can control another very important variable yourself. 

Hope this helps!

@Joe S. Hey Joe! Keep calling around. I’ve talked to mortgage brokers that do not have a minimum mortgage amount - you just need to find the right one. The ones who don’t are doing so from my understanding because of “high cost lending” and the closing costs being greater than 1% of the total price - something like that. But there are brokers out there that can offer 30 years without minimum loan amounts.

@Jeffery P.

The difference in cash flow per month is substantial between STR and LTR. While you might use $100-$200 as a healthy goal for a LTR, several investors I know use $1000 per month as the BASELINE goal of a STR inclusive of all savings per month. The differences though are the level of management required if you are self managing, the PM fees that you would be paying (10% vs 25%+), and often times the cash on hand needed so as to buy and furnish a property. With a self managed STR you are essentially creating another job for yourself, so the appeal of the passive investment is removed, however to reach your $10k per month goal you may need 1/10th the amount of properties. My personal opinion as well is that there is inherently more risk with STRs as in many markets we have all seen governmental restrictions put in place that limit the # of rentals, proximity to other rentals, or completely outlaw as in the case at beginning of COVID. Because of this, I'm a huge fan of multifamily properties as your risk is diversified and your monthly cash flow can be higher due to economies of scale. Even in a small multifamily property (2-4 units), you only have 1 mortgage, 1 lawn to mow, 1 set of taxes and insurance.

All the best!

Hey @Matthew Kresky, who are you using for a management company/cleaning company for STR?

Thanks!