All Forum Posts by: Greg Moran

Investment Info:

Single-family residence private money loan investment in Newport News.

Cash invested: $75,000

Contributors:
Marsay Winder

(05/10/2021) Private money deal #4 with a new Flipper. I met @Marsay (aka The Property Pastor) here on BP, and we corresponded via email a couple times. It wasn't until months later that we synched up for more concrete business talks. He found 3 potential deals and we decided that I would fund a BRRRR on a SFR property in Newport News, VA. Title company and SDIRA delayed closing by a could days, which made us anxious the seller may back out, but everything closed and rehab has started.

UPDATE: (08/15/2021) Road-tripped down to visit the property in person over the long weekend and check out the rehab progress. All major updates are complete: New flooring, lighting, refurbished kitchen cabinets, back&front yard clean up. Only the finishing touches remain. Marsay is debating whether to BRRRR, or if the market has now improved enough to Sell outright. Both are good options, so the final exit strategy is still TBD! Either way my money comes out of the deal and will be ready for the next one!

UPDATE: (10/01/2021) Renovation complete and the market is so hot right now! Therefore the rehabber decided to list the property for sale, instead of refinancing the BRRRR. Not much change in the exterior (be pics below), but the interior and backyard is completely updated! This one is priced for a quick sale, and we're looking to squeeze in one more deal before the end of the year.

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

Private money lending is the most passive form of REI, where someone else does all the labor, and as the lender, you earn a safe ROI.

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

Marsay (aka the Property Pastor) has a pipeline of wholesalers and he scrutinizes each deal to meet our joint criteria.

How did you finance this deal?

100% private money, cash purchase

How did you add value to the deal?

Deal analysis and brought the funding.

What was the outcome?

House is listed for sale after just completing the renovation

Lessons learned? Challenges?

Overall a very smooth flip

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

Big high-five to @Marsay Winder (aka the Property Pastor) for being the boots on the ground. Glad we finally got t meet in person after a year+ of virtual-only correspondence.

Investment Info:

Single-family residence private money loan investment in Newport News.

Purchase price: $75,000

Contributors:
Marsay Winder

Partnering with The Property Pastor (CKJW Properties) for a BRRRR deal in Newport News, VA.

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

Finding a new "deal-finder" partner; Growing/maturing my private money lending business; @MarsayWinder did the legwork to justify the value of this deal using the BP calculators.

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

Brought to me by @MarsayWinder after several introductory phone & Zoom conversations to build our relationship.

How did you finance this deal?

SD Roth IRA

How did you add value to the deal?

Readily available capital with a rapid closing timeline.

What was the outcome?

Property is currently under rehab

Lessons learned? Challenges?

Even when an IRA custodian says they can close within 24 hours, it's best to have a couple days of margin to allow for their process to send the money. They were about 3 days late(including a weekend), but the seller was graciously patient... Thankfully!

 Very helpful Sharon, thanks! Texas is big enough that it shares that diversity of liberal-to-conservative values. Surprisingly there are quite a few liberals in the big Texas cities. It's definitely a balance as they want a small-town rural feel with all the arts and culture of a liberal college town... Talk about a needle in a haystack! That's a good suggestion to go and visit the area. Would you have any suggestions as to how to organize the visit? 

• Where to start? Where to finish?
• Is there a guide or Realtor that would be willing to help out a couple that may not know what they're looking for?
• What's the best time of year to make this trip?

Howdy Mary, They are looking in the small towns in/around Vancouver. They're tired of the big city after 40 years in North Dallas. I mentioned the ability to have multiple units on their property for short term rentals (STR), but i'm not sure they're convinced. I think my Mom would go for it, but my Dad isnt the BnB Host type.

Howdy Jay, Good info, Thanks! I'll pass that along, disclaimer and all.  B-) They've visited friends in the Vancouver area, and I think that area would suit them.  The concern is finding something that meets their extensive set of (sometimes mutually exclusive) criteria. Think: affordable  off-grid log cabin with mountain and stream views in a quaint small town with close access (15-min) to great arts&culture, transportation, and healthcare. The list is long!

 Howdy Julee, and wow... thanks for all that detail! Quick answers: They are looking at the whole spectrum, and my intent is to help them understand their budget. They're investigating the ($10k's) unimproved land parcels with various levels of utilities installed, all the way to finished modern "log cabin" style homes in the $100k's-300k's. I think they will eventually end up in the $200-300K range. They definitely want a small town feel, with convenient arts/culture/transportation amenities in the surrounding area.

Howdy BP community,

I'm helping my parents navigate a retirement real estate purchase, as they look to flee the scorching summers of Texas (also apparently winter-storm-ravaged at this point). Right now they are considering the Pacific NW area around Portland OR and Vancouver WA. I'd love to hear form local area experts:

• What should they be looking for?
• What should they look out for?
• Areas to consider or avoid?

Their list of requirements is pretty specific and includes a preference for Single-family energy efficient, sustainable, and green built properties near small towns with big personality & culture. B-)

Thanks for any assistance you can provide!

Change of plans! During our last planing session, it turns out that my parents are now more interested in the Pacific NW... 

So they're starting the search criteria over. Thanks for everyone's posts and message responses!

I've been writing about my first syndication experience with @Four Oaks Capital and @H Squared Capital on my Deals list: https://www.biggerpockets.com/...

Good suggestions Thanks @Charles! I did dig further and you're right. The LLC will get us a K-1 Tax form which shows the UBTI [unrelated business taxable income] associated with this deal. I asked for the anticipated tax burden for my overall investment and they gave me their 6-year projections. Now I know to keep some reserve capital in my SDIRA to cover the moderate near term income, as well as the larger gains when the property is liquidated.

Also, I hope you're doing well and staying warm through this Extreme winter weather! I have family in Plano/Richardson and they're telling me the rolling blackouts are done now, but they're rationing water.