All Forum Posts by: Greg Pawluk

Investment Info:

Condo buy & hold investment.

Purchase price: $650,000
Cash invested: $130,000

Vacation property. STR. New construction. Considered a condo the way insurance and HOA is structured. Most of the insurance, exterior maintenance, water/sewer, cable/wifi, furniture, smallware, included. OBX is a growing and sought after market. Neighborhood is 1 year old and homes have already increased in value over $100k. Buy/hold strategy. Quasi- creative financing with partnership 20% down and a 60/20 split (traditional mortgage/ heloc). Will refi in future.

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

Opportunity. Vacationed here. Kind of fell on my lap. Good situation that I found a way to make a deal. Will use this property for my family as well as make it a business.

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

Newer community finalizing construction- primarily off listing. Saw a sign being removed. Called the number. Met and spoke with agent, builders spouse. In part of their agreement with township, they were to list a few of the properties on open market. Worked out a deal, found business partners (down payment assistance), and took advantage.

How did you finance this deal?

20% down (through partnership) with a 60/20 split mortgage (60= traditional fixed 20= heloc). Will refi when rates drop in future.

How did you add value to the deal?

The location and the amenities of the community are adding value. You cant find an existing home for sale for same price that doesn't need extensive work and that comes with same assurances, let alone a brand new home, furnished, with amenities such as pool, gym, taco bar, steps to ocean, shops, and the sound.

What was the outcome?

Purchased. Started STR, already securing summer bookings.

Lessons learned? Challenges?

First purchase longer distance. Phone challenges and dealing with less efficient/motivated parties. New business venture with STR.

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

Shop around with your lenders. They are not all created equal.

Investment Info:

Condo buy & hold investment.

Purchase price: $650,000
Cash invested: $130,000

Vacation property. STR. New construction. Considered a condo the way insurance and HOA is structured. Most of the insurance, exterior maintenance, water/sewer, cable/wifi, furniture, smallware, included. OBX is a growing and sought after market. Neighborhood is 1 year old and homes have already increased in value over $100k. Buy/hold strategy. Quasi- creative financing with partnership 20% down and a 60/20 split (traditional mortgage/ heloc). Massive out of pocket savings structuring this way. Will refi in future.

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

Opportunity. Vacationed here. Kind of fell on my lap. Good situation that I found a way to make a deal. Will use this property for my family as well as make it a business.

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

Newer community finalizing construction- primarily off listing. Saw a sign being removed. Called the number. Met and spoke with agent, builders spouse. In part of their agreement with township, they were to list a few of the properties on open market. Worked out a deal, found business partners (down payment assistance), and took advantage.

How did you finance this deal?

20% down (through partnership) with a 60/20 split mortgage (60= traditional fixed 20= heloc). Will refi when rates drop in future.

How did you add value to the deal?

The location and the amenities of the community are adding value. You cant find an existing home for sale for same price that doesn't need extensive work and that comes with same assurances, let alone a brand new home, furnished, with amenities such as pool, gym, taco bar, steps to ocean, shops, and the sound.

What was the outcome?

Purchased. Started STR, already securing summer bookings.

Lessons learned? Challenges?

First purchase longer distance. Phone challenges and dealing with less efficient/motivated parties. New business venture with STR.

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

Shop around with your lenders. They are not all created equal.

Suggestions?

Have a colleague who’s relocating. He knows I have a rental and came to me with an off market opportunity to buy his 1 year old town home. Good location. Market value, maybe just slightly under it since we aren’t using realtor. 

He has to leave to start new job. Wife is staying back until January. they either want to sell then, or sell now, and she’ll rent it from me during interim. 

They’re open to creative financing. They don’t have a ton of equity. Maybe 40k or so.  I don’t have enough capitol for a traditional 20-25% down on a traditional lending option.  I can do a portion of that and was thinking of amatorizing the rest to them over an agreed upon rate. 

Any ideas how anyone would structure this? 

@Brandon Rush how much additional security deposit do you ask for in these situations?

Would either of you recommend writing a new lease or adding an addendum to the current, making them both sign of course? 

@Justin Gabriel would you have a template of a cosigner agreement?

I have been MIA for a bit between a newborn, work, going back to school.... so I appreciate any feedback.

My current rental is going smooth.  Tenant is awesome. Responsive, alert, timely.  

She requested to add her brother to lease as he needs a place to live.  He sent an application.  I would not rent to him alone, based on income/rent ratio and credit.  

How do I add him to lease, but eliminate the possibility of her leaving and him staying ever down the road.  AKA, if she goes, he goes.  Essentially he can live there with you, but everything else stays the same.

New to this managing thing. 

Thanks

Have any investors dealt with shared living companies ? 

I was propositioned by a local company that middles shared living arrangements for young professionals relocating to the area. They listed companies they work with like IBM, Redhat, etc. 

Was curious what people’s exerpience is with these companies. The company reepresentstive is who signs and is responsible for the lease, and I approve/deny individuals staying within the home as occupants. Company covers the difference if individuals are relocating before lease end. 

@Isaac Apsey Welcome Isaac.  I've been in the Western-Southern side of Wake County for a while now.  Just purchased my first investment.  If I can help you with anything, send me a message.  

Tracey Law out of Apex.  He's a builder also. Andemeron Home inspections  Inspectors are busy... a months notice is recommended.  

@Christopher Allen Love the enthusiasm.  Very smart move to make.  I don't want to be the "debby downer", but there is currently one(1) multi-family for sale in Wake County, currently on the market.

My point... research off market properties, which it sounds like who have some, and study up on strategies to make offers on these properties, off-market.  I definitely recommend a realtor who knows the area and investing.  I am also getting my masters at State right now, so reach out whenever.  Go Pack!

@Ryan Johnston Thanks Ryan.  Great work.  I am getting settled with the first.  I will be looking for number two soon.  I will definitely be considering this strategy.