All Forum Posts by: Justin Hoggatt

@Aaron Caminati - how fun!?  I recently saw a campground for sale that I went to when I was in HS and it really peaked my interest as a possible opportunity. Unfortunately it wasn't a great fit.  We're in the space full time and dedicated to it and I'd be happy to connect.

Hi @Karl Schnitzer - you're someone right up our alley! I am so glad to see more people getting interested in our space of RV Campgrounds.  Right now we see significant opportunity and the space has very much heated up over the past couple years.  Our team is comprised of some dedicated individuals looking to expand our reach and horizons as we continue down the path of ownership with many more parks.  We just closed our second RV Campground - both in the Midwest.  We have the season just starting (basically on Memorial Day) and this is definitely the primary money making period, however, if you can adjust a bit to have a year long operation it helps smooth out that hump.
I'd be happy to connect further - reach out when you can.

Hello All!
We have restaurant/kitchen space that we're needing to rent out that is part of a store.  We are supplying the majority of the kitchen equipment as part of the restaurant and covering a greater portion of the utilities and maintenance of the building because it's part of the store, check-in, storage that we have as part of our operation. 

I'd like to first see what type of agreement/terms sound best for this situation.  I'd also really like to see if anyone has a sample lease that they might share or even a good contact in the Cedar Rapids, IA area that might be able to help on the leasing of this space.  We believe we have found a good possible tenant for our space and I'm looking to get everything ironed out so the lease aspect is really the final part.

Thanks in advance.

@Christine Bellish, thanks for helping getting information out there about Syndication.  I, too, am surprised at the amount of people that don't even know what the word means, let alone the benefits.  So many people, even accredited investors, think that they actually need to be involved with real estate (property management, buying, selling, due diligence, etc) in order to own real estate.  With the Syndications, it's possible for most people to own a piece of the pie and increase their net worth - even if you're not accredited. Our focus is on RV Campgrounds and we try to keep our offerings to our network so that we can provide them as part of the 506(b) and allow a select number of non-accredited investors invest.  Our goal is to increase everyone's net worth, whether that's through opportunities or the sharing of knowledge.

Yes, many people are looking to invest into hard assets like real estate with the influx of cash and inflation.  We find it fun as well!

Since this property really isn't "multi-family" in the sense that it's a commercial property, I don't think that the questions about rent collection and payments are as important.  Since it's a duplex, I'd be looking at it more from the market value, condition of the property, and location.  I think if you do some good due diligence on the condition (no major defects and/or deferred maintenance items) and look into the market including what the property can pull as far as rents go, you should be fine.  If there are low rents or bad tenants for the two tenants that are there, you should be able to increase the revenue quickly and easily.

This sounds like a conventional loan.  The broker will likely be putting you in a loan and option that covers a rental property.  That would likely require 20% down for the property ($230,000).  The interest rate would also be higher because it's a rental property so keep that in mind.  Depending on what the property has on it and how it's used, you may also be able to look at an SBA loan option.  They offer better terms and you may need to bring a lower down payment.  The other option would be to see if the sellers would work with you and carry the note.

Hey Corey!  I hope you're well! 

Although I have a larger operation and use Appfolio myself, I started smaller and utilized a couple software solutions. One was Rentec when there were getting started. I then moved to TenantCloud and have a couple others that used that and we have all enjoyed that platform a lot. I think that would work well for what you're referencing here. It provides great options to pay including maintenance requests, applications, etc. I wouldn't worry too much about sole vs LLC when trying to figure out a software - they don't care if you're the user.

There are many different ways to structure the deal, but I think the best ways would be to avoid having this person on the loan.  If they bring the money for the loan, they are more than likely going to have to be on the loan paperwork.  So, to avoid that, I would try to structure a Promissory Note with this investor for a steady return.  If they are looking for more upside, then I'd work with them on a deferred interest and percentage of the ownership return.  I also think it depends who this investor is - a family member?  Deals are easier to work with when it's someone close to you.  Then when the property sells, the investor gets the ownership percentage of proceeds from the sell.  If it's truly hard money, then why wouldn't you want to put your own money into it and avoid paying out the higher rates?  The other variable that you're mentioning ($10k back) also depends on how long you're talking about - $10k back within a year is amazing.  $10k back after 5 still could work too - so time frames are also a factor here.

The fund is only as good as the people that back it.  Do you have a good source of investors along with other people looking to list their home?  Starting a fund isn't cheap. There are companies online that help with creating a fund but you might want to start with talking with a local attorney that would be able to do this type of work for you.  I think it will show you the complexity of it as you learn more and you may figure out that it's not your best option.  Have a good source of lenders would be the cost of doing business here and you can get the show on the road right away.  Creating a fund is a long process as well.