All Forum Posts by: Heath Shepard

@Dmitriy Fomichenko Thank you!

@Suresh Kannan I look forward to hearing from you please feel free to reach out whenever you feel the need.  I grew up in Occidental Ca which is West of Santa Rosa.  I am currently working with an investor from Sacramento that I met on Bigger Pockets.  He is coming into town this weekend to look at a few houses.  I got into this business because i love helping people.  Its my spiritual gift.  My goal is to make all my clients feel like they are my only client because that was what I experienced with my real estate agent turned mentor.  I would be happy to help you in anyway I can.

@palo Vazquez, Unfortunately the property is not cash flowing because I wasn't able to find tenants willing to pay the rents that were originally in place when I agreed to buy the property.  I am hesitant to give nay specifics as we are currently in litigation.  Once all this comes to a close I will update everyone on the outcome.  I don't want to do anything that might jeopardize the case.

@Suresh Kannan

I personally have Red Wagon Properties managing a duplex of mine and I also personally am friends with the owner.  I don't get any special treatment but the company is great and they managed to fill the duplex quickly and at market rents and best of all the tenants are really good people.  They may be able to get the property filled without managing it for you for a fee.  I think everything is negotiable.  If you do give them a call could you mention my name please?  I might be interested in being your boots on the ground as well depending on the location of the property.  Let me know?

https://redwagonproperties.com...

Talk to you soon,

@Joseph Cacciapaglia @Rick Pozos

Hey there Joseph! Thank you so much for the guidance here. Yeah I purchased the property before I had my license and I specifically asked my agent if the rents were in line and he said they were. It wasn't until after I had my license that I was able to do a rental CMA and realized that they definitely were not in line with others in the area. I did use the TREC form so I will be sure to let my people know that tidbit incase it can help. I am in the process of trying to get whole and will keep you all informed when it comes to a close. Thanks again!

Investment Info:

Small multi-family (2-4 units) buy & hold investment in San Antonio.

Purchase price: $349,000
Cash invested: $69,980

I bought this duplex with two leases in place of 1350 each. The day after I closed I found out that the seller "let the tenants out of the leases" the week before closing. at this point it seems that my agent received the information and failed to disclose it to me. the story is not over but we will see what happens.

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

I want to get into multi family and the numbers on this property looked really good. Too good apparently.

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

A real estate agent found it for me.

How did you finance this deal?

Local bank portfolio ARM

How did you add value to the deal?

I have put tenants in place.

What was the outcome?

The property is now leased but at a lower rate that the original leases. They seem to be really good quality tenants but the value of the property was hit pretty hard as a result of the possibly fraudulent leases.

Lessons learned? Challenges?

Go with my gut. I had a feeling that something wasn't right but I ignored it. I asked the right questions but my agent gave me bad information and failed to perform is fiduciary responsibility to me.

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

Yes. I would absolutely not recommend him.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in San Antonio.

Purchase price: $349,000
Cash invested: $69,980

I bought this duplex with two leases in place of $1,350 each. The day after I closed I found out that the seller "let the tenants out of the leases" the week before closing. at this point it seems that my agent received the information and failed to disclose it to me. the story is not over but we will see what happens.

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

I want to get into multi family and the numbers on this property looked really good. Too good apparently.

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

A real estate agent found it for me.

How did you finance this deal?

Local bank portfolio ARM.

How did you add value to the deal?

I have put tenants in place.

What was the outcome?

The property is now leased but at a lower rate that the original leases. They seem to be really good quality tenants but the value of the property was hit pretty hard as a result of the possibly fraudulent leases.

Lessons learned? Challenges?

Go with my gut. I had a feeling that something wasn't right but I ignored it. I asked the right questions but my agent gave me bad information and failed to perform is fiduciary responsibility to me.

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

Yes. I would absolutely not recommend him.

Hey Andrew!! Thanks so much for reaching out. I am just figuring out how to add properties on bigger pockets so I bought this property last year in February. I bought it for 300k with tenants already in it paying $2,400/mo. I paid cash for this house because I needed to park some money for a while. I plan to pull out 70-80% of that equity once I find another deal but right now the market is so stinking hot reasonable returns are very hard to come by so for the time being the money is sitting there. As a result my cash flow is ~$1,600/mo but my ROI is only 6.44%. Prior to the pandemic I was searching for a .84% purchase to rent ratio but now we are looking at .75%-.79%(if your lucky). If you are interested, I am a real estate agent and I would love to help you in any way I can. Are you located in Boston? What does the market look like where you are located? Thanks again for reaching out.

Talk to you soon,

Heath Shepard

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $325,000
Cash invested: $66,000

I currently occupy this property

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

The location and that this property was distressed in comparison to the rest of the houses in the neighborhood.

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

A property manager friend of mine.

How did you finance this deal?

30yr fixed because I'm living in the property at the time of purchase.

How did you add value to the deal?

Full interior repaint including all cabinets, exterior paint and wood repair, New roof curtesy of a hail storm.