All Forum Posts by: Irina C.

Hello, two of my syndications I invested into with the same provider are going to foreclose. The LP claims that all the equity is lost. Any tips on who to talk to to understand how to potentially follow the foreclosure process and claim surplus funds?

Thanks so much, 

Irina 

@Brendan Miller just sent you a PM

Thank you! I invested and veted so far with Flite, DJE Texas and Praxis Capital. I'm looking into Legacy now.

Hi everyone, I'm looking for my next syndication to invest in and was curious if you can recommend some you have had good results with. It doesn't matter where and what they invest in as long as they have a good track record in doing it. Thanks so much!

@Tyler Weaver the property is completely undated with a new roof, windows, water heater, floors, AC, plumbing, electric etc. Hence I didn't count a huge CAPEX for it and believe that I can refi it easily in a couple of years to keep that for reserves. In a deal that I'm currently working on where I know that in a couple of years I might need to get a new roof, a new AC etc. I'm calculating my CAPEX in there but that is also reflected in the purchase price which is going to me much lower.

@Darius Ogloza yeah the voucher from the lady that is moving is was for $1335 but as we marketed it for $1300 we kept the price for her the same to be fair and not take advantage of the tenant. 

@Pablo Ponce thank you! I discussed this issue with my agent and she mentioned that there is nothing for me to do here as it wasn't me who put the extra BR in the property and even if the state would have marked this as an issue I have it documented that the previous owner did the addition and not me. As far as I know, what can happen is that my taxes might go up because of the extra BR. 

Thanks @Kevin Marte and @Greg Todrank. @Felipe Stefanoni I will make sure to share my numbers after 12 months for sure as I'm curious to see what happens and I'm sharing this as a success case but will be open with the community if it turns out to be a failure. We are all here to learn and grow. 

@Tony Kim Thank you. I think even the negative reviews are very valuable to me as I can learn from them to see what other people have experienced and what I should be mindful of. Yeah, I agree with you that you have to put in your own hustle in order to see results. It is actually kind of shocking to me HOW MUCH work it has been even though I have invested in a "turnkey". I'm happy I started out this way because I'm sure I would have given up if I would have started with a BRRRR that holds even more work and uncertainty. I'm definitely on the hunt for more properties and realized how passionate I am about this topic ;)

@Shiloh Lundahl Thank you!! After lots of back and forth, I decided to not use the LO for this property even though I really enjoyed your article and have done extensive research. I actually even got applicants who wanted to do that which shows me that it is absolutely possible and I shouldn't have listened to all the "naysayers". I will for sure try it out with some of my next properties. I really like the idea of managing it yourself as well and might consider it once I reduce the time spent with my W2 job which should happen in the next 4-5 years. Until then I will be happy to stabilize the properties and make sure I continue building a strong team in Jax.

@Jonathan Paul Shortt I like that perspective! So I'm one R short. 😊

@Jonathan Paul Shortt thanks for sharing this perspective you are right it can be confusing I didn't think that turnkey means you have someone also do the buying and placing the tenant my turnkey is directed towards buying a property where no or very minimal repair is needed. Hence I decided it in comparison with the BRRRR strategy which I originally intended to focus on

@Caroline C. Thanks for your message. What you are describing is something that can happen with any property in any area and that's the risk we have when being in this business. My property is not a duplex it is a SFH and it will be a Sec8 tenant moving in. I'm focusing on Sec8 right now as it decreases the problem of someone moving out too quickly and not paying rent not saying it can't bring issues. Again not paying rent and high turnover can also very much happen in an area with higher income. The tenant moving in is a mom with 4 kids on Sec8. She has been on the program for a while with good behavior and the likelihood that she will stay a longer time and take care of the property is higher but obviously not given. The property is not in a warzone nor is it in a high crime area in fact during the whole time I was closing it nothing ever happened. It was a neighbor's kid who saw the for rent sign and had some fun with it, we warned him and moved on. There was no damage in the property other than getting a new lock. Again this same situation happened to my agent with a lot of damage caused in a much nicer area. So all of this is a risk we are always taking. I'm definitely staying away from warzones or high crime areas but that is not always bullet proof. I have never been in FL and am buying all of my properties through my strong team I have built in Jax. In one of my other posts I describe what I'm planning on doing to count for capex expenses.

@Tyler Weaver it includes everything other than capex. As I'm holding this property long term I'm planning on refinancing all my properties at some point in the future and use that capital for all capex needs per property. My calculations are about $200 capex per month per property as it is a long term investment. Even if I would put that into my numbers now I would still have a very good return and cash flow. For this property the ARV is $110k I paid only $88k. So this equity will help me pay the capex without any issues. Given that I'm attempting to replace some of my W2 income with this strategy I decided to keep this long term view. Doesn't mean it is wrong or right just my plan.

@Chris John i look at my numbers and I have specific KPIs a property needs to meet e.g. At least 15% ROI and at least $400 cash flow per door. Then I reserse engineer my numbers and come up with a purchase price that works for me. Usually the numbers that work for me are way below asking. If I like the property I do a very thorough due diligence even before bidding and understand what the soft spots are where I can negotiate. This property was a flip, flippers often don't have a lot of time on hand to get a property sold that is my advantage. So I look for properties that are flips and where the seller is very motivated to sell asap as holding means losing opportunities and money. Additionally, many flipped houses are remodeled without always pulling permits which is another soft point for me to push the price. Here for example I realized that it used to be a 3BR and they made it a 4BR without a permit and there were other things similar to it. So I went in pretty aggressive with all the details and we settled at 88k. I had pretty similar results with the other properties that I got under contract and have most of the time succeeded with my strategy. It could also be that at this time sellers are even more motivated as no one knows how the market will behave and then agree to a lower price than originally desired.