All Forum Posts by: Jason Kent

Did you ever end up using them? I'm going on 9 weeks now with my DSCR refi with them…. Less than happy.

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $1,100,000
Cash invested: $350,000

Value add deal - 14 unit building, renovating and turning every unit - Small little JV deal with a few friends. As of June 2022 - 2 units complete - 6 more in progress - 6 to go afterward.

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

Scaling with Multifamily

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

Local Agent - Off Market - Months of negotiation with seller

How did you finance this deal?

Corevest - will refi after renovation is complete

How did you add value to the deal?

Renovate every unit - clean outside - add fencing

What was the outcome?

In Progress

Lessons learned? Challenges?

First contractor has been challenging - switching to someone else.

Investment Info:

Single-family residence other investment.

Purchase price: $55,000
Cash invested: $100
Sale price: $64,000

No work done on this one.....We were going to flip it, but ended up just doing some minor cleanup and selling it.

How did you finance this deal?

Seller Finance

How did you add value to the deal?

Minor Cleaning

I don't have a known good inspector right now..... I wish I did....   But overall, yea... in theory the keys are a good/clear/detailed scope of work, progress inspections, and progress payments.... not paying them in advance.. but they all try to push you around on that....

Sure.. if you can tell me how I can tag someone without using the Quote option.. LOL...  ...    Oh man.. the city... part of the issue / delay on this home mentioned...  GC's aren't always that technical or into computers, etc..   and when the city shut down, the GC I had at the time, he just stopped working on permits... I kept asking him, trying to be nice, and after 2.5 weeks he finally yelled at me telling me it was my job since the city shutdown (despite having the fact that he was responsible for permits in our contract)   I then fired him.     

After that.... it's been a struggle, being our first project in the city, and not knowing how they work, what they expect.. and the biggest challenge is NOT being able to get them on the phone.... everything you want to ask or communicate about, for me, it's reduced to email, often with a day delay between replies, so what should be a 5-10 minute conversation turns into 1-2 weeks of email... it's a joke...   I've learned to try to ask very broad questions, but listing details under each one, if that makes sense....   sorta anticipate the conversation, and ask them several steps ahead in one email....     but yes... it's extremely frustrating....

It's been a challenge for sure.... I've been a little too nice and for sure had some issues with contractors...    We have one house done and on the market now, the one I listed here is still in progress, and another one lined up.... we have been reworking a bunch of work from a GC we fired...   But hey, all good....I don't mind the remote thing.. just wont make the same mistakes again... I think the best answer for GCs is basically zero tolerance... make them work, or move on to someone that will...

for quality, my recommendation is use a home inspector, pay them to do scope of work inspections, but you have to be really clear about what you expect them to do too!!!!

Interesting discussion...  I haven't done any skip tracing really.. but I you look at all of those sites like been verified, spokeo, etc... you can tell there is a ton of information out there tied to every person, people with the same names in same cities... multiple people tied to different addresses..etc...    I'm not making excuses for propstream or pin... but just my personal experience is that I wouldn't expect skip tracing to really be THAT effective.

What bothers me the most is all the companies that market it as "we do skip tracing, you just click here and get the number" without making it clear that it's some computer's best guess at a number based on a million social media sites combined with county records..etc.. 

I just feel like you have to take every claim with a grain of salt...

I used propstream for a year, and I probably will sign up again soon... was intrigued by PIN and the flashier interface, but not excited about the upfront cost...   That said... when I sign up for propstream again, I do so knowing that they rely on data from 3rd parties, some of it's out of date, and I always double check and verify things... but it IS good for the amount of usually reliable information you can get in a short period of time... but always verify after against other sources.

If it was as easy as $1500 and $97 a month like the PIN videos make it sound, then everyone would be doing it.

Hi John....

This was 6 months ago.   So who knows now... but 2pts. 9.5%.  Funded 80/100.....

But they roll 9 months of payments into the loan so that sorta effectively adds about 1% to the rate.

They also wanted 3 months of payments up front

BUT, they also advance rehab draws... so that's a huge plus in being able to keep contractors paid / moving / happy... especially if you don't have a lot of cash to float in between contractor draw requests and when the HML request comes through but you are using one that doesn't advance.


 

Hey Adam....  we had some delays with our GC and Architect... and literally turned in apps a couple days after the city shut down in person visits....  I trusted my GC too much.... and thought he was working on them, but he wasn’t....   eventually I fired him, and got stuff rolling.

As it was...  turned in a couple days after they shut down

Took about 2.5 weeks to get a response with the conditions that needed addressing

Then we sat for weeks trusting my GC...  

Once I gave up on that ... just about 3 weeks ago, found out I needed a drainage permit, got a survey/site plan done for that   Got things turned in... and a bunch of emails back and forth to sort stuff out    Yea took about 2-2.5 more weeks of back and forth.

The phone is almost useless as the guy that called me back couldn’t help with anything...    just emails back and forth with the assigned reviewers and time and patience :-/

Investment Info:

Single-family residence fix & flip investment in Indianapolis.

Purchase price: $100,000
Cash invested: $35,000

Single Family 3/1 with minimal attic space, only about 1400 useable sq ft. - Building up on the back half of the house, adding a full 2nd story with 8' ceilings throughout. - Project has been delayed due to Covid19 and Architect and GC issues, but we now have permits, and have started demo. Hope to have it completed and on the market at end of July / Early August as a 4/2.5 with just under 2100 sq ft.

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

Good spread - pre-covid were expecting about 40K profit on a 320K ARV

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

MLS - offer / counter offer

How did you finance this deal?

HML

How did you add value to the deal?

adding 600 plus sq ft - complete gut / remodel - adding bed and baths.

What was the outcome?

In Progress

Lessons learned? Challenges?

Working with the city during Covid 19 is rough. Also have added one architect and one GC to my 'do not work with anymore' list due to lack of communication and followup on their side.

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

Temple View Capital - good HML so far - pretty responsive on all fronts - they do require that you have owned a house before (personal residence is OK)