All Forum Posts by: Jesse Carlson

@Andrew Earle

I would start at 10% like you said. They might push go up a percent but not a big deal. Then I agree you should have a 6 month loan. Then try to have it sold or refinance before then. I think you have a fair offer to present to the investors. Best of luck! 

hey everyone,

I’ve been off BP for a little while but ran across your thread. Just curious on your update? I have a rental property in Wellington Heights. Rents should be good enough to support your payment. You definitely have to do your due diligence on your tenants to find the better tenants. I haven’t heard a lot of bad things about this neighborhood. 

The city of Cedar Rapids does require you or your property management company to be registered landlords and attend a landlord training class. Class is worth attending if you’re just starting out as a landlord. 

I’ve been to the Cedar Rapids and North Liberty meetup groups. I also joined the joint venture group through those meetups. @AustinDavis is a good connection in that group. I’ve met many other good people through those meetings. 

@Andrew Earle

I was just discussing something like this today with a friend.

1) Look for a hard money loan. Depends on the HML, you could see a 10-12% interest rate or higher.

2) Could you present the deals to banks if you have enough equity to finance the deals into your portfolio?

3) wholesale them

Ryan Ridgley I had the same thing with contractors. I live in Iowa City, IA which is a hot market around here. All the contractors around here are always busy. So trying to get them to travel to a smaller market, 40 minutes away, was hard and any contractor around wanted a lot of money. I had a couple bids for plumbing (rerun supply lines in pex from copper as mentioned above and set fixtures) for $6,000 to $8,000. I did it for a fraction of the cost but it cost me more time. The Midwest is a hugely growing market. And I predict that it will continue to grow. Recently the Midwest was named the best part of the country to live in. Congratulations on your first deal. I’m mainly focusing on wholesale and flipping. I will have rental properties and look to build properties too. What are your goals?

Hey everyone! It’s been a long time since I’ve posted on the forums. I’m wrapping up my first deal to put on the market. How I found this deal: I posted an ad on Craigslist targeting a local area for back taxes, foreclosures etc. I got a reply from a distressed seller who was about to lose his house in 10-14 days due to back property taxes. The sellers owned their house outright. They had bad credit and couldn’t just get a loan to pay off their taxes. The sellers said they had the title in hand but weren’t able to find it. So now a title had to be built which can take up to 7-14 days or so depending on different scenarios (I’m not an attorney or a title company, so check your local regulations) So now I had to get creative to buy time. I have a hard money loan for this deal. I talked to my lender about lending them enough money to pay their taxes to buy us time to complete the transaction. He agreed that would be possible so he had his attorney draw up paperwork and paid the back taxes and made the loan subject to the house being sold to me. Title came back after a couple weeks and then we went to closing at my hard money lenders attorney office. The sellers were having a hard time finding a new place to live in such short notice that I offered them ten days after closing to be able to move. I took possession of the house. OMG! They left everything! Let the cleaning begin! This house was packed full in some rooms that you couldn’t open doors. I started on Day 1 by myself. It was overwhelming! So this house is in a smaller town in Iowa. (It’s about a 40 minute commute for me one way to drive here. ) I called around to the waste management company’s and none of them had a big dumpster (40 cubic yard)for at least a week or two. So I had a smaller one (4 cubic yard) delivered to get started on tackling this mess. That took no time to fill. I hired Craigslist help to help clear the mess. Until the dumpster arrived I told them to pile it in the back yard (p.s this won’t make your city happy, but if you’re nice to them, they will play nice back) I filled up the 40 cubic yard dumpster easily and kept the smaller dumpster and have had that emptied several times. Eventually with enough help from friends and Craigslist help I got it cleaned up. Next I put in a new Electrical panel. I’m an electrician. So I pulled permits with the city. Then I removed all the knob and tube and reran everything in Romex. That task wasn’t very easy. As you might guess, this house is old. 1914 old. Plaster and lathe still everywhere. I wall fished a lot of romex and coax. I subbed out some things. Flooring in the kitchen is LVP. Painting is a must to sub out. I didn’t sub out drywall for the ceilings. I hung 30 sheets of drywall (4’x8’x 1/2”) on the main floor ceiling with a drywall lift by myself. I mudded, taped and textured everything. I can do it but this was the first time doing it at this scale. I reran a lot of plumbing with pex for the main floor through the basement. Throughout the house is small strips of oak flooring. Main floor has quartersawn oak and upstairs has regular oak. I used a drum sander and sanded what I could. All the boards were cupped. Old Shellac and wax finish that I sanded off. Lots of hours sanding. Then I distressed the floors using vinegar/ steel wool mixture. Take one gallon vinegar and some heavy gauge steel wool and mix them together. Let them react for overnight. It really depend on how dark you want the distressed to be. I let it sit for 8 hours or so before I wiped it on the floors. When it dries it gave a greyish tint. If you let the mixture set for 3 days then you will have a charcoal color of flooring. Then polyurethane. 2 coats of polyurethane. I have spend many hours working on this house. I have put a ton of sweat equity into this property. I have tons of pictures uploaded to my Facebook- Kharmarelic Investments. Please check them out. I haven’t updated my website in awhile. So I will get a blog posted on there. Start updating stories. Purchase price is $38,500 Rehab is $35,000 Hard money loan points Insurance is $1600 for the year Electric, gas, water bill was $1000+ Property taxes- $2,600 Arv $160,000 Profit- TO be determined Lessons learned- priceless My first deal is about to be under my belt.

I have for sale a charming classic 3 bed 1 bath house on Cedar Rapids SE Side. 

Hey Nick, thanks for connecting with me. I currently don't have anything under contract yet in IC. I'm working on a couple leads right now. We could get together for lunch sometime and I can show you what I'm up to. 

Hey everyone,

As the title says, has anyone ever used a Master Lease Option creatively to buy a portfolio from someone? I've come across a couple deals where the seller has a portfolio of 5-20 properties and will consider selling them under contract. The seller wants 10% down to cover legal fees and such, but as a newbie investor I'm not in a position with that much capital available right now. What are some options to cover that 10% down creatively? 

Hello Everyone, I'm in the Iowa City, Cedar Rapids, and Clinton Iowa Markets. I have 3 properties under contract and no funding lined up for them. The 3 properties are lined up to close in the next few weeks. 

1st property is at 348/350 8th Ave SW Cedar Rapids. This is a turn key duplex I have under contract at $81,000 with seller paying closing costs. ARV is around $90,000. One unit is currently rented out at $650 and second unit will be rented out also at $650. I have the Inspection done here. Exit strategy is cash out refinance

Property #2 is 3710 A Ave NE - purchase price of $18,500 with seller also paying closing costs. Rehab needed will cost $60,000 with ARV of $103,000. 3 bed/1 bath. Exit strategy for this is rent out after rehab and refinance.

Property #3 is 2701 Pershing Blvd in Clinton IA. This is a 4 plex with each unit currently rented out. 1 tenant is a long term tenant. each unit is a 1 bed/1 bath. Purchase price is $84,900 and ARV is $90,000. No repairs needed. Seller pays closing costs. Exit strategy is again cash out refinance.

I've come across other off market deals also. 

I was an electrician until the beginning of June when I got laid off. I'm currently utilizing my time off to find deals and get as many deals done under my belt. If you would like to structure a partnership in just the down payment support or 100% finance, I would like to work something out with you. 

Thank you for taking the time to read this. 

Jesse Carlson

Kharmarelic Investments LLC

I would say make it a win- win for both of you by talking to the tenant. Talk to them and let them know that it is against the lease to do AirBnB but if they will agree to redo their lease so you can increase their rent a little bit, so you benefit more and make it mandatory the tenants carry renters insurance in case something happens during an AirBnB stay. The renters insurance should help so you don't take a major hit on your insurance, should something happen to their stuff. Then it can be up to you to renew their lease moving forward and do the AirBnB yourself.