All Forum Posts by: Jim Stanley

Dan, I wanted to go to this but was not able.  Is there another one in this area soon?
Thanks

Thank you for this post

You probably just saved me some money 

I had 6 or 7 families come see the place today.  All them are well qualified and I truly wish I had more properties to rent to all of them.  But there are 3 families that I really like including the one that offered more rent. And, yes, all had submitted applications through Zillow including income, credit score, and background check.


I guess I could ask the others for more rent as someone suggested, but I just don't like that.  We decided to go with one of the two families that did not offer more.

Thanks for al your replies.

@Peter Jakel

It’s not a very small fee

And it’s often the difference between positive and negative cash flow

My first rental was negative cash flow after paying a manager

My next one was slightly positive with self management and had improved to good flow

It easy with newer houses, harder with older ones

@Scott M.

Thanks

I should have mentioned this is highlands Ranch a suburb south of Denver and the market is HOT. And the move in date is October 1 so I’m not terribly worried about their motivation

I’m showing a property today and 2 days from now

A tennant offered $150 over rent if he can sight today. But I haven’t shown it to everybody who applied

Seems unfair but it’s tempting

Legal?

What would you do?

Thanks

Anybody have experience with STR in Highlands Ranch? I have a 5 bed, 2.5 bath SFH there. My perfect (and only) tenants of 3+ years are moving out at the end of September and I'm considering the STR route.

Looking on the Air BNB site, I see just a couple of houses popping up in HR, so it must be legal (please tell me if I'm wrong!).  But I'm not sure if only a few pop up because it's not profitable or because they are all booked.

Some reservations I have:
-Neighbors won't like constant new people in and out (the neighbors are really good and I want to keep them happy)
-Finding/managing cleaning staff (I don't want to do it myself)
-Cash flow in off season
-Have to buy furniture and be stuck with it if it doesn't work out.  Also losing out on rent if it doesn't work out.

Any insights appreciated!

Thanks to all who have posted.

I should have made more clear that the primary goal of this for me is to learn the businesses and become a long term partner- a mentor/mentee relationship. He has been doing it for about 25 years and is quite successful.  I've seen some of his current projects and looked at the numbers.  I have no problem with working for free here.  Kyosaki (rich dad) said work for experience, not money.

As Bryan Hartlen pointed out, 2nd position is not that safe.  He doesn't need my money- he was just offering to let me get some skin in the game and make a little profit.  So, I may not put any money in at first.

Several have said that 10% is not enough and one suggested 12%, but the difference between 10% and 12% on 50k over 4 months (projected flip time) is just $333. I'm not going to sour an opportunity over a few hundred bucks.  I'm way more concerned about my principle than my interest.

Thanks again- I'll let you know what I end up doing.

Not sure if this is the right place to post, but I figured this is where the people with the right knowledge would be:

I'm a beginning investor near Denver, with 1 SFH rental, looking to learn and grow. I met a guy at a foreclosure auction who invests in a lot of things: foreclosures, buying notes, flipping houses, wholesaling, some other stuff. He has offered to teach me and let me in on some deals.

The current offer is this:
We will knock on doors of candidate properties together until I learn what to say, then I'll do it solo. If I find one that he ends up buying, he will pay me a small finder's fee. He has a money man that he borrows from, but he does still need a down payment. I will invest $50k of my money (from my self directed IRA) as part of the down payment. His money man gets 1st lien on the property and I get 2nd lien. Once the flip is sold, I get my $50k back plus 10% APR. If the deal works really well for him, I get a bonus of unspecified amount. I help out on the whole process wherever I can to learn the business.

I have no particular reason to distrust this person, but I want to do diligence and understand my risks.  Please tell me if I am wrong about anything and if I am missing anything (I'm sure I am!!)

-worst case- he just plain steals the money without giving me the lien, gives me a fake lien, etc  Pretty unlikely but plausible.
-really bad case- the house burns down and the property is worthless. Would his insurance cover me on this?
-really bad case- we buy a property that is worthless (built over a toxic dump, etc).  I should be able to mitigate this myself by doing diligence on the property before investing, and assumedly, so would he.
-most likely case- the flip just does not go well and the profit is negative (or he claims negative profit even if it is really positive).  Please correct me if I'm wrong here, but I THINK my 2nd lien protects me here.  He pretty much has to sell the house to pay back his money man (or the money man forecloses and sells it), and I get paid then, correct?  I THINK the worst that would happen in this case is that I would not get my 10% interest and my $50k principle could be tied up a long time.  I suppose he or the money man could simply keep the property and not pay me- would I have any recourse then?

- What else?

THANK YOU VERY MUCH

I was listening to the BP real estate podcast last week (I think) and one of the sponsors was a company that helps you buy short term rentals in hot markets like Destin, FL (that's the one my wife is interested in).  I was driving and didn't write down the company.  I pulled up the old episodes and cant find the ad.  I think it updates the sponsors to whoever is current?
Anyone know who that sponsor was?
thanks