All Forum Posts by: Joel Florian

I get 2 or 3 calls every week from "Suspected Spam."  Usually it is someone with a heavy foreign accent very obviously reading a script.  Most imply that I am uninformed about buying or selling real estate, and am eager to dump a property at half of Zillow's valuation.  Some start by telling me how much they like my property but then don't even know what street it is on, or even know what town it is in.  One seemed promising and we negotiated a price.   The follow up call to get details for the contract, he insisted that I had the address wrong and accused me of baiting and switching.  Turns out he was offering on my primary residence.  When I declined, he cussed me out for wasting his time.   

I just got another cold call 5 minutes ago and did a quick search on biggerpockets to find out if any investors have figured out a way to weed through the spam calls or at least cut the conversation short. All the forum posts I found in a casual search seem to be members wanting to do cold calling better. I guess the next step after hiring VA's will be to use AI -- even cheaper than 3rd world labor and no feelings to get hurt.

@Kaitlyn Castillo

I started with Airbnb and moved to Evolve to make it more passive. But it still takes some time. I believe there are management services that will make it almost passive for a fee, of course. I opted to continue because evictions were restricted during Covid. And I didn't want a tenant squatting in my house for free. With a STR, they pay up front and the day they are supposed to leave, the locks change automatically. Likely the next guest will show up a few hours later.

Check your local laws, municipalities are restricting and taxing STRs. If your area is conducive or you are willing to pay the taxes and abide by your local regulations STRs can generate incredible cashflow.

@Asa Ifill

Did you find a good CPA in AL? I am looking for one in the Huntsville area.

@Deano Vulcano  

Would you pay $75k cash or use hard money?   Or could you get a rehab loan?   How soon could you cash out refinance (I had to wait 6 months)?  Are you confident on your renovations number?   In many areas, materials and labor have become expensive and scarce (delays cost money too).   Would you self perform some of the rehab?  Based on the limited information given, it seems like a skinny margin for the cost and the risk and I wouldn't chase it myself because I think I can get a better return (with less risk) on my money and time.

Absolutely  pull equity out of your home, but only for good deal on real estate.  

Several have mentioned a HELOC. I have done both. My HELOC took about 3 weeks and my credit union did not charge for the appraisal or any other fees. A cash-out refinance for a rental property took 4 months and cost about $7k (rolled into the loan, of course) Interest rate is slighly higher on the HELOC, but I don't pay any interest until I use the money. You might shop around and compare what you can get locally. But you would be smart to start on it now so you have cash to invest when a good deal shows up. The best deals aren't going to wait even 3 weeks and certainly not 4 months.

I think STR's will be with us for the forseeable future. Government will try to regulate and tax but the nimble STR owners will work around the obstacles. I envision thousands of unarmed fishing boats and rowboats swarming around a Navy destroyer. Of course big business and government can crush any individual STR owner (no matter how creative or motivated), but millions of others will find a way. Maybe army ants mowing a swath through the jungle would be a better analogy. Even lions and bears who can crush thousands of ants without effort will run away from an army ant migration. Army ants will reduce a healthy predator to a skeleton in minutes. We lived in HI for 6 months and the STR market was thriving in spite of 30 day minimums and 30% taxes, retroactive taxes, and a $2000 bounty to rat on a neighbor. (I never owned an STR in HI). I have owned 2 STR's in Wasilla, AK and both are booming. People travel for sports events, leisure, work...(It seems that many American's would rather travel to Alaska than Asia or Europe recently) Where I now live in Northern Alabama, STR's seem popular to house contract workers, sports events, and newcomers who are waiting for a house to close or new construction to be finished. Personally, I much prefer to stay in an STR over a hotel. Usually more private, homey, more rooms. And I know that my reviews about an STR get read and make a difference. The owners of (almost) every STR I have rented were the kind of people that made our lives better by meeting. Most of our guests have been similar.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $125,000
Cash invested: $25,000
Sale price: $355,000

I would consider this a live-in flip. Home was an owner build (basically a converted shop with 1 bedroom and 1 bathroom). My inlaws did a presale inspection and mentioned that I should look at it.

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

It was close to my inlaws. It had a large, wooded lot and was not visible from the street. It had a swamp/greenspace behind and a treed vacant lot on one side. It was very private and not as windy as most parts of Wasilla.

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

My Father-in-law did a presale inspection and I walked across the swamp and talked to the sellers in person. The owners were elderly and leaving the state. I couldn't qualify for a conventional loan at the time because I had changed employment. I spoke with the daughter of the owners and asked if she would consider owner financing. She said "Possibly, with a large enough down." I asked what she had in mind and she responded with at least $20k."

How did you finance this deal?

Owner finance with a 5-year balloon.

How did you add value to the deal?

Added rooms, bathroom, new septic, lawn, greenhouse, shop, driveway.
I built a second storey on the ground. hired a crane, lifted the roof, placed the pre-built second storey on top of the 1st and then set the roof on top. That cost me about $70k. Then I built a 40 x 60 shop with a 600sf apartment above and a 20'x 16' deck and added a hot tub under the deck. The shop, parking area, and landscaping cost about $100k. To refinance as a 5 bedroom,

What was the outcome?

Sold at a small profit

Lessons learned? Challenges?

The flow of the house is important to buyers. Also cosmetics are very very important.

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

Used Realtors: Betty Keener and Terry

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $125,000
Cash invested: $25,000
Sale price: $355,000

I would consider this a live-in flip. Home was an owner build (basically a converted shop with 1 bedroom and 1 bathroom). My inlaws did a presale inspection and mentioned that I should look at it.

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

It was close to my inlaws. It had a large, wooded lot and was not visible from the street. It had a swamp/greenspace behind and a treed vacant lot on one side. It was very private and not as windy as most parts of Wasilla.

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

My Father-in-law did a presale inspection and I walked across the swamp and talked to the sellers in person. The owners were elderly and leaving the state. I couldn't qualify for a conventional loan at the time because I had changed employment. I spoke with the daughter of the owners and asked if she would consider owner financing. She said "Possibly, with a large enough down." I asked what she had in mind and she responded with at least $20k."

How did you finance this deal?

Owner finance with a 5-year balloon.

How did you add value to the deal?

Added rooms, bathroom, new septic, lawn, greenhouse, shop, driveway.
To house my family, I needed more rooms so I built a second storey on the ground. I hired a crane, lifted the roof, placed the pre-built second storey on top of the 1st and then set the roof on top. That cost me about $70k. Then I built a 40 x 60 shop with a 600sf apartment above and a 20'x 16' deck and added a hot tub under the deck. The shop, parking area, and landscaping cost about $100k. To refinance as a 5 bedroom,

What was the outcome?

Sold at a small profit

Lessons learned? Challenges?

The flow of the house is important to buyers. Also cosmetics are very very important.

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

Used Realtors: Betty Keener and Terry

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $125,000
Cash invested: $25,000
Sale price: $355,000

I would consider this a live-in flip. Home was an owner build (basically a converted shop with 1 bedroom and 1 bathroom). My inlaws did a presale inspection and mentioned that I should look at it. The owners were elderly and leaving the state. I couldn't qualify for a conventional loan at the time because I had changed employment. I spoke with the daughter of the owners and asked if she would consider owner financing. She said "Possibly, with a large enough down." I asked what she had in mind and she responded with at least $20k." To house my family, I needed more rooms so I built a second storey on the ground. I hired a crane, lifted the roof, placed the pre-built second storey on top of the 1st and then set the roof on top. That cost me about $70k. Then I built a 40 x 60 shop with a 600sf apartment above and a 20'x 16' deck and added a hot tub under the deck. The shop, parking area, and landscaping cost about $100k. To refinance as a 5 bedroom, I had to put in a new septic system which cost about $15k We added a greenhouse and a lawn for another $5k. The buyers got a VA loan so EVERYTHING had to be fixed, including $5000 to an engineer to fix a cracked truss tail, $25k to replace 2 boilers

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

It was close to my inlaws. It had a large, wooded lot and was not visible from the street. It had a swamp/greenspace behind and a treed vacant lot on one side. It was very private and not as windy as most parts of Wasilla.

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

My Father-in-law did a presale inspection and I walked across the swamp and talked to the sellers in person.

How did you finance this deal?

Owner finance with a 5-year balloon.

How did you add value to the deal?

Added rooms, bathroom, new septic, lawn, greenhouse, shop, driveway.

What was the outcome?

Sold at a small profit

Lessons learned? Challenges?

The flow of the house is important to buyers. Also cosmetics are very very important.

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

Used Realtors: Betty Keener and Terry