All Forum Posts by: Jordan Northrup

I'm a BRRRR investor with property in Ohio and Virginia. A long-time mentor of mine is offering to sell me a commercial property of his. There are 3 leased units on the ground floor (15 year leases) and 1 apartment upstairs. There is an additional 2500 sqft of undeveloped space on the second level that could be turned into more apartments.

I'm looking for commercial evaluation tools to help me analyze the data he's given me. Does anyone have any excel models that they'd be willing to share to help me out?

Investment Info:

Townhouse buy & hold investment.

Purchase price: $255,000

This is the townhouse we lived in when we were first married. We bought a SFH nearby for our expanding family. The townhouse makes for a great rental!

How did you add value to the deal?

We remodeled almost every room over the course of several years. Each room has a lot of character that appeals to renters.

Thanks Whitney!

Thanks Kenneth, So here's a little more information. The lender is an extended family member who's got about $300,000 from the sale of an extra house. SHe's very risk adverse and doesn't want to do the stock market. She's going to loan to me at 5% with a balloon payment after 365 days. I'm going to be investing out of state because the prices in Northern Virginia are more than she can afford.  So I'll go back to my hometown in the midwest and invest. Between the purchase and rehab, I can be all in for less than $50,000. 

So you're suggesting that once I have a property I want, get a lawyer involved and have them draw up the paperwork for the particular deal so I can get the money from her and send it to a title company?

Hey all, so I know someone with significant cash resources they'd like to put to work. I'd like to find a sample contract that I could create so that the lender is protected and I have a promissory note that holds me accountable and that proves where the money came from when it comes time for refinance (and taxes). 

Am I thinking on the right track here? Does anyone have a contract I use?

Hey David, thank you for your advice. I've done 3 deals so far. I found them all on the MLS and put 20% down. Since then, I've aligned with a private money lender; now I'm shifting my focus to BRRRR. I totally get what you're saying about acquisition costs and ROI vs. time spent. I've already spoken to my county offices to get records, but they're denying my requests based on the FOIA legislation in Virginia.

Thank you for the advice everyone.  To help the conversation along, I should probably add more context. Here's what I requested from my county's public utilities office..."I would like to get a list of all county properties that have had water/sewer services shut off for more than 3 months."  My logic is if the water/sewer has been turned off for 90 days, it's most likely vacant. 

Hey everyone, has anyone had success in pulling lists/leads from your local county courthouse? I was listening to episode 332 of the BP Podcast recently. Brent Moreno and his partner were being interviewed and they mentioned how they go to their local county courthouse and request lists of vacant/distressed properties. I tried to do the same thing but got denied because that type of information is exempt under FOIA rules. 

Does anyone know of a workaround?

Investment Info:

Single-family residence buy & hold investment in Stafford.

Purchase price: $298,000
Cash invested: $60,200

1400 Sqft single family ranch.

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

Helping family and passive income.

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

MLS. Property received multiple offers, some higher than ours. We wrote a letter to the sellers and they chose our offer.

How did you finance this deal?

20% down, conventional financing.

How did you add value to the deal?

Nothing yet - property was turnkey. Will knock down interior walls to open the space after the first year.

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

Realtor: Mike Asmus

Lender: Laura Labow @ JGW

Hi Scott, thank you very much for the detailed advice. I'm inclined to agree with everything you said. Right now, I have no need of a partner. There is only one guy who I'd consider partnering with. We served together in the Marines and have worked together outside of the military for several years. He's got an entrepreneurial mindset too. But, like I said, I don't need a partner right now. I've already formed an LLC for my business. Should we ever partner down the road, I would certainly have my attorney develop an OA that spells out all of the nuances and situations. Would you by chance have a sample OA that I could look at to get some ideas?