All Forum Posts by: Joshua Austin

Hey @John Paniagua Our company has many years Of experience in this area. We currently manage a few hundred single family/small multi family homes in the area as well as 15 associations with over 2000 doors. We manage a 112 unit condominium complex near coffee bluff that would be very similar to this. I would be happy to schedule a meeting if you are interested. Our website is on my profile. I don’t believe I can market my services in this forum. 

Investment Info:

Single-family residence buy & hold investment in Savannah.

Purchase price: $161,000
Cash invested: $22,000

Contributors:
Henry Jenkins

This was a seller finance purchase of 3 separate condos in the same complex.

$55,000 - (turnkey tenant occupied at $825)

$53,000 - (needed about $3500 worth of work, rented for $825

$53,000 - (complete reno at around $8500, projected rent is $925)

The seller financed these three properties for 100% of purchase price.

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

The 100% seller financing

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

This was a client of the company I work for who I became friendly with and began negotiations with for seller finance

How did you finance this deal?

I brought in a partner to cover closing costs and around 75% of renovation costs.

How did you add value to the deal?

We renovated two of the three condos and bought them at a discount

What was the outcome?

All three rented and cashflowing!

Lessons learned? Challenges?

I have to stop doing all of the renovations myself. My time is becoming more scarce and I need to be leveraging that.

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

Both myself and my partner on this deal are licensed real estate agents.

This is a letter we emailed to all of our tenants yesterday:

As you know, rent will be coming due on April 1st. Like so many others, we at Frank Moore & Company are taking the Coronavirus concerns very seriously and we are seeking to abide by the current CDC guidelines regarding social distancing. As we all attempt to keep each other healthy during this time, we would like to remind all of our tenants of the various ways they can pay their rent. One of the easiest and safest ways given the current circumstances is to pay your rent online. This can be accomplished through your tenant portal which can be accessed via our website at www.FrankMooreCo.com. If you have not set up a tenant portal, you may contact us directly to help you through the process (see contact info below).



In addition to this, our team will be utilizing the various tools and systems we have to work remotely when possible. What this means is that our office hours will vary in the coming weeks. We of course will have our door slot available for money orders to be accepted but we HIGHLY DISCOURAGE cash payments using this process. Instead, consider getting a money order OR using a CVS Pay Slip to pay your rent. Pay slips are a convenient new way to pay your rent at a local CVS rather than making the drive into our office. They do accept cash for these payments as well. Pay Slips must be activated on your account. To find out more, please contact our office via phone or email and we would be happy to set this feature up for you.



Lastly, we would like to leave you with some encouragement. We know this situation may affect many of our residents in an adverse way economically. If you find yourself in crisis, please reach out to us and we can discuss our longstanding policies. As always, we are here to give your a great resident experience and to take care of your needs and comforts concerning your property. Please stay safe. Don’t overdose on the bad news. Get out of the house for a walk, check on an elderly neighbor, and focus on some positive ways to assist others.

@Bhanu Kuna In GA, all property managers must also be Licensed Real Estate agents. I’m not sure the same is true for Pennsylvania but it may be a great place to start. Many property managers are investors themselves and if they are not then you wouldn’t want to be using them for anything. But beware, a good PM isn’t always a good Sales agent and vice versa.

@Michael Lowe I get this from my dad as well. He is so very risk averse. My dad lives in a paid for house because during the recession, he (like so many others) panicked when he saw his 401k on a steep dive down. Rather than hold on, he cashed out his 401k and paid off his house.

Recently, I asked him this: “Dad, why didn’t you sell your house when values were plummeting also and just go rent until the market came back up?”

I didn’t need him to answer the question because it was so obvious. Real Estate one of the safest investments. That thought never crossed his mind and for good reason.

As it pertains to your friends and family, it’s not your job to convince them. I would target their rebukes with well formulated questions that cause them to examine their own false biases.

We manage a condominium complex around 10 min from downtown. It's located on white bluff road. I own 4 condos in that complex as well and we manage around half of the rentals. Its great for renters and there are several owner occupied units. Very low maintenance. $200 monthly HOA but they cover water, trash, and oest control as well. Rents are around $900 currently and condos sell around $70k right now.

One of my close friends is a contractor and an investor himself. His name is Robb with Half Moon Homes. I'm not sure if BP will let me post a link here. Another option is we manage a ton of properties and do rehabs for our clients. May be worth chatting about it to see what the scope of works entails. Feel free to reach out to me.

Investment Info:

Single-family residence buy & hold investment in Guyton.

Purchase price: $139,900

This was my personal residence for 12 years. I purchased it in 2007 and in 2019 I turned it into a rental and purchased a new personal residence. My monthly cashflow is fantastic at $400 and I have around $45K in equity at this point in the home.

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

It was an easy and natural method to add a rental unit to my portfolio.

How did you finance this deal?

100% financing, USDA loan

How did you add value to the deal?

Over the years I have renovated and made the home nice so it was very easy to place a tenant. I had 2 weeks of vacancy.

What was the outcome?

PITI payment is $872 per month. I have it rented currently for $1295.00 per month.

Lessons learned? Challenges?

With this method there were very few challenges. The main challenge for many people is turning a home they have lived in for so long into a rental because they have emotional attachment. You have to overcome that.

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

I am a realtor.

@Sujan Basnet I would need to know which areas exactly. Certainly there are areas in west Savannah that I personally would avoid but there are some closer to Chatham Parkway and HWY 17 that I think have great potential. 

@Jamie Spitale I will Direct Message you