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All Forum Posts by: KC Pake
KC Pake has started 17 posts and replied 166 times.
Post: property management software
- Investor
- Orange Park, FL
- Posts 169
- Votes 106
Quote from @Matt Perez:
Hi Bigger Pockets community
I have 1 rental so far and was wondering what would be the best management software to use as I begin this journey.
I currently have a property managing company in place and I want to get rid of them and keep the money myself to increase my cashflow. They use hemlane and its pretty simple program so maybe I will just keep using it but I am also looking for other options before I commit. I went online to look there are so many available and lots depending on how many homes you have.
So I am just looking to see if there are any recommendations from the BP community to help my decision.
Congratulations on your first rental property! It's great that you're considering managing it yourself to increase your cash flow.
Since you're already familiar with Hemlane and find it simple to use, it could be a good option to continue with, especially as you're just starting out in property management. Familiarity with the software can be a significant advantage.
However, it's always wise to explore other options to ensure you're using the best tool for your needs. Here are a few other property management software options you might consider:
Buildium: This is a popular choice for many property owners. It offers a wide range of features, including accounting, tenant screening, and maintenance request tracking.
AppFolio: Known for its user-friendly interface, AppFolio provides property management solutions that include online rent payments, maintenance requests, and marketing tools.
Cozy: Ideal for individual landlords or smaller portfolios, Cozy offers rent collection, expense tracking, and listing capabilities. It's known for being very user-friendly and cost-effective.
Rentec Direct: This software is known for its excellent customer support and includes features like property accounting, tenant screening, and online rent collection.
Propertyware: A good choice for those with a larger portfolio, Propertyware offers customizable solutions that include maintenance management, accounting, and marketing tools.
Each of these software solutions has its own strengths and pricing structures, so it would be beneficial to compare them based on your specific needs and the number of properties you plan to manage.
Best of luck with your property management journey!
Post: Who brought the new guy?
- Investor
- Orange Park, FL
- Posts 169
- Votes 106
Quote from @Dillon O'Connell:
Hello bigger pockets community, I am really excited to be here! My name is Dillon O'Connell and I am a 22 year old newbie within the wild world of Real Estate Investing. Currently, studying Mechanical Engineering at the University of Central Florida in Orlando I have 6 months left until graduation [with Very little student loans] and I have been bitten by that REI bug. I was introduced to REI after reading Rich Dad Poor Dad by Robert Kiyosaki and then finding the BP podcast [which ultimately is who brought the new guy :)]. For the past couple of months I have done a lot of listening, watching and learning about all things real estate. I am incredible motivated and I've never been more excited about getting involved but I feel stuck, so I'm seeking advise. Like I mentioned I graduate in May 2024 and I do not have a job lined up... yet, but I want to get involved now. I would really like to invest in long term rentals, but I do not know where I may end up working or living after graduation, which is leading me think of investing in non-local markets. I know this is completely possible but having a difficult time creating a strategy. I look forward to all of your suggestions and advice. Thanks everyone and thank you Bigger Pockets!
Your situation is quite common among new graduates. Wanting to invest in long-term rentals is a solid strategy, but uncertainty about where you'll be located post-graduation does add complexity, especially if you're considering non-local markets. Here are a few suggestions:
Education First: Continue educating yourself. Since you're still in school, use this time to learn as much as you can about REI. This includes market research, understanding financing options, and learning about property management.
Networking: Engage with local real estate groups in Orlando. Networking with experienced investors can provide you with insights and potentially lead to partnerships or mentoring opportunities.
Research Non-Local Markets: If you're considering investing in non-local markets, start researching areas that are known for stable rental markets. Look for regions with strong job growth, good schools, and other factors that contribute to a strong rental demand.
Financial Planning: Ensure your personal finances are in order. This includes saving for a down payment, understanding your credit score, and being aware of how your impending job search might affect your ability to get a loan.
Consider Your Post-Graduation Plans: While it's challenging to plan without knowing where you'll be working, try to align your investment strategy with your career goals. For example, if there's a high likelihood of you staying in Florida, focusing on the local market might be beneficial.
Start Small: You might want to start with a smaller investment that requires less capital and management. This could be a single-family home or even a small multifamily property.
Remote Management: Learn about property management options, especially for non-local investments. This includes understanding the costs and logistics of managing a property remotely.
Remember, every investor's journey is unique, and it's okay to take your time to figure out what works best for you. The Bigger Pockets community is a great resource, so keep engaging, asking questions, and learning from others' experiences.
Good luck with your last semester, and here's to a successful start in real estate investing!
Post: Marketing for investor leads
- Investor
- Orange Park, FL
- Posts 169
- Votes 106
Quote from @Joseph Cascun:
Curious to know what marketing services, tools, platforms, etc investors use for their marketing to attract investor leads, and seamlessly integrate / automate the marketing process. This could be social media posts, blog posts, newsletters, videos/reels, CRM, post schedulers, SEO—anything that has helped . I realize advertising and marketing is prohibited when raising capital under some securities regulations.
For context, I’m looking to produce more content to help consistently educate potential investors that are both active and passive, and also tell my story, and investment projects I’m currently involved in to expand my network as I continue my investing journey.
Would appreciate hearing what has and hasn’t worked for you or your teams
Great question! It's essential to find the right balance in marketing strategies, especially in the investment sector where regulations can be stringent.
Content Marketing: Producing high-quality, informative content is key. This can include blog posts, newsletters, and educational videos. Platforms like WordPress for blogs, Mailchimp for newsletters, and YouTube for video content are excellent. The goal is to provide value to your audience, positioning yourself as a knowledgeable source in the investment field.
Social Media Presence: Utilizing platforms like LinkedIn, and Instagram can be effective. Tools like Hootsuite or Buffer help schedule posts consistently. Tailoring content to each platform's audience is crucial—for instance, more professional content on LinkedIn and more visual, engaging content on Instagram.
Bigger Pockets: An invaluable platform for real estate investors. By participating in forums, writing blog posts, and networking with other investors on Bigger Pockets, you can significantly expand your network and connect with both active and passive investors.
Search Engine Optimization (SEO): To ensure your content reaches the right audience, invest in SEO. Tools like SEMrush or Google Analytics can provide insights into how your content is performing and how to optimize it for better reach.
Customer Relationship Management (CRM) Systems: Platforms like Salesforce or HubSpot can help manage and nurture leads. They allow for tracking interactions with potential investors and automating certain aspects of communication.
Webinars and Online Events: Hosting webinars or participating in online investment forums can increase visibility and establish your credibility. Tools like Zoom or WebEx can facilitate these events.
Best of luck and keep us posted on your marketing success!
KC
Post: How to find buyers for a ranch
- Investor
- Orange Park, FL
- Posts 169
- Votes 106
Quote from @Alexis Morin:
Hi all-
I manage a breeding facility for horses. It’s on 132 acres of mostly pasture. There are 2 nice homes, 3 mobile homes, 2 small barns, 2 equipment sheds, 3 wells.
The owner doesn’t want to list it. I’m looking for a private buyer and have it on some niche pages like horseproperties.net and land.com but these are drawing zero leads. I think the land would honestly be more valuable for investment rather than a breeding facility but I don’t know how to approach pivoting my marketing pitch away from horse people towards investors. Would love thoughts and ideas!
Oh, they place is in Valley View TX, an hour north of downtown DFW.
Many thanks!
Given the size and facilities of your property, it's clear that it has a lot of potential, both as a horse breeding facility and for other purposes. You've already listed on niche sites like horseproperties.net and land.com, which is a great start.
Highlight Versatility in Listings: When advertising the property, emphasize its versatility. Highlight the features that could appeal to a wider range of buyers, such as the size of the land, the existing homes, and infrastructure like the wells and sheds. This can attract buyers interested in agriculture, ranching, or even real estate development.
Utilize Social Media and Online Platforms: Don't underestimate the power of social media and online real estate platforms. Websites like Zillow, Trulia, and even Facebook Marketplace can reach a wide audience.
Engage with Real Estate Agents Specializing in Land and Investment Properties: Contact real estate agents who specialize in land and investment properties. They often have a network of potential buyers who might be interested in such a large and versatile property.
Explore Local Investment Groups and Real Estate Forums: Since the property is near DFW, there might be local investment groups or real estate forums interested in such opportunities. Engaging with these groups can provide valuable exposure.
Create a Virtual Tour: A virtual tour can help potential buyers from afar appreciate the scope and potential of the property.
Market to Different Industries: Think beyond the horse breeding industry. The property might be suitable for other agricultural ventures, eco-tourism, or even as a retreat center.
Offer Detailed Information: Provide detailed information about the property, including its potential for development or conversion to other uses. This can help investors understand the opportunity.
Consider Professional Property Valuation: Having a professional valuation that highlights the investment potential could add credibility and attract serious buyers.
Below are a few website options for your review:
These websites cater to a niche audience interested in agricultural, rural, and farm properties, and can be an effective way to reach potential buyers:
LandWatch: This is a popular site for listing and finding rural properties, including farms, ranches, and undeveloped land. It allows property owners to list directly and reaches a large audience interested in land investments.
Land And Farm: This website specializes in farms, ranches, hunting land, and other rural land for sale. It's a great place to list properties as it attracts buyers who are specifically interested in this type of real estate.
LoopNet: While known for commercial real estate, LoopNet also lists agricultural properties. It's a good option for reaching investors who might be interested in the potential of your land for non-agricultural development.
Craigslist: Although more general, Craigslist can be effective, especially for local exposure. It allows you to list properties for free and can be a good way to reach a local audience.
Zillow and Trulia: While these are more mainstream real estate websites, they do have sections for farms and ranches. They can provide significant exposure due to their popularity.
Lands of America: Part of the CoStar Realty Information, Inc. family, this site is dedicated to rural and agricultural properties, including farms, ranches, timberland, and more.
LandLeader: This is a marketing and real estate listing service that specializes in high-quality rural, farm, ranch, recreational, and timber properties.
Ranch World Ads: Focused specifically on ranch properties, this site can be a good place to list if your property has the infrastructure and potential to be used as a ranch.
Each of these websites has its own audience and reach, so you might want to consider listing your property on multiple platforms to maximize exposure. Remember to include detailed descriptions and high-quality photos to make your listing stand out.
Best of luck finding a buyer,
KC
Post: Please advice on a New Construction sale
- Investor
- Orange Park, FL
- Posts 169
- Votes 106
Quote from @Zbigniew Mazurek:
I'm selling a new construction house as an individual without a Real Estate agent. House is listed for $425K and I have 2 offers on the table.
1st offer:140K down payment, rest conventional mortgage
2nd offer: 10K down payment, rest VA loan
Closing date similar, there is a wiggle room if needed.
While it's tempting to accept the higher offer, I'm not sure if the house will appraise for $425K. Thank you for any advice you can give.
Hi Zbigniew,
Down Payment: A larger down payment, as in the first offer, often indicates a buyer's stronger financial position but doesn't guarantee the house will appraise at the selling price.
Appraisal Concerns:
Conventional Mortgage: If the appraisal is lower than the selling price, the buyer might need to renegotiate or bring additional cash.
VA Loan: Strict on appraisal values; the purchase price can't exceed the appraised value, which might complicate negotiations if the appraisal is low.
Closing Process: Similar timelines for both, but consider any specific requirements or contingencies, especially with the VA loan.
Financial Security of Buyers: Assess each buyer's financial stability; a larger down payment usually indicates more liquidity.
Seller’s Closing Costs: With a VA loan, some costs might fall on you as the seller.
Your Comfort Level: Choose the offer that aligns with your financial goals and comfort level, considering both the financial security and the potential complexities of each offer.
Good luck with you deal
Post: FHA Loan Source of Income Question
- Investor
- Orange Park, FL
- Posts 169
- Votes 106
Quote from @Claudia Acanda:
Hi everyone,
I am currently looking into the FHA loan and wanted to use it to purchase my first property (duplex) with it however, I do not have a source of income (I am currently attending graduate school) but I can have a co-signer. Can I still quality for this FHA loan or is their other options I can use/ do since I have no income?
Thank you in advance for your help/advice.
Please a list of my thoughts below:
Co-signers Allowed: FHA loans permit co-signers, whose income and credit will be considered.
Income Proof: You'll need to show a stable income, for which your co-signer's income might qualify. Remember if you have no income source, they will need to qualify with their Debt To Income (DTI) alone.
Credit Requirements: Good credit scores improve approval chances; both you and the co-signer's credit histories matter.
Debt-to-Income Ratio: Typically, a maximum 43% DTI is required, comparing debt payments to monthly income.
Down Payment: A minimum of 3.5% down payment is needed for credit scores 580 and above; 10% for 500-579 scores.
Residency: You must occupy the duplex as your primary residence for at least a year.
Property Standards: The duplex must meet FHA's safety and structural standards.
Alternatives: Consider other loan options like conventional loans or first-time homebuyer programs if FHA isn't suitable.
Best of luck,
KC
Post: Opinion needed on Riverfront Castroville Home/Land in Flood Zone
- Investor
- Orange Park, FL
- Posts 169
- Votes 106
Quote from @Seini Vi:
I have 6 acres of riverfront property in Castroville, TX less then 2 mins from town square. Some of you may know that San Antonio is expanding towards Castroville with all the home communities coming down 90 and the town is now having a large home community built in it starting at 450k+. My land has the Medina River flowing through it. It is in the flood zone, has a 1000sqft home built on concrete slab, a garage, horse barn, water well, and unattached building which was being converted into airbnb. I've had 2 real estate agent groups come and both suggest different starting sell price: one at 500k, the other at 200k.
Both groups were interested in partnering up to turn the property into an airbnb rental investment.
We've had 2 locals offer 120-180k, their given reason was "no higher because it's in the flood zone and isn't worth anything".
There is also another property very similar also in Castroville TX (8 acres, river front, 1200 sq ft home in the flood zone) that is listed for 1,200,000, though that's been sitting for nearly 3 yrs now.
A neighbor whom I share an easement with (who is also in flood zone with riverfront ) rents his property out for party celebrations/camping/etc. and is currently building a 500k home on his property.
I would be happy at selling at $650,000 to an investor or to anyone really. My thoughts are the town is growing and if there are people willing to buy one of the new houses in the home developments for 450k then a 6acre home on riverfront for 650k isn't so bad is it? The property can be compared to Gruene River Road in New Braunfels.
An investor could put cabins on the property or a home builder could put at least three more houses on the property and sell them individually as river front homes.
I've tried to reach out to land acquisition at some of the known home building companies in San Antonio but having to find contacts & being sent straight to voicemail seems to be an never-ending loop.
I'm in need of opinions. Am I delusional for thinking I could sell for this price or am I being reasonable ?
Hi Seini,
Your situation with the riverfront property in Castroville, TX presents an interesting scenario, especially with the growth in and around San Antonio. While you have a potentially valuable piece of land, there are several factors to consider, particularly the implications of being in a flood zone.
Firstly, it's positive that the area is developing, with new home communities emerging. Your property, with its existing structures and riverfront location, could be highly appealing. However, the flood zone designation is a crucial aspect. Properties in flood zones are subject to FEMA regulations, which include restrictions on building and remodeling. For instance, any new construction or substantial improvements must be done in a way that minimizes flood damage. This often means elevating buildings above the base flood elevation level. These regulations could impact the feasibility and cost of developing the property, whether for personal use, selling, or renting.
The wide range in valuations (from $200k to $500k) you received from real estate agents needs careful consideration. This variance might reflect different interpretations of how the flood zone impacts property value. The lower offers from locals citing the flood zone as a detractor are indicative of the challenges in pricing such properties.
Comparing your property to a similar one listed at 1.2 million is useful, but its prolonged time on the market suggests overpricing, possibly due to the flood zone challenges.
Your target selling price of $650,000 might seem reasonable given the growth prospects of the area and the property's attributes. However, this figure should also reflect the limitations and additional costs imposed by FEMA regulations on flood zone properties. Prospective buyers or investors will consider these when assessing the property's value and potential.
Good luck & keep us posted.
Post: First Deal- Analysis Paralysis and Unsure If Good Deal
- Investor
- Orange Park, FL
- Posts 169
- Votes 106
Quote from @Jonathan Abrado:
Hi BP Community,
Newbie here!
I currently have an off market deal under contract in Stamford, CT from a family friend. Originally was trying to do a seller finance deal and they were open to it, but things got a little complicated.
Background:
Legal 3 Family home with long term tenants and has other streams of income attached to the property off the books, so it cash flows very nicely. Market value is over $800k and they have agreed to sell to me for $780k. The current owner lives in one unit, and rents out the two other units, WELL under market. The issue we are having is the property doesn't "legally" cash flow enough to qualify for DSCR, and, for seller finance, they have unrealistic terms. The owner wants to sell the house, but also be allowed to live there (possibly for free, maybe pay rent, not sure yet) until they close on their next property. They want a big down payment as well, basically enough to alleviate a financial issue, and enough for a downpayment on the next purchase. I've explained its very rare and almost impossible to name your price AND your terms.
So, because I don't qualify for DSCR at the moment, I can possibly get a bridge loan to acquire the property, charge them rent until she finds a place, bring the other units up to market rents, and then refi out within 8-12 months. I was also thinking for selling financing by paying off their financial issue as part of the down payment now, throw a little extra on top as cushion, call it $100k, and then monthly payments towards the purchase price, that will also go towards her downpayment, and then another lump sum 5-6 months later to go towards the rest of her down payment, since the likelihood of her finding a place and closing in 30-60 days is low.
Does anyone else have any other creative ideas on how to either present seller financing to them and not have to find a lender, or a solution outside of conventional and DSCR to acquire the property?
Thank you!
-Jon
Welcome to the BP Community! It sounds like you've got an interesting situation with your off-market deal in Stamford. It's great that you have the deal under contract, especially one that appears to have solid income potential. However, the complications you're facing are not uncommon in real estate transactions, particularly when dealing with seller financing and properties that don't meet traditional lending criteria "DSCR."
Here are a few thoughts and potential solutions:
Seller Financing Structure: Since the seller wants a significant down payment and the right to live in one of the units, you might want to propose a leaseback agreement as part of the seller financing. This would allow them to continue living in the unit for a specified period while paying rent to you. This rent could be structured as part of their installment payments for the sale of the property. Not sure I would allow them to live at the property for free, as it would be a disincentive for a near-term move.
Bridge Loan Option: As you mentioned, a bridge loan could be a viable option to acquire the property quickly. You can use the loan to cover the purchase price and then work on adjusting the rent to market rates to increase cash flow. Once the property's financials are more stable, you could refinance with a more traditional mortgage product.
Partnership or Joint Venture: If financing is a challenge, consider bringing in a partner or forming a joint venture. This partner could provide the necessary capital for the down payment and share in the ownership and profits. It's a way to spread the risk and also meet the seller's financial needs.
Creative Financing Methods: Other creative financing methods, such as a wrap-around mortgage, might be worth exploring. This involves you taking on the existing mortgage and creating a new larger one that wraps around the existing debt.
Negotiation on Seller's Terms: It's important to negotiate the terms with the seller. While it's rare to get both the price and terms you want, there might be room for compromise. Maybe the seller would be willing to pay a reduced rent or agree to a shorter leaseback period.
Best of luck with your investment!
Post: GROUP HOME BRRRR - Found a house
- Investor
- Orange Park, FL
- Posts 169
- Votes 106
Quote from @Christina J Allen:
HELLO EVERYONE!
I have been given the vision of providing housing for the needy. I have been identifying houses that could work with the BRRRR method (or close to it) and I plan on getting 10X traditional rental prices by creating cooperative living environments where I charge by the bed.
I am new to this journey and I have identified a house close to me. I am thinking about putting in offer and I am looking for guidance as I go. I have been blessed with tenured help in the real estate world and I am posting in this forum hoping to have accountability as I face my fears of the unknown. I am currently here:
House purchase price : $125K max (preferably lower)
Renovation costs : $125K (overestimation)
ARV: roughly $300K minimum
Refinance: ---- pending analysis---
If you have time, please click the link to see the house and give any insight or things to consider. As always, I appreciate any assistance and guidance in advanced.
https://redf.in/MEeRV0
It's great to see you're considering a BRRRR (Buy, Rehab, Rent, Refinance, Repeat) property for investment, especially providing housing for the needy! This strategy can be highly rewarding, but it's wise to approach it with some key considerations in mind.
Firstly, regarding the potential structural damage, I noticed in some of the ceiling pictures. It is essential to get a thorough inspection. Roof repairs can be costly, so knowing the extent of the damage upfront will help you budget accurately. Sometimes what seems minor could be more significant upon closer inspection (mold, new code rules for insurance purposes "hurricane clips", etc. Speaking of insurance, make sure you do some shopping. Florida has become very difficult and expensive for property insurance.
Another critical factor is the lead time for contractors. Currently, the demand for skilled contractors is high, which could mean a longer wait time before starting your rehab work. This delay could impact your timelines and carrying costs, so it's something to factor into your overall budget and strategy.
Here are some key points to keep in mind:
Budgeting: Ensure you have a realistic budget, including potential structural repairs, and large appliance replacements. Also, include a cushion for unexpected expenses.
Timeframe: Be prepared for possible delays in getting contractors. Plan your finances to account for a longer holding period before the property generates rental income.
Market Research: Understand your local real estate market well. This knowledge will be invaluable in making informed decisions about renovations, refinancing, and renting out the property.
Exit Strategy: Always have a plan B. In real estate investing, it's essential to be prepared for various scenarios.
Best of luck and keep us posted on your progress.
Post: Can a SBA 7a loan be used for ground up construction of a vacation rental property?
- Investor
- Orange Park, FL
- Posts 169
- Votes 106
Quote from @Pat Pindelski:
Can a SBA 7a loan be used for ground up construction of a vacation rental property? If not is there something similar that can be?
SBA 7(a) loans cannot be used for the construction of a vacation rental property as they are not available for rental properties in general. The program specifically prohibits the use of funds for investment properties and is designed to fund only real estate that is owner-occupied, with the only exception being for businesses that offer medical services. While the SBA 7(a) program does allow for the acquisition, expansion, or construction of commercial real estate, the key is that it must be owner-occupied. For instance, at least 51% of an existing property and 60% of new construction must be owner-occupied to qualify for the loan.
For purposes like constructing a vacation rental property, which is considered an investment property, you would need to look at alternative financing options outside of the SBA 7(a) program. This could include traditional bank loans, real estate investment loans, or potentially looking into the SBA 504 loan program, which is more focused on real estate and equipment purchases for small businesses and might offer some leeway depending on the specifics of the project and how the loan is structured. However, it's important to note that SBA 504 loans also have occupancy requirements and are not typically used for rental property investments either.
Hope that helps.
KC