All Forum Posts by: Kristina Modares

Hi @Eric Merkle I've been looking into buying a property around Seaside/30A probably in the next 6 months. I've been going to Destin for the last 20 years and know that area pretty well but am more interested in buying a property around the seaside area as a vacation home for myself but also for Airbnb. Do you have a good realtor you know out there or any tips for finding homes that may not be on the market? 

Thank you,@Scott Gilbert!

Sage Capital Bank! https://www.sagecapitalbank.com/

https://imgur.com/a/xH2VmCD?fbclid=IwAR0YNIjLZRGQCTStaNuCRmvZw30mr86AbSzT_cSwYD74nxPYQbT2wACEIOU

He spent about $25K on everything and it took him 4 months. He started in March 2019 and Opened in July. We were going to build an actual shop on my commercial property in East Austin but quickly realized it would take over a year in construction and cost at least triple that amount.

@Jordan Moorhead Idk! It was a bit tricky to get financing for such a small commercial deal but it wasn't super hard...we just had to ask around to a lot of banks. 

@JD Martin thank you so much! Yes, please stop by!

My business partners (Steph & Richelle) and I recently started a women's investment group in Austin and have had 3 meetups already and would love to grow the group! We have around 15 members so far. The meetings will be held at Open House Austin...a building that Steph and I just recently renovated in East Austin. Please let me know if interested in joining or speaking! You can apply to join us here: http://bit.ly/goforthapp

You can see the details of the reno of the building here if interested :) https://imgur.com/gallery/D15hm5h?fbclid=IwAR0ffVwiwnYjifiBNAjq8LzaxVeaBpF3O5lXAsglnZ06CRjnDINl8biDzg4

@JD Martin thank you! It should pay for itself--the trucks will pay our mortgage and the goal is to track everything and get 50 new clients from the building in a year...which would pay for everything! 

Investment Info:

Other commercial investment investment.

Purchase price: $240,000
Cash invested: $56,000

Click to see before & after pics and more details on the deal
https://imgur.com/gallery/D15hm5h?fbclid=IwAR0ffVwiwnYjifiBNAjq8LzaxVeaBpF3O5lXAsglnZ06CRjnDINl8biDzg4

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

I was looking for an office space and wanted to explore my options so that I could separate my work life and my home life. The prices for buying or renting commercial property in Austin were high, and it didn’t make financial sense for me to spend that much on something that I’d only be using a few hours a day. I was beginning to give up on finding an affordable commercial space when I stumbled upon this building.

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

It was on the MLS for over a year! We looked into the property and found it had opened permits that the seller didn't want to deal with so we used that as a negotiation tactic to knock off $59K!

How did you finance this deal?

My business partner, Steph and I were able to finance it via a small bank in Texas. We 30% down and we me, her and my dad each put in $25K. The rest of the deal/renovations were funded by Steph and I

How did you add value to the deal?

Trash clean up...there was so much trash!!
Closing open permits
Re-pave the lot
Adding parking spaces
Three 50 amp plugs for food trucks
Exterior Paint
Interior Paint
Garage Door, install. Our contractor had to bust through a cinder block wall to create the opening
Business sign
Security system
Office furniture
Awning
Deck
Fence around property
Interior/exterior lights

What was the outcome?

We now have an office, community event center and rent out our back patio to 2 food trucks!

Reno Cost: $56,000 So, that puts us at $240K (sales price) + $56K (reno cost)= $296,000. If we sold our property today, we believe we could sell it for at least $500,000.

Lessons learned? Challenges?

Steph and I formed this partnership, bought the property and tried to start a new real estate team together and hire a new employee while trying to project manage this whole project...it was a very stressful time but I'm not sure if I'd do it any other way now. I learned a LOT from some of the mistakes we made. We wanted to do it fast and I think that's what happens when you try to go too fast, you can get burned out...luckily I was able to take 2 weeks off after our launch party!

Hi BP! Me and two of my friends each want to buy property in San Antonio. We live in Austin. We are trying to figure out the best way to buy 3 properties this year because we all have other mortgages and have a mix of W2/1099 employment...probably no straightforward/cookie cutter loan options for us. We all travel to San Antonio for work and would each like a property there as a second home and for the time we aren't there, rent it out short term. But would like to buy them together and have an equal partnership with all 3 properties. What is the best way to get financing for this? Should we form an LLC and buy the 3 properties this way? Or would it be easier to each get approved on our own, buy 3 properties separately and have an agreement to show equal ownership? Our concern is we won't get approved on our own--but if we buy with an LLC, our buying options would be limited. Any advice or referrals would be much appreciated!