All Forum Posts by: Kody Smith

Quote from @Gregory Schwartz:

Quote from @Kody Smith:

without getting too deep into my finances, what my strategy is...

1. take loans to buy properties (leverage)

2. fix/flip for day to day cash flow income

3. use some of the fix/flip income to buy consistent cash flow through:

- business acquisition, 

- commercial properties (MF and store fronts),

I have no intention of doing ALL of the management myself, I will hire management as needed (medium term goal)

my expected core role is money provider, evaluating the numbers, making decisions, and connecting with investors, wholesalers, lenders, contractors, and property owners.

while I am just on step 2 of the journey, I am looking toward step 3 to stabilize, and not worry about if house prices drop mid project or not (or not worry as much)

 So to be fair this is more about obtaining and growing a real estate business not simply buying rentals for cashflow. Very different advice if you were looking to make $20k a month while spending your days on the golf course or lake. 

 i am not looking to be spending my days on the lake, I am looking to replace my day job income, and growing my portfolio.... but it is important to cover my costs first, which not 20k/mo but, that is what i'm accustomed to regularly (or more). 

without getting too deep into my finances, what my strategy is...

1. take loans to buy properties (leverage)

2. fix/flip for day to day cash flow income

3. use some of the fix/flip income to buy consistent cash flow through:

- business acquisition, 

- commercial properties (MF and store fronts),

I have no intention of doing ALL of the management myself, I will hire management as needed (medium term goal)

my expected core role is money provider, evaluating the numbers, making decisions, and connecting with investors, wholesalers, lenders, contractors, and property owners.

while I am just on step 2 of the journey, I am looking toward step 3 to stabilize, and not worry about if house prices drop mid project or not (or not worry as much)

Quote from @Todd Anderson:

Kody,

I work with investors all the time from California, they have found the same thing.  When I talk with them we talk about Florida and North Carolina.  They agree that these markets are worth looking at.  I moved to Florida over a year ago and have found the growth opportunities great here.  

I also am working with an investor who is about to close on a unit just outside of Charlotte. 

let me know if you would like to connect and have a chat about the areas.

 I have definitely been looking at Florida as well.  I sent you a connection request, we should see what deals we can put together.

What area of Florida do you recommend most highly?

I was looking at Melborne for something Air BnB (a year ago) 

I am keeping my eye on Tampa right now for potential commercial properties.... 

Miami seems very interesting, but maybe too competitive... what do you think?

Quote from @Pat Lulewicz:

How much SHF RE do you currently have? What's your equity position? How much does the current portfolio generate? Do you have additional capital to add?

Lastly - why?

There's definitely a lot of merit to transition over especially when you're at the size/scale you currently appear to be. However some of the "easy parts" of residential change like financing and the term of the note. NC is a great market for your goals, however it will be challenging to find inventory that has much cash flow; many people who toss money into multifamily here do it to avoid the tax bill + take the 10 year runway of growth.

How much SHF RE do you currently have? 4 houses: value $6.5M

Equity: $2.8M

positive cash flow after debt, maintenance, taxes: $2000/mo

do I have additional capital to add? I have a cash budget of about $1.8M, expecting to put 30-40% down on deals.  I am also building a group of investors to syndicate with, so more cash available soon as well.

why? diversification and cash flow

San Jose, CA has been very appreciation heavy... and i'm not opposed to keeping some property here, though the multi-family / commercial real estate has very low cap rates, and low growth from what i'm seeing. Population growth is low, so the long term outlook is unclear.

I am New-ish to Bigger Pockets, and would love to connect with the community here.

The idea: move from single family homes into commercial real estate... specifically multi family.

The Goal: generate $20k/mo in cash flow

I'm currently in silicon valley (san jose)... would love to find something profitable here, but it looks like there are better opportunities elsewhere.

I am open to investing in markets across the US. Particularly I was looking at North Carolina, Georgia, and Florida... 

- what markets would you enter today?

- should i connect with a broker to find deals?

Hello Everyone,

I have been investing in real estate for four years so far. I absolutely love it.  I am wanting to get my first 10-20 unit Apartment building deal.  

I've read many books, and have some small multi family property now.  

Questions in my mind:

1. Where to find loans coming up for expiration (find deals based on their loan maturity)

2. Should I bother buying locally in San Jose area, or should I go to other markets... like North Carolina?

3. what are the best tools for finding properties? (especially seller finance option)

Any and all help is appreciated.

Hey everyone,

I have recently read Pace Morby's book about creative finance, and am super stoked!  

I could use some help, and likewise would love to bring business to those in the community here.

1. I could really use some help finding escrow officers familiar with subject-to deals
2. any advice you would give to someone starting out in creative finance is very welcome.

Question to the group: 

How often do you close subject-to deals? 

Quote from @Ca Huynh:

hi everyone, ! I am new to this group/forum, thanks for having me. I am looking to seller finance my rental home to a married couple, however i we are looking for reputable law firms/ attorneys in the bay area who have experience in Seller Financing transaction. Also, TITLE companies that are experience in these type of transactions. I am entirely new to all this , watched a few videos about it with Pace Morby and Matt Theriault. 

Any help would be greatly appreciated and grateful to be part of this community!

 i see this has been stale for 2 months. did you ever find anyone and close the deal?

Quote from @Joe S.:

Quote from @Bob Stevens:

Quote from @Kody Smith:

Quote from @Bob Stevens:

why would you buy a prop for 2.2 mill that maybe will sell for 2.5?

i may have misspoke. the seller wants 2.2M but that is not what i offered him or agreed to.

i think for this area 1.925M to 2.025 is the range.

i am using 85% instead of 70% rule in this calculation.

I thought I had guts, I would never pay 1.9 mill for a prop I HOPE to sell for 2.4, 

PLEASE keep us in the loop, would love to know how it ends up

Good luck 

What Bob said… ^^^^
Also why are you using 85%?? 

i am using 85% because of how competitive things are here in san jose ca. i tried to use 70% on several deals, but other flippers pay way more.

example, i bid on a home that was what i thought an ARV of 2M... i offered 1.4M, someone bought it for 1.65M.  it sold for 2.2M.

the property was a huge project also... leaking roof, mold, plumbing, lots of termites, 1970s everything.  the repair cost i estimated to be $200k... so i did not go for it past 1.4.  the home ended up selling for 2.2M

to be clear on my journey here. 

i am new to wholesale. this was my first cold call to a seller. the ARV is 2.5 to 2.6.

i have some rental properties that i cash flow on currently.

in my recent history of buying properties to flip, i keep getting outbid on off market deals.  

everyones input here is helpful, and thank you all for your contribution. 

i did find a buyer at 1.9M, but the seller is stalling. i do not think this deal will happen.