All Forum Posts by: Kurt Brauner

Love this!!! Looks great Neil!

I would follow exactly what the leases states. If the tenant breaches the lease, I would file a notice to cure and if they do not cure I would evict.

Sounds like a great time to write a policy for tenant holds... Our company policy is to do a 14 day hold with a non refundable $500 fee that will be applied to the security deposit. If they fail to perform the deposit is forfeit. 

For my personal rentals I do not allow holds on properties.

Being that this will be your 1st time using a HML, I would make sure that you understand the fees that are involved with closing the loan. I recently helped a newer investor underwrite a deal and she failed to adjust her numbers. She had based her numbers on paying cash but was unable to access her funds to close the loan. An 8k mistake.

On developing an ARV, I would recommend locating a highly active/experienced agent in the area of the flip and get some market conditions and comps. In my market, a flip that I recently purchased had an ARV of 320k (4 closed model matches in May/June at 320k) just 2 months ago. We are currently listed at 299k, and have 0 offers. It is important up to date market data and know how your market is trending.

I have been in this predicament a time or two. I would start by making contact with the tenant (Mail/Email depending on the facility), most tenants will want to be able to have someone retrieve their belongings. I would offer to terminate the lease if the property is vacant by a certain time and free of damage and return the deposit accordingly, basically cash for keys. 

If you are unsuccessful, follow your state law for evictions for non-payment or abandonment once that time comes. Being that you are in WI, I would recommend hiring an eviction attorney.  

In Vegas, we are averaging about $27-30 a foot for a cosmetic rehab including RTA kitchen and vanities. 

I'm assuming you are looking for traditional financing.  I have used Select Commercial Funding and One Nevada CU with great success. Also, Western Alliance Banc aka Bank of Nevada,  was amazing but they are hit and miss with Multi but worth a call. 

I am extremely familiar with Progress on many levels. I have brokered deals as listing agent, represented them as a buyers agent (some years back) and also currently rent from them.

On the listing broker side they are obviously all cash deals with a quick close. But they will also work on the sellers timeline. They also have no issue with coming in above market value. In my experience they have. Ever asked for a repairs credit or any other concessions. 

Their model is simple, purchase property in desirable areas with minimal cap ex (newer properties), clean, paint, flooring and rent. 

In Q2 2021, hedge funds purchased over 2700+ properties on and off market. Most will become rentals. Progress, purchased approx 385 properties but it is hard to tell as the hedge fund buy under different LLC names. I regularly track these numbers and this has been about average for them Q over Q.

I also currently rent from them as I sold my primary residence with a 7 day close in March.  I under estimated the fact that I was going to be able to find a rental or replacement home that allowed pit bulls. They openly don’t have breed restrictions  and they allow you to buy out you lease with 1 month rent. The home is an average home In Centennial Hills that I would have rented for about $1750. I am paying $1895. When I submitted my application I sent one bank statement that had more then the years rent but no other paperwork to secure the lease, although I’m sure my credit more then was sufficient. From what I was told they will rent to anyone that can provide job/income verification and marginal credit.

As far as rental price increase this is a supply issue with eviction moratoriums and uncertain economic outlook most of my investors are fleeing this market. Cash out and move to steady growth markets with less appreciation swings with more certainty and better job outlook if we have another shutdown.

I see continued hedge/pension fund influx into our SFR market to hedge possible inflation. But time will tell….

@Thaisa Simoes Monteiro We meet the 2nd Sunday of the month at the Panera Bread on Blue Diamond at 9AM. The most up to date info can be found on the FaceBook group as @Elliot Cole said. 

We have a long standing meet up that is called Real Estate Church. We meet either the 1st or 2nd, depending on holidays, Sunday of every month. The location is at Panera Bread on Blue Diamond and I15. The start time is 9am. Our next meetup is this Sunday. It is an awesome group with no sales pitches, just investors networking and discussing real estate. Feel free to reach out to me or @Spencer Cornelia can give you info if I missed anything.