All Forum Posts by: Lacey Burns

Hey ya'll, would appreciate some feedback:

I have 1031 money to invest...have name 3 properties already. The 3rd one is a duplex that with current rates will just break even (could cashflow once current leases are up and we can raise rents). The seller so far hasn't been willing to come down on pricing that would help make it cashflow right away. Since properties have been named ( and I can't look around for other ones at this point), would you recommend putting more money into property #2 (which is a new build turning into a STR, so will cashflow but not for a 8 months to a year) or pushing for this 3rd property? What creative options can anyone think of for me to bring seller (has been on market for 2 months and is now a bit high on the asking price with the cooling of the market).?!

Thanks so much!

Such great insight from all! Thanks Erica and @Mike Scaccia! Such good reminders. New to investing and want to keep growing the portfolio. We had really good return on our first project so not wanting to lose that momentum on this next one but getting in over our heads with too high of monthly costs on the properties we are buying with our 1031 money. But of course, time on our side is one of the big wins with real estate and we'll never know all the answers/variables up front. 

Appreciate it BP fam!

Hahah @Erik Estrada smiling over here...of course always variables depending on each person's situation! Feels like a Seinfeld episode, "Okay, so you don't know anything? No. Alright, good work!" ;) Anyway, appreciate your insight. This project would be a longer term play-selling is always an option, but initially the thought is to hold it as a rental. It's the beginning stages of a new development (so lots of potential upside being in at the start, but also more risk/at least more unknowns of how things will play out). 

If the goal on a hold is initially monthly cash flow, would you (or anyone else!) say not so much on the ARM-if we aren't anticipating selling it? I mean in 5-10 years we certainly could pivot to that, but it's not the thought right now.

Appreciate the feedback team-thank you!

Is it better to ask for a longer period on the initial fixed rate then? Like closer to the 10 year mark if they'd do it?

Hi there BP family, 

I heard on a recent podcast episode from the guest (David seemed to concur) not to mess around with ARM loans. Can anybody offer insight into that? Whose had any experience at all with them and was it good/bad!? This is what the bank I'm working with on a property says they do so not sure if I should steer clear or not.

Thank you!

Lacey 

@Eran G. we are about a month out with our build. 4 /3 on 2.14 acres. 

Let me know if you’re interested. 

Sorry I do not. We decided to sell our 4/3. We will finish our new build in about 3 weeks! 

Hi! 

Check out Woodland Bluffs - I purchased my lot from Scott. Great guy and love his vision for BB.

Hi BP Team! 

Construction loan help please! 

I am closing in few days, been 55 days on this construction loan, the bank just sent over the closing sheet  they're only covering 90% of the loan-this is new information! The very reason I decided to go with them back in February, the 10% down was going to be wrapped into the loan. Now, I am having to come up with 45k!

I really do not want to go with another bank and wait 45-60 days... I'm ready to pour concrete! This bank's communication has been awful with several things changing or waiting till the last minute to let me know updates. I feel they've done this and waited till now to tell me about the 45K (citing they "changed their policy in the last month") knowing that time is of the essence with cost of items skyrocketing etc so I am backed into a corner. 

Does someone know the right lingo I could use to get any leverage on this? Is it the bank or the underwriter I"d speak to (I did already have one convo with them and they say there's nothing they can do now...)? Do I let it ride bc we are this close to finalizing? Do I listen to my gut on not liking the integrity of the way they've done business...?

Advice appreciated!

Also, referrals on any banks ya'll have had success with for construction loan (if I do switch and/or for my future properties)!

Thank you,

Lace 

Melissa we just bought land in Broken Bow and starting to build. Did you ever consider this route? Awesome to see that your rental income is 4k a month. What size is your cabin? Are you self-managing?