All Forum Posts by: Lance Hulsey

How is your local market?  I am in Santa Cruz and the Monterey Bay / Silicon Valley area and the market is still a seller's market with little inventory compared to past statistics.  So crazy. We have investors wondering which other markets are hot?  What say you?

@Chelsea Thibeau our office has an agent who does short term vacation rentals management. It is called bnbsitter santa cruz. Dm me for more info.

We have all heard the first rule of investing to never fall in love with an asset. I am curious about what that means for my fellow investors. When you enter into a deal do you already have an exit strategy? Do you stick with your pre-determined exit strategy? What do you use to determine that strategy? How does the BRRRR rule fit into this strategy? What are the trigger points. Throwing this out there for discussion. I am doing some research on exit strategies for property investments. Everyone talks about buying smart, but what about selling smart? I would love your input.

@Russell Brazil - Smart move. I agree and it is in my budget as well for 2021.

We can all learn from each other, what is the one thing you would do differently this year that will help you achieve your goals or make your business better. Or, what did you do differently in the past that made a big impact?  Was it a book you read? A habit you changed? 

Santa Cruz CA area, maybe a fixer duplex or a poorly managed duplex with upside potential. We have very high rents in our area. 

@Joe Villeneuve - I agree with Joe. If the properties were stock, would you ride the stock market down or sell and and preserve capital for a better deal. Sell! Your losses may have tax benefits. Talk to your CPA.

@Mike Menard

And with those numbers should be #1 😂

Here is something that I would warn investors about but not a big mistake, just a hurdle.  Talk to the escrow officer about the preliminary title report for a property you are interested in.  Often times the preliminary title report does NOT show IRS liens or mechanical lines or garnishments on the initial title report. Here is a real-world example.  We took over a property and looked at the title report ahead of time. When it came time to do the final closing statement, an IRS lien showed up. Thankfully it was not a significant amount, but it did slow the closing down as we got a payoff from the government and paperwork needed to clear the lien. Thankfully it was a relatively smooth process.  The title rep said to have them do a separate search for liens that may not be on prelim. Not sure why they don't show up initially so heads up BP.  Oh, and if anyone knows a shortcut to find these liens I would love to know.

Investment Info:

Single-family residence note investment investment in Gloucester.

Purchase price: $560,000
Cash invested: $160,000

So we did not purchase the house but took over paying the bank note that was in arrears. The amount I posted as sale price was what was remaining owed on note. Our team saved this house that was in pre-foreclosure. Fixed it up and now pending sale. Saving the owner their equity from losing all in a bank foreclosure and saving their credit as well.

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

This was someone we knew who needed our help saving an investment property that got away from them. We were able to come in and save the house from foreclosure. We cleaned the property up, worked with the city to get it all legal and put it on the market for sale. We are now pending.

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

Through one of our agents at our Brokerage.

How did you finance this deal?

Cash.

How did you add value to the deal?

We have a specific model to save houses with strict underwriting criteria. If the deal does not make sense, we move on to ones that do.

What was the outcome?

We saved the owners from losing the house and save their credit too. The house is pending sale and we will be reimbursed for our expenses and cash outlay and will be paid interest and fees for the service at closing.

Lessons learned? Challenges?

Covid19 really had an impact on our timing since most local government offices were closed. We had to wait months to get resolutions on issues to bring the house up to code for sale. Thankfully the local government agencies were helpful when they could get back to work.