All Forum Posts by: Lynne Hart

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $465,000
Cash invested: $125,000

Four Family Property bought in an exchange, was in fantastic condition with just one unit that needed to be made rent ready. Updated cosmetically, added in unit laundry and new appliances. One is a furnished corporate rental and the other three are market rate unfurnished rentals, right in the heart of St. Louis's Central West End neighborhood, walkable to various hospitals, educational institutions, and the cortex, which is an innovation incubator.

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

The location is superb and the price was perfect for the area, where there are a limited number of multifamily buildings. There was a comp that was just a little better in condition that was a $650k sale within 1 year.

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

I'm a realtor and an investor who works for realtors, and so I always have my eyes on things coming to market. A colleague listed this and I had it toured and contracted on the same day.

How did you finance this deal?

Funds from a 1031 exchange and conventional financing.

How did you add value to the deal?

Cosmetic updates, some new windows, tuckpointing, new doors and just raising the rents where they hadn't been raised in years.

What was the outcome?

CASHFLOW!!

Lessons learned? Challenges?

We had a surprise at the end when we were getting ready to re-rent and had gas leaks in all of the units. We aren't sure what the cause was but had to rerun lines that were leaking, even in use!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Tons, and I do all the time.

Thanks Ken!  

Thanks Chris..... I would still like to hear from actual sellers who have done seller financing so that I can fully review the entire opportunity and make a decision for myself.  

It is a significantly higher price, which is only 30% of the total purchase price (the seller finance portion is 30%) I anticipate the interest rate they are seeking to be 8%.   My questions are what tools are out there for me to evaluate the buyer financially, manage the loan payments (i don't want to do it) and foreclose on them if they do not pay.  (if they did not pay on that loan, I can foreclose and recover the property, correct? - even though they paid 60% cash up front?

Hi all - I have a property for sale and am about to receive a contract that will be cash OR Cash with a portion of seller financing.  I get the concepts but need information and experience from the viewpoint of the OWNER who has provided financing before.   Can someone explain to me all the steps to protect myself?  Placing a lien on the property through buyer underwriting, mortgage processing, resources for the loan processing, and thinking ahead planning for recourse should they default?  I do not know or have any history with the buyer, they are working through an agent.  As of current I am pending a written summary of the offer.   I may lean toward cash just because this is too much to try to figure out and I have a real job!!  But what can the fine people here tell me?

Quote from @Matt Quinn:

@Lynne Hart is a great resource! 

 Thanks @Matt Quinn!!! Shweta, Matt is a great lending partner if you do get started in St. Louis!  I would be happy to talk to you about how I can help and if you want a property specific buyers agreement I'm sure we can make that work.  My goal would be to be such an asset to you that you want to use me over and over again - regardless of the type of buyers agreement we use!  I am an investor and a realtor whose clients are 100% investors.   You can check out my profile here to learn more, message me here on bigger pockets or set up time on my calendar at www.calendly.com/lynnehart   

Hey there!  Is that you?  Are you lurking on BP to learn, find clients, or something else?   I'm here looking for Realtors who are also investors, or Investors who have their license to help convert leads and service clients.  That's right, I have more business than I care to handle and am looking to pay YOU to work on my team, service my clients, and the great news is you get to keep your own leads.  Some training is implied, however the ideal candidate will already be a high performing investor who will know the lay of the land and be knowledgable to service investors.   Please reach out to me on BP or check my profile and contact me otherwise.   My calendar is www.calendly.com/lynnehart 

Quote from @Matt Quinn:

If you're looking for a 2-4 unit, it might be tough to find in Affton. My advice would be to get a Realtor that has experience with investors so they can help navigate you through the process and help you find properties on the MLS and off market. @Lynne Hart is a great Realtor and resource for the St. Louis area!

Hey Matt! Thanks!  I'd be happy to help if you want to message Logan?  Or we can schedule a quick zoom and go from there www.calendly.com/lynnehart 

Quote from @Omar Ababneh:

@Lynne Hart hey i Hope all is well! Yes they have been assisting with this but if they don’t manage the properties then I need someone reputable, and reasonable with their price.

It's not easy these days, anyone like that is triple booked. My husband has a small team and does renovated apartments for myself and my clients spring through fall, so he would be available in a couple months.  The people we typically use during winter have proven themselves slow, expensive, or unreliable this last year.  The others I know are booked solid, I don't know prices but suspect the are more suited to renovating homes.  I notice this post is older. Are you still looking?

Hey Omar, I'll send you a private message.  Not sure who your property manager is but are they a possible resource?