All Forum Posts by: Matt Holmer

@Rose Davis

Welcome Rose!  There are a lot of good opportunities in the Quad Cities if you are able to locate a property in a good area and buy right.  Best of luck!

I am kicking around the the idea of partnering with my brother on a buy and hold property in davenport.  The formal requirements for the property would be met and the property would likely be held by an llc.  Now, looking at Iowa code section 543B, it appears that anyone acting as a property manager for somebody else, must be a real estate broker. 

So, if I am a 50/50 owner on an LLC and want to manage my own property, does this mean broker's license?

I've been using Cozy.co for a couple months.  Payments have been deposited on the following days.  Rent is due on the 1st and I always get an e-mail saying it is being processed:

January 8, 2016

December 7, 2015

November 6, 2015

October 7, 2015

September 8, 2015

Looks like the minimum I'm seeing is 5 business days.  My mortgages comes out on the 8th, so it is not a big deal.  I like Cozy's interface, but the long payment times is troubling.  This one property has been a test run and I'm not sure I will stick with the company once this lease is up.

The property is owned by the bank (Deed transferred after Sheriff's sale), which is weird that it is listed as a FSBO on zillow. I would obviously need to pull the foreclosure documents, but from a cursory review it appears all the liens were properly discharged in the foreclosure.

Good Evening-

Please pardon my ignorance on this subject.

Today on Zillow I found a listing for a duplex in my local area.  It is listed as for sale by owner.  I searched realtor.com and every other site I can think of, and the property is not listed anywhere that I can see.

Based on a search of the property records (I am an abstracting attorney here in Iowa), it appears that the property was sold to the bank at sheriff's sale without the right of redemption back in August 2015.  According to Zillow, it was listed with a source of Keller Williams from September 2015 through November 2015.  Now, on Zillow I do not see any listed agent.

I drove by the property today and do not see any signs or other contact information at the property.

The main reason I want to see the property is that the assessor's sight and the zillow listing are off on the number of bedrooms. If the listing is correct, I am interested in making an offer. Who do I contact to see the property? Is this something that will be on the MLS that I need an agent to view? Is there a way to contact the bank (DUETSCHE) directly? The foreclosure trustee?

Again pardon my ignorance and the long post.  I appreciate any help that anyone can offer!

@Meghan McCallum

I am looking for a 12% minimum CoC return. I am typically more conservative with my estimates for vacancy, maintenance, etc. then what the turnkey operators advertise. Most of the properties that are truly turnkey do not meet that 12% minimum using my numbers. Therefore, the ground up model, with the built in equity is what makes the most sense for me.

Since I am just getting started with real estate I figure it is always better to be conservative and set too much aside at the start. Once I build up a hefty cushion, I will lower those numbers a bit and have a higher cash flow. 

@Meghan McCallum

I've purchased 1 turn key property here in Davenport.  I also have two properties that I self manage.  For me, a local turn key company that offers a complete rehab makes sense for me.  I work 60 + hours a week, so I will not be doing the rehab myself.  However, since it is local, I can be very choosey with the areas I invest in and can monitor the rehab closely.

The group I have been using offers two options.  1) Truly turnkey with tenant already in place.  2) They will wholesale an investor the property, handle the rehab and then place and tenant and manage the property.  

The benefit of the first model is there is immediate cash flow and conventional financing (20-25% down).  However, you should expect to pay retail.  With the second model, it will be 3-4 months until a tenant is placed, but you buy at a discount (all cash).  With my last property there was $10,000 in equity (just finished the refi yesterday) after the renovations.

I think there is a market for turnkey properties in this area.  However, due to the age of the  majority of homes in the area, they rehab has to be on point. 

I was wondering when @Nate Armstrong would start posting on PB!

Welcome Nate and I look forward to a good 2016 with you guys!

I haven't been in the real estate investment game very long, but so far the only reliable contractors of any short that I have found is:

- Good Prices, prompt service and insist on doing the job right (which I appreciate).

Dan Hanell Construction, Inc.

- They did some siding work and insulation work for me in the past.  Very professional and timely.  Price was as good as I found.  With the purchase of siding the did blown in insulation at a very reasonable price that was mostly covered by the MidAmerican energy rebate.

BPC Finishing

- General finishing work.  Reasonable prices and an attention to detail that I haven't found in some of the other people I have used.

@Nick Denning

Thank you Nick. Based on those rates, it appears I was not being realistic in my expectations for long term rates for an LLC.

On a $100,000 loan, the difference between 8.5% and 4.5% is $262.00/month.  While I want to do things the right way and treat this like a business, $262/month would wipe out the potential cash flow on nearly every deal I have looked at as I am very conservative with my vacancy, capex, and maintenance numbers.

Thank you for the reply.