All Forum Posts by: Matt Hubert

Hello BP Community,

I am looking for someone who is willing to have a 30 minute conversation about partnerships.  I will happily exchange a $25 Starbucks gift card to show my gratitude for your time.  After all it is PSL season, and there is no shame in that!

I have been following BP for about 5 years, and just bought my first 2 investment properties this year, so I am very green.

I have my vision for growing in the next couple years and to achieve my goals, and I want to learn partnerships to help achieve my goals.  The two specific topics I'd like to discuss on a zoom or phone call are below

How to structure a permanent partnership with someone to help grow my business

How to structure deals with private money investors   

Thanks so much!

Matt

Ty - thank you for the breakdown!  I am happy to see that my analyzing thus far has not been too far off track.

Say I move forward with the farm purchase and want to use the equity to fund BRRRRs, here are where my thoughts lie:

* Dont cash-out refinance: I don't want to increase my monthly payment and have that permanently.

* Collateral for Loans: I haven't explored this option, but my concern is keeping the asset protected if a project goes terribly wrong.

* HELOC: this is how I believe I could use the equity and protect the asset.

Is the following a correct assumption? I could use the HELOC to finance my down payment and rehab and then when I refinance my BRRRR, I could pay off the HELOC and close the loan. Then I'd repeat that process to finance my next BRRRR and so on.

What are int rates on HELOCs right now?

Say I leave my w2 in a year or two from now. Will that make it more difficult to take out a HELOC against the farm?

Thanks for the breakdown! Yea I was leaning towards Chase. I have them for personal accounts and I like them

Hey Jessica!  Great post here as I find myself in the same boat.  I have been leaning towards Chase.  I would like a bank that I can log into and access multiple checking accounts that has a great mobile platform.

What do you think of your experience with them so far?

Hello

I am looking for some help in considering the purchase of a family members property.  The property is a farm that has been in the family for about 80 years and is currently held by a family member of deteriorating health.  He took out a note several years ago and still owes on the property and does not have anyone to pass it off to.  Therefore, I am interested in buying him out, but before I do I want to understand if it helps me or hurts me in my investment journey.

I would be buying 60 acres for $260,000 and it would cost me $60,000 for the down payment and closing costs.  Current market value is between $9k-$10k per acre, so $540,000 to $600,000.

My big question is I don't fully understand if/how I can use that equity effectively to help out with other BRRRR properties. If I chose not to buy this property, I would use the $60,000 down payment to buy a couple BRRRR properties this year. The farm will not cash flow and it will cost me $400 per month for the next several years. On the other hand, BRRRRs will cash flow slightly.

I personally think that the farm purchase is more of an emotional decision for me and I am leaning towards not going forward so I can invest in BRRRRs which helps me achieve my goals more quickly.  But, if the equity is a useful tool that helps me complete BRRRRs then I would consider moving forward with the farm to keep it part of the family.

To those with more experience: What would you do?

Thank you all for the responses and feedback.

Hi

We are under contract for our first OKC BRRRR! We are working with an agent who has provided us some of his connections and is very helpful. I am hoping to find another out of state investor who would be willing to chat about ways to be successful managing the rehab and the general chaos. The nerves of the first major rehab are kicking in!!!

I help folks in that area and Jensen is important to be on the actual East side near the ocean.  Happy to discuss anything further.  

 Kevin, the east side particular Nettles Island is what I've been looking at.  I could use a little help estimating the projected income.  For example, I used AirDNA for a property and came up with $54,200 annual income, Pricelabs says $24,600, and my estimate based on the property my in laws stay at is $32,000.

The income is the hardest for me to estimate, even using enemy method.  How can I hone in on key factors like income, ADR, occupancy, etc?

Quote from @Andrew Steffens:

It is a niche market without a lot of draw short of the beach itself.  

Andrew, is there much of a STR market in Florida beach cities in the downtown areas where restaurants, bars, and shopping are?

Quote from @John Karg:

Hi Matt,

I'm relatively closeby in Palm Beach and know how nice those areas are. I would just suggest thinking about what months you would be using the property yourself and make sure they aren't the peak vacation rental months, as otherwise the property won't have a chance to pay for itself. If you can use it in the off-peak times then it could make sense however. I would also make sure to know what type of financing you will be using--the traditional choice is a second home loan, but this doesn't allow you to use future rental income to qualify. Feel free to reach out with any questions! 

John

 You said what we are thinking about peak season and paying for itself.

Any investors in the Port St Lucie, Jensen Beach, Fort Pierce area?  I have visited the area for 4 winters now for a long weekend in February to visit my in laws.  They rent a place on Nettles Island for the month of February.  I'm interested in buying a vacation rental in the area, I do not have any specific property picked out at this time.  Other than some raw land, this will be my first real estate investment.

Looking to connect with other investors who would be interested in giving tips on analyzing properties in the area and who are familiar with the market trends.

Thanks

Matt