All Forum Posts by: Michael Thach

 Message sent of the property with the numbers. 

Wow, Seller paying full downpay is new to me. Usually is only 3% of purchase price which can be gifted or claimed as sellers contribution. Can you share how you, the lender and the seller discussed about the downpay coming from the seller ?

But congrats regardless, it's a real present. I would take deals like this everyday.

 As you said, " Only you can answer that ". I am a businessperson and never worked one day in my life for someone else. For me real estate gives me the freedom I need. I can choose my projects and fields I want to discover. I can choose to add a long-term rental, fix a property and flip it for quick cash, buy a multifamily add value and convert to MTR to save taxes on flips, I can help family and friends and build them the same. I can share knowledge and help people around me, which is very fulfilling.

I know that real estate is a big word because it's a whole industry. There is of course the agents, the brokers, the mortgage and lending side, the title companies but also the whole construction side would be part of real estate. Then there is a difference between residential and commercial. So if you say you want to go into real estate, I am very sure you will find something that you like. 

Of course investing is a big part of real estate and most likely the scariest part. The funny thing about real estate is, that it starts very difficult and very challenging from the beginning but it get so easy over time. You seems to be on a conservative side, which is good, it means your project will be calculated and less likely to fail but being conservative means also missing out on opportunities based on being to hesitant. 

So no matter how you want to enter the real estate field, just do it. It all leads to investment and growing wealth. I see contractors, mortgage loan officers, title office workers, brokers, inspectors, appraisers and so many more most of the time investing into real estate themself. 

The importance is to make a step towards the life you want, then you are a step already closer. As long as you keep going, you will get there. At the end the beautiful thing is not the destination but the journey. If you think you can, you can... if you think you can't, you can't. 

I did it before. So you say that in your city if I buy a multi-family for a 6% Cap and I double the NOI in a T12 I have to trade it for a 18% Cap ? Which City does that ? Show me 1 real life example.

There are less drastic trade rates example from a high end multifamily with a 5% cap converted into a hotel and then trade with 8%-10% cap, but this is not what I am doing. I am not changing it into an hospitality project. 

 Yeah, that is actually true. Good questions for passive investor in syndications. Quite thought out. But still shouldn't be all positive to invest. 

Quote from @Blake Dailey:

So excited to announce to the community that as of last month, I acquired my largest deal to date which is a 130-Unit Hotel and Resort in the Smoky Mountains of Tennessee! I'll include all details below.

THE LOCATION: The hotel is conveniently located in the breathtaking Smoky Mountains, just minutes away from the Great Smoky Mountain NP entrance. And it doesn’t end in closing the deal; it's the beginning of an extraordinary transformation to come with a full renovation and redesign!

THE VISION: With 130 units and 8 buildings plus a wedding and event venue, our vision includes revamping this space into a dream hotel. Picture this: 3 pools and hot tubs, a dynamic game room, a versatile venue, pickle-ball courts, outdoor theater, mini-golf, and more. We are going to create a vibrant experience for our Guests!

THE NUMBERS: With a purchase price of $7M, my Investors and I put down $2.7M as the down payment on the property. With our vision mentioned above, we're allocating a whopping $3M into the complete renovation, re-brand and makeover of the hotel.

THE INVESTOR: For those of you who don't know me, I'm Blake Dailey and this is my 6th Boutique Hotel investment! My first purchase was back in 2021 with a small little 8-unit Boutique Hotel in Florida. Since then, I've documented the process as a Boutique Hotel investor and have a deep commitment to sharing my knowledge around Boutique Hotel Investing with others who are looking for a path to financial freedom, and Boutique Hotels is the best path to get there in my personal opinion. Let's connect!

 Wow this is very inspirational. Can you share how the deal is structured, how you got the investors on board and a more about the financials ? This is for sure an interesting journey. 

I think if you ask this 38 questions, you will never start doing real estate. Maybe I am just lucky or very naive. Of course some of the questions need to be asked... but this 38 questions is an overkill. 

People asking this 38 questions and would decline a deal because 1-2 questions are not positive. I recommend a savings account with 0.5% interest. 

If you decide to do out of state investments, be sure you got a good realtor and a better property manager. Screening of tenants is one of the most important thing. Your investment depends on that one tenant and how well the property manager screened them. In my first properties I looked over the tenants application to make sure, those are people I want. 

Even locally, I would always advice to have a property manager. Don't save on the 8-12% management fee, the trouble and the problems you create are usually bigger. If your property needs repairs and you call someone, you usually end up paying more, than using the one from your property management fee. If your property manager is seasoned, they usually have the best tradespeople to do the work. 

To make it work buy one of the tenants out if they are not month to month. We had the same issue on a multifamily which we converted into MTRs. We paid each tenant 4k to move out, so we can renovate and start doing bigger money. Just let them sign an amendment to vacate the property early. 

 Agree with everyone who said SELL. No capital gain tax on the 115k, and appreciation is not amazing in your case. You can make more with the 115k invested elsewhere than being breakeven and wait for appreciation. 115k invested into real estate flips make you around 25-30% a year. Invested into MTR will make you around 8%-10% cashflow , while benefiting from appreciation, capital improvement, depreciation and amortization. Invested into commercial multifamily projects, you can double within 3 years. No reason to keep that lazy money in that property.