All Forum Posts by: Monty McLamb

Hey everyone. I am looking for advice on lenders. My local banks and the one that has my current mortgages do not want to offer 30 year fixed loans since my properties are in my LLC and titled in the name of the LLC. I just purchased my 4th and need to try something different. I do not want to miss out on these low rates so I really want to lock something in. 3 are on 5 year arms and 1 is paid for. Advice and recommendations please.

I currently have 4 properties in and around Raleigh NC.  A great area if you got in a few years ago but prices have skyrocketed in the last 18 months.  Rental properties in ready-to-rent condition, or even with minor rehab work, can't even cover financing costs much less maintenance and management expenses. Investors are going primarily for appreciation.  As a new investor, I don't have the capital to cover those losses while waiting for the appreciation.  For that reason I want to start expanding my investments to other areas of NC or even out of state.  What are your best sources for finding the best areas for price to rent ratio and still good appreciation opportunities.  Where is a good place to research local demographic data for target locations, such as income growth, job growth, population growth, median rents and median income, as well as other important info? If there are other factors I need to consider, please share those also.

I am currently working on refinancing 3 of my properties to get cash out (60k to 80k) for buying/investing in new properties.  The loan officer is with my local branch and has always been very helpful and offered me the best rates.  I told him I am looking to scale my rental portfolio and turn this into a business.  He likes the idea but has asked for a business plan to support my goals.  He said it would go along way with the underwriters if I can show my experience and the cash flow my investments can create.  Problem is, I've never done one.  Is there anyone that offer advice on creating a business plan for a property investment company?  What numbers should I be sure to include and how best to  show my calculations and assumptions?  Thanks in advance.

I didn't catch that the properties were $1.5 million so any advice I may have had would not be helpful.  I do agree that in this case, the trust is definitely the way to go.

Thank you so much for the insight. That's about what I was doing but it's my first deal using NOI so I wanted reassurance. They are definitely pricing the land value rather than the income. There is one completed 96 lot subdivision 1/4 mile away and 72 acres for sale that adjoins this property. I just want control of this parcel since it is directly across from my home that sits on 15 acres. Like someone told me yesterday, it's worth more to me than anyone else. Thanks again for your help. Now I've got to convince the bank (or my sister) it's a great deal.

I’m a beginning investor with 2 properties (1 duplex and 1 end unit of a triplex.) I own 2 rural acres on which my personal residence sits. Directly across the road from my property is an 8 unit mobile home park that has just gone up for sale. Only the lots are rented as residents own their own homes. Lot rent is $200 per month. There is only 6 homes currently which leaves room for 2 more. These lots are on a shared septic system and well. Owners are mid 60’s and I’m guessing they are looking to retire and cash in during a seller’s market. I just looked tonight and see that the 4.5 acres this park sits on is land locked. No direct access to the hwy, I’m not even certain what here is an easement. How would any of you pros begin estimating a value for this property? What approach should I use to express my interest in this. It is listed with a local agent but there are no signs on the property noting the sale. Side note: my sister owns the property adjoining this park and the highway. Asking price is $285,000

If the square footage discrepancy can be validated this constitutes either a willful or negligent misrepresentation of material fact.  This is legal grounds to cancel the contract.  (Tax records are not support for the actual square footage, a licensed appraiser is.) There should be a due diligence period in the contract and these are the types of things you want to find. I would definitely go back to the seller and let them know you want to either revise or cancel your offer based on this finding.

I bet this has been asked before so please excuse the repeat. I have become addicted to the BP website forums, bookstore, calculators. I am now getting into the podcasts and was hoping I could get some recommendations on some that would benefit a relative beginner. I have 3 units but am looking to move from a full-time corporate job to a full-time real estate agent/investor. I prefer buy and hold over flipping or wholesaling. I don't mind rehabs so BRRRR is what I'm leaning toward. I just completed my MBA at East Carolina University and really like the idea of building a team/business focused on processes that are scalable and where I can build a legacy for my family and kids. Thanks in advance for any ideas and connections in or around the Wake and Johnston County, NC areas.

@Monty McLamb

i just realized you put 800SF in your original post. That is small and most likely a very basic box with a straight A roof. That could be done around 80 but please talk to a builder active in that market first.

Unfortunately the best answer someone can give you to this question is, it depends.  I live and work about 30 minutes from Fayetteville, and sell building materials to all the dealers in that area.  Costs have gone through the roof and contractors are naming their price for labor because the market is so tight here.  Custom homes are running about 130 to 150 per SF and selling for 145 to 170 depending on location.  An average home can cost from 110 to 125 depending on finishes and location.  Starter homes are also high simply because of labor and materials and can start around 95 to 100 and sell for 120 to 135.  These are very rough costs and can change considerably due to materials and methods.  You are correct in assuming everyone is busy.  Finding subs is next to impossible right now and schedules for so many contractors are wrecked right now.  You just have to get inline.  I'm not trying to scare you off, just letting you know what the landscape looks like in Central NC.