All Forum Posts by: Adam Stanton

Hello all, so this deal never came about.  I just didn't have enough cash to get a lender to go in with me.  I looked for hard money but in the end the debt cost did not work in my favor for the first few years of ownership.  It would have worked in the long run but I wasn't happy with the risk.

@Stephanie P. I accepted your request.  

Hello BP friends. I'm looking for podcasts, books, articles or any other resource on how to structure private money deals. I have a buy and hold strategy that ha been working on my own so far. Friends and family have recently hinted they may be interested in lending me money, so I would like to get smart in the various ways people structure private deals. Thanks.

Thanks Upen, and everyone.  Appreciate the follow up.

I have a homepath triplex near me I'd like to purchase.  

Asking 180k

ARV (at best) is 225k

Rental revenue ~2300/mn,

Property needs new roof, one kitchen and one bathroom.  It's been vacant for awhile so needs good cleaning, some landscaping some flooring and paint in all three apartments.  Mechanicals appear good but probably need some thorough maintenance.  

I have 50k.  

There's no way they're getting 180k for that place, at least not from me they're not. I plan on offering between 100 - 115k (bank took it back at 93k). My first thought was to get a HML, make all the repairs and do a cash-out refi in six months. But I'm having a hard time finding someone who will loan on less than 12 months seasoning. Then I thought about going the portfolio route but each requires so much down that I wouldn't have much left over for repairs.

Thoughts?

I too have thought about this.  @EdwardB is correct for the Virginia requirements.  Additionally, if you want to go out on your own in Virginia, you have to be a broker.  To be a broker you have to be a full time sales agent for 36 months straight.  So yes, Virginia is a tough place to start a PM company.  

Sounds like a great marketing opportunity.  Letting potential renters know the area is predominantly owner occupied will hopefully draw a better crowd.  You'll still get the knuckleheads but they are easy to spot.  

Do you have a management company running this for you?

Appears turnkey means a few things.  @PeterK is absolutely right, if the numbers work you're good.  Like anything else, it's all about the location.  I'd be cautious with a strategy of buying high end town homes as rentals.  Check out some lower income neighborhoods around you and see what those numbers look like.  

I don't have time to buy properties in need of repair, fix them and find decent renters so I focus mainly on properties ready to go.  Also, I purchase for cash flow and never expect appreciation.  If it comes, all the better.  

You're not going to find a flipper, since it's already been flipped, so the 70% rule doesn't really apply here. Owner occupant or buy and hold investors are what you're looking for. I think there's a deal to be made here but it depends on how low your seller is willing to go. Try to determine why they need to sell so fast. That will tell you how determined they are to sell. Find out what the local rents are for that type of house and run the numbers to see if it makes sense as a rental. Consider an owner financing scenario as well. Richmond is hot these days which is why the seller may think they can get more than market value, but in my experience the bump is usually only a few thousand more than market, not 20k more. Good luck. 

Hey BP'ers

I'm looking for bank (or private) recommendations for financing on a triplex I'm looking at. Repairs are needed so conventional won't work - not interested in living in it so FHA is out too. That leaves some type of portfolio or hard money.

I'm really interested in lenders who have a seasoning requirement less than 12 months.  This will allow me to use hard money for the purchase and repairs but not spend a fortune on debt costs. I also like the idea of pulling my money back out later.

Purchase and repairs are around 200k.

Thanks

Adam 

Search BP for Brandon Hall. He's in NOVA and does my stuff. He knows what he's doing. I also use the guys at Torus Law for entity and legal stuff. Hope this helps.