All Forum Posts by: Paris Williford

Hi @Bryan Darge, and thank you! I agree. Sounds too good to be true... with so many investors and such a small allowable contribution I imagine the "profit" would be peanuts. Also, your point about the lack of traditional funding makes total sense. I just wanted to be sure I wasn't missing an opportunity to get started. 

@Jay Hinrichs the developer did not clearly identify what section they use... I suppose that's a red flag!

@Bjorn Ahlblad thanks for your input.

I've seen several homes in my area listed as HomePath properties, but I was under the impression that this program ended in 2014. After some research, I see that Fannie Mae does still operate the foreclosure database, but I am unsure if they are still making loans with the rehab costs rolled in. Any info would be helpful! 

Hi All,

I'm a super newbie, and I've come across an opportunity to invest a small chunk of change in a development. This seems to be a form of syndication but I want to be sure it's legit and potentially profitable before investing anything. Any feedback would be appreciated.

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The developer is raising up to $1,070,000, which is the maximum raise allowed by SEC regulations. $700k will be allocated toward the acquisition of the rental portfolio. The remaining funds will be utilized as repair reserves ($25k) + cost of design and improvements to the commercial property ($345k).

The company is offering shareholders a 40% profit share in this project. Shareholders will collectively split 40% of profits after expenses, including taxes, insurance, management fees, repairs, and third party services such as accounting.

The developer is selling 21,280 shares at $50 per share. The minimum investment is 5 shares ($250). The company will retain ownership of 31,920 shares. Dividends will be paid bi-annually to all shareholders. 7 Year Project Valuation $2.9M

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PROPERTY & INCOME

There are six(6) - 2 bed /1 bath homes and twelve(12) - 1 bed 1 bath homes. Most tenants have been here for a decade or more. There are also two commercial buildings on the property with one existing tenant. The developer plans to upgrade the commercial property to attract additional tenants. Rents range from $550 - $800 per month on the residential side. The one occupied commercial tenant pays $1300 per month. Total revenues are $13k per month as is.

The current rental income is $13k per month ($156k annually). The developer projects that the rents will increase to $15k per month ($180k annually) after reno. The goal over the next two years is to increase total revenue to $20k per month with the addition of a new commercial building ($240k annually).

EXPENSES

Taxes - $1,145 per month

Common Area Maintenance - $475 per month

Insurance - $850 per month

Management Fees - $2500 per month

Utilities - $50 per month

Average Repairs - $850 per month

TOTAL AVERAGE MONTHLY EXPENSES - $5870 per month

The portfolio is located in a gentrifying area and the developer has already had some success with new construction townhomes in the area. I think this could be a great way to get my feet wet and agin a better understanding of syndication without too much exposure if it's legit.

Thanks for reading this post! Any feedback would be super helpful.

Thanks for the advice @Andrew B. and @Tim Johnson!

@Chris Mason that was the chuckle I needed this morning lol, thanks!

I’ve been doing some reading on “Gift Funds” as part of a down payment but it seems that only immediate family members are allowable sources. My partner and I are unmarried and I plan to apply for the mortgage on my own, but would like to use his funds as part of the down payment.

Any thoughts on this?

@Jered Noland

Yes, when you first obtain your license you will be considered a “provisional broker” and must work under a Broker in Charge until you complete post-licensing.

(This is the case in my state - NC, laws may vary elsewhere)

@Jerry Padilla thank you so much for the information. Very helpful!

@Zachary Wilder

I’m a newbie, but have worked in the apartment property management industry for several years. What we have done with renovated /rehab units is apply a premium for the renovation package. So your standard unit rents for $450, and renovated units for $700 until you get all units completed. Then you can raise rents across the board at each lease renewal.

As far as mixing the clientele, you won’t have much control over that if you have a standardized screening process; however, I believe you could designate as a student only property if you do not renew the existing leases.

Hope this helps!

Greetings everyone! I’m brand new to BP and real estate investment, but so excited to get started.

After consuming every piece of info I can get my hands on, I think I've got my strategy figured out. I'd like to house hack a 2 - 4 unit property in need of rehab with an FHA 203(k) loan.

I have two questions:

1. I’ve heard before that the contractor used with a 203(k) loan cannot be affiliated with the purchaser. Is there any truth to this? My dad is a GC, so I really have never thought of working with another contractor on my first deal.

2. How realistic is it to plan to BRRRR out of the property after 1 to 2 years? I assume it would depend on what the property appraises for after rehab just wondering if folks have had positive experiences with this method.

Hey y’all! I’m brand new to BP and this is my first forum post. After looking at the responses, my expectations may be too low but I’d like to cash flow a minimum $5k a month to leave my W2 job.

Vehicle: Rental Income

I am looking to house hack my first small multi-family property next year and begin BRRRRing to accumulate rental properties.