All Forum Posts by: Pat Lulewicz

Definitely reach out or plan a trip when we are having the event @Ashley Jaynes! We meet at this location the 3rd Thursday of every month!

For our fourth meet-up of the reboot of Pints & Properties, we are excited to present Heath Bowers from NC Farm Bureau Insurance Group. Everywhere you look you see headlines of California or Florida insurance companies not insuring homes due to natural disasters and risk. How about back home in NC and in your investment activities? Everyone has either heard, or likely felt, the effects of rising insurance costs. What causes it? Will they keep going up? What does your policy NEED?

Join us for an informational session as Heath answers these questions, we walk through policy differences, and see if and how you can save while still insuring your investments. Bring your questions for Heath as well so we can help answer them and give you some peace of mind in this changing landscaping.

Sent you a PM.

10%-12% is the limit in our conversative underwriting case. Everything can always change in application (reno, rent amount, interest rate, ARV). We've generally been leaving 0% - 8% in the deal over the last 2 years.

To the previous point, guests will let you know if they track water into the home with their shoes...you don't think you'll get a message with each rain/snow storm? Not to mention, your utilities bill must be getting heavy if they're leaking that much external into the house. Although you might be fine putting a hoodie on and dealing with the lower temp, your guests will crank your HVAC. Not only does this blow up your utility bill but will put continued effort on your HVAC unit to need to be replaced sooner.

If you have a good product at the right price, it will sell. Inventory for good homes is still tight. From a renting perspective, STR/MTRS in cary generally have good rental fundamentals but its of course case-by-case and property-by-property.

Looking at your property, I'd say that the zillow/redfin estimate for both ARV and rent are directionally accurate. Won't have much, if any, capital gain to shelter so don't let the 2 year market be a big driver for you in your current situation.

The other factor to consider is the immediate cash need of higher points. You pay those at closing, so if you are trying to limit your cash invested, you can spread the interest out over (in this person's cash) 3 months while also having cash outlay of renovations, so you IRR is better even if all costs are equal.

Hi @Ambica Pilli- @Nate Benton and I host a monthly investor meet-up at the Brier Creek Carolina Ale House called Pints & Properties. We will post the event on here each time. Here is the link to March's meet-up later this week if you have availability to make it.

https://www.biggerpockets.com/forums/521/topics/1233568-pint...

You can distribute funds out of the business in creative ways to decrease your overall tax burden. You're effectively trying to move money within a family to the lowest tax bracket, or distribute it as (example) a dividend (taxed lower) instead of 1099/self employment income (tax highest)

BP may have deleted your attached/links, so I don't see the specific listing however overall thoughts knowing the location. 4.4 cap on self storage isn't that wild:
1) Land price and availability to accomplish the build. In general commercial land is VERY expensive around here and could cost you $900k just to find somewhere that you could build...that location could also be less advantageous to self storage demand. Could require rezoning. Dont forget infrastructure...lot clearing/grading, roads, electricity, fences/gates, security, etc. etc.

2) Is payroll the owner paying themselves or family? Easy way to move $ around for tax or other purposes. This is very common with small businesses.

3) Put yourself in the seller's shoes...you have an asset that's hot and people are willing to pay you 20 years worth of NOI RIGHT NOW. List prices are not sold prices...a lot of newer investors forget that.