All Forum Posts by: Patrick Kendrick

Hey BP. 

I am looking for a lease template for outdoor lot storage yards. I have a vacant lot, fenced with gate, and I would like to begin using the space for people to store vehicles and/or boats. Access would be limited to when manager is present.

Anyone out there have an info, templates, advise on the subject?

Thanks in advance,

:)pk

Absolutely fantastic question. Thanks so much for asking it. I look forward to following along.

Welcome! :)

Hey man would love to hear more about what you have planned for your REI business. Hit me up tomorrow and we can talk about the Spokane market as well. I have plenty of contacts/resources to help out. I bring a lot of Canadian bands down for www.volume.inlander.com each year, would be hyped to talk about that too.

David Sweeney (This tag isn't working, BP mobile app is..eh) Also forgot to mention my updated 2/1's w/ laundry closer to Kendall Yards are going for $775. I can link you up with some financing options as well if needed.

David Sweeney Rents seem high. 1/1's in that area average around $525. (I have a few closer to Kendall Yards that are somewhat updated renting at $550) I would estimate $340 for W/S/G which you will pay for. The electricity you mention could be a house meter. Tenants should be paying for their power. That area is hit or miss. I have yet to check the MLS for details on what may have happened with the prior listings but I will do so soon. I would also be happy to run a few comps for you if that helps (no creepy Realtor motives just one investor helping another), but I won't be able to get to it until Monday. ..but yes requesting a rent roll (T12) and a contractor walkthrough/inspection are solid ideas for sure. Lemme know if I can help in any other way. :)pk

@A.J. McKinney Property is purchased with Hard Money. Essentially an investor with cash willing to front me the amount at high interest (and often times points paid and/or closing costs).

For sure! Although the fall back if things do not go as planned isn't so bad either, if you have the capital. For instance if you don't clear the 75% LTV on the refi and are not going to be getting the money you put into it back AND also having to bring some money to the table! (yikes)..your money is still protected and seeing a return in the RE asset. Not to mention the value adds going forward, appreciation, tax benefits, rent rate increases, and so on.

I guess my point is just gettin in and doing it can have mixed results, but either way its a positive investment. (assuming you are still cash flowing of course)

A triumph right out the gate! ..of sorts.

POS Triplex 

BUY: $105,000 Costs: $7,900 Rents: $1,100 mo Financing: Hard Money 12% interest only for 9 mo (stings)

REHAB:

Repair costs: $9500 Misc: Includes "cash for keys" to remove inherited tenants

RENT: 

$1900 Misc: Fully performing with professional management in place at 8%

REFINANCE:

Appraisal: $200,000 Great news! aaaand not so fast Field Review to: $185,000 Financing: Conventional at 4.6% Loan: 129,500.00 Mortgage: $897 per mo

After closing costs I pulled out $14,000 to put towards the next deal

Expenses monthy: $1,493 Rents: $1900

**Cash Flow: $407.00 per month with roughly $3,400 into the deal**

[Disclaimer: These are rough numbers as this is my first deal. Tracking the numbers thoroughly is absolutely essential but will obviously get better with experience]

REPEAT:

I am in the process of BRRRR'ing a comparable 4 plex in the same area as the Triplex. Similar acquisition, rents, and condition. The Triplex mentioned here appraised (initially) at 200k and the 4 plex appraised at $128,500! Pardon!? Clearly there are some issues with the appraisal process which I won't get into cause I would prefer to keep as much of my hair as possible but it is something to pay particularly close attention to. With refinancing out a Hard Money loan you are looking at a 75% Loan To Value if you want to walk away with out any down/out of pocket at the closing table.

I feel like this is something that is brought up very little on BP (at least from what I have seen/heard).

Your ARV needs to be solid, with much more room than one might expect. In order to "pull your money back out" you'll need to clear that 75% LTV significantly, depending on your situation of course.

Just a heads up from a new guy making some moves. 

See you out there!

:)pk

@Kalin Stocker