All Forum Posts by: Pete Galyon

Quote from @Collin Hays:

Quote from @Pete Galyon:

Quote from @Collin Hays:

I've been investing in the Gatlinburg market for 20 years, and I wouldn't rate it anything but so-so right now. Yes, there are deals out there, but there are always deals out there. 

If you don't have a spectacular view or waterfront, get in line with all of the other sellers.

 I've only been selling out here for 5 years now,but I'm finding amazing properties and equity daily. Views, indoor pools, game rooms and proximity to attractions. Agree , those are all incredibly important as is good property management and the ability to price the property correctly based on your competitors rates( dynamic pricing ) . 

All of that said. I'm still finding deals, daily.  I have asked where else are people finding deals like this and unfortunately I dint have any answers yet.. we shall see.

There are a lot of interested Smokies investors on this forum. Maybe you can have a "deal of the day" thread, and you can post links to these amazing deals that you are not personally interested in.  Been a while since I've seen any amazing deals, so you have my attention for sure.

 Hey there I would absolutely love to do that.I'm not really sure where to do it on this platform. 

from what I understand you're not supposed to advertise any deals or promote yourself.

There are definitely good to great deals though. You just have to know what youre looking for and how to negotiate.  Also need the right advisors when you do buy tp make sure its ran in the best way possible

Quote from @Collin Hays:

I've been investing in the Gatlinburg market for 20 years, and I wouldn't rate it anything but so-so right now. Yes, there are deals out there, but there are always deals out there. 

If you don't have a spectacular view or waterfront, get in line with all of the other sellers.

 I've only been selling out here for 5 years now,but I'm finding amazing properties and equity daily. Views, indoor pools, game rooms and proximity to attractions. Agree , those are all incredibly important as is good property management and the ability to price the property correctly based on your competitors rates( dynamic pricing ) . 

All of that said. I'm still finding deals, daily.  I have asked where else are people finding deals like this and unfortunately I dint have any answers yet.. we shall see.

Quote from @Andrew Street:

Hey Pete - That's awesome to hear about your success over the past six months! The current market definitely has some great opportunities for strong ROI and equity growth. Finding the right market is key since every area has its own unique dynamics. It's always exciting to explore other booming markets and see what makes them stand out.

Happy to connect and chat more about this!

Hey they're sorry just seeing this. 
Yes, I would love to connect.  

Quote from @Andrew Steffens:

I am curious what strong buyers market is making huge equity gains?  A strong buyers market indicates sellers price cutting and listings being bought under value which would lead to equity losses.  A strong sellers market (like 2021-22) led to huge equity gains as sales were going above value leading to month over month gains of 3-5%+.

 Glad you asked my friend.  

Gatlinburg and Pigeon Forge are both extremely strong right now , with most people overpaying in the years that you mentioned and simply not KNOWING OR CARING  how to properly run a top notch Air BNB. 

Blue Ridge Ga is also an amazing  market that is growing extremely fast and I have invested there myself and helped about 50 others get great properties.  

So if prices are dropping how are the areas hot and a good opportunity.?? Good question that literally hundreds of market analyst have weighed in on. 

All prices eventually go up. Its fact.

The property values will go up over time and this is inevitable.  BUT....

With the rates dropping ( and they will)  

Buyer interest will increase and the markets will immediately start to level first , then increase( prices) as both buyers and sellers see the market stability and value. ANR is already on the rise and back to " normal" pre Covid and show no resson not to feel they will exceed that given time. 

I have been inundated thisnmonth with new investors and ones sitting on the fence. They are making moves before this shift happens. Saw it in 2020 and its happening all over again for different reasons

I have invested in the areas myself and plan more in 2025 to take advantage of the huge tax benifits to come. Thanks for your inquiry 

Quote from @Andrew Steffens:

I am curious what strong buyers market is making huge equity gains?  A strong buyers market indicates sellers price cutting and listings being bought under value which would lead to equity losses.  A strong sellers market (like 2021-22) led to huge equity gains as sales were going above value leading to month over month gains of 3-5%+.

Glad you asked.  Gatlinburg and Pigeon Forge as well as Blue Ridge area of N Ga. 

Like you mentioned , the prices are going down because a lot of people thought you could just buy a property and slap it on airbnb , expecting it to rent well without doing improvements , not realizing that the market would be overstaturated with " C and D " quality properties ( A+ are the properties i'm speaking of)
I'm seeing that you can buy those type properties( A+ potential) that have simply been under utilized and 
1. Purchase at a much lower than even market price or get aeller concessions
2. Add value and appeal to the property which brings equity up
3. Rent it at a much higher than current ANR and then -
4. Refinance and take that equity to buy the next place. 

Same BRRR method we use for a typical LTR, but better equity, ROI and use( gift it, use it and better tax write offs)

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $455,000
Cash invested: $100,000

This was my latest house hack. Personal residence that has a 2,000 sft office, kitchen and lounge area ( for entertaining vendors, clients and prosepects). The entire project took around 3 months with EVERY square in minus the electrical( some added) being gutted and renewed.
The office space added represents a saving of $2500 a month I was going to pay in a lease for an offsite building for my expanding team and staff.
Several room modifications took place and rooms were added as well.
Will add pictures as they are available .

What made you interested in investing in this type of deal?

The need for a home and an office under one roof. Also, got married and have a blended family.

How did you find this deal and how did you negotiate it?

MLS
525k Was original list and I got paid my RE commission

How did you finance this deal?

Conv finance using APM

How did you add value to the deal?

complete reno top to bottom

What was the outcome?

ARV 625k

Lessons learned? Challenges?

Never pay anyone.... even if you trust them. Until the job is done.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Krista Galyon
APM

Over the past 6 months, I've seen a "SIGNIFICANT" increase in ROI and REALLY BIG equity gains in the areas I serve and buy, due to the epic buyer's market we are in.

I'd like to know where the other really big markets are, because one size doesn't always fit all. I'm always looking to make new partnerships and connections. 

I'd buy an AIR BNB STR at 10% down ( second home loan )

600k Purchase Price and 20k for reno or decor changes. 

I am seeing some AMAZING deals in Gatlinburg and Pigeon Forge as well as the Blue ridge are of N Ga that are HUGE equity gains because prices are lower in this buyers market and also cash flowing much better than last year. Have one that is renting @ 87% occupancy :) Def my fave way to create passive income 

Same thing I still do 

BRRRR method

Buy a SFR - 200k < and pay 15% down using a RENO construction loan

Use the extra Funds to pay for first round of materials ( 30k or so )and Labor (20k ) 

and then request your "draws" to recoup your funds. 

Finish the project and rent the SFR ( Now Has an ARV 300-325k)

 DO A CASH OUT REFINANCE ---- > Take out 80% of equity and lower debt service if the interest rate is lower 

RENT WILL PAY FOR THE DEBT SERVICE >>> and 💰 cash flow $$

USE THE CASH OUT( 90k in this example ) to buy the NEXT PROPERTY> 

My markets support this all day long.. plus STR ... thats a great investment too especially with only 10% Down on a Second home 

Quote from @Andrew Steffens:

All of my STR's are in my local market, and this is the only way I buy. Distressed and BRRR.

Sooner than later I would like to get a mountain house about 10-12 hours north.  I am a little leery as all of my workers are here, but will play it by ear when I get more serious.

Best of luck!

Hey my friend thank you for the well wishes. Same to you down there in the sandy areas. As far as having trusted resources and vendors to help.Please let me know if you want to take a stab.At doing one up here I am loaded up with all sorts of resources.