All Forum Posts by: Page Huyette

I'll put on my landscape architect cap for a quick reply:

Sawcut out & remove the asphalt at the bottom of the steps and in front of the deck, at least 2.5' in front of the deck if you can.

Add a piece or two of flagstone or pre-cast rectangular stepstones at the bottom of the steps. Put a large pot right in that planter area below the deck with a tall blooming plant or plant with large, strappy dramatic leaves in the pot. Make the pot as big as you can,. Add Plants around the pot, but not a hedge. You are trying to soften the line of the deck and add more of a three-dimensional effect.

Plant creeping thyme around the stepstones at the bottom of the stairs.

Add (3) oversized pots on top of the asphalt on the other corner of the steps.

Buy two brightly colored adirondack chairs at World Market. Put them on the deck.

Add a frame around the house numbers.

Make sure the lockset for the front door is updated and feels nice to the touch.

Buy a large doormat for inside and outside the door.

I think stone on this simple house is a bad idea--trying too hard for such a simple place.

Jeff S, I meant "an interest" not "in interest." To clarify, the thought was to give them security attached to their money via the LLC since I can't add the second until after closing.

Oh, to find a hard money lender for this deal....we are ready to rehab, have our costs and now I am second-guessing the conventional lender approach. Too many fees, money seasoning requirements and documentation for other party contributions.

I AM overcomplicating this I believe. I had the numbers worked out for HML and it was ready to go, now we'll have to see what happens with other options.

Thanks Dion, I appreciate your response. By seasoning I was referring to the cash injection by a private party if I go the conventional route. In other words, I structure a note between me and the private party, they deposit the funds into an account to be used for the purchase. This is where the seasoning comes in.

The seller is an elderly woman not interested in participating in any aspects of rehab or financing. I have information packets on the property out to several people, two which may offer hard money for the purchase, with about 3-4 other individuals interested in participating with about 15k in exchange for a percentage of profits.

Thanks also for the point on documenting the rehab to justify a higher sales price and appraisal if it flips quickly.

Jeff, I believe you are correct on many counts. My thinking behind the LLC formation was to provide in interest, as conventional financing won't allow a second prior to closing. Would it be reasonable to a) close on the property b) quit claim to an LLC that we control with no other partners c) add the second to the property with the friend/lender in place.

That still doesn't resolve the seasoning issue. I think the promissory note to the friend would work.

Finished our inspection and came up with some revised repair numbers, along with a 10% contingency. I've got another friend interested as well, so my current options:

1. Discuss hard money loan from a friend, int. only payments until close, then split profits 50/50. With this option, I'd like to split profits after subtracting some $$ for labor done by us. Say, $4-5k. Seem reasonable?

2. Conventional financing (will be hard since contract states private money and fast close, and seller may just go to next back-up offer, but we are pre-approved) with us putting in 1/3rd of down and repair costs plus labor, with one OR TWO private money/friend contributers for other 2/3 of cash.

Problems I'm having with #2 (and will need to clarify with attorney) is how to structure agreeement. My plan is to set up an LLC with all parties, then pay out profits upon sale. But, if back-up plan comes into play and we need to Lease option or rent, how to make this option look attractive to those looking for fast returns.

Also the seasoning required for the down, best way to handle that part.

Contract purchase price: 224k
Estimated repairs: 32k
ARV: My conservative is 320k, sold comps showing 385k +
Average DOM for this type of property and associated comps: 2-3

Money guy is a friend, other potential money people are friends as well.

We have construction/rehab experience and I'm extremely confident in my numbers and the marketability of this project. The other thought that's come up: if I do sell this quickly, say in 3 months, will that negatively affect my relationship with the conventional lender?

Back-up plans: Market as lease to own or rent for approx $1600-1800/month. Current vacancy rates are under 2%. What to do?

I have a SFR under contract that I plan to rehab and sell within 6 months. Hard money has not worked out since I don't have the fast-flip experience to justify the risk (all of my rehabs have been much longer time frames).

I have qualified for conventional, but need additional funds for the rest of the 25% down and rehab. Not my first choice, but I am working hard to make this deal move forward, as I believe it is a good one.

I have one person who has agreed to pony up 10k towards what was originally a buy and hold rental deal we were looking at, but I'd like to approach him with this deal instead, as it could offer faster, higher returns. My thinking was to offer two options to the investor:

1. Given return on money for fixed period with points paid at closing or...
2. Profit sharing after sale. Percentage relative to amount given.

I'm going in asking for more than the original 10k that was offered for a previous deal we passed on (perhaps 15-18k) , and want to structure the proposal so it looks as attractive as possible. If he sticks with just 10k, I'll also need to put together this package so I can present to some other individuals as well.

Assuming I'm able to pull this off, I would also expect to hold the property in an LLC with the investors paying the LLC upfront, and receiving their profit through the LLC.

Should I set up an LLC just for this one?

Did I mention I have a signed contract? Would have preferred to have complete financing in place beforehand, but this was a situation where the property came on market, and I knew for sure it was a great deal, so decided to jump on it and get it under contract.

This property is still sitting on the market, and I can't walk away yet. I've redefined my strategy for the units, and have asked the agent to check back in with the seller's to see where there heads are. I'm torn between the "if you're working to hard to make a deal work, its not a deal" mindset, and my persistent ability to keep working at something until everyone is happy.

I have a track record of not giving up until I get what I want, but as I get older I am also weighing this trait against the amount of time and energy expended. Another life lesson learned through real estate investing.

Since making the offer on this property, I've looked at about 20 others, everything from short sales, condos, duplexes to vacant lots. Our market is really heating up, and I don't want to miss out. Still sitting tight, but getting antsy.

Ryan Becerra I like your style. Why not make relationships a priority? If real estate is your life and passion, the people you do business with every day determine the quality of your life. Thanks for sharing your story.

This isn't a post about a deal that closed, but one that didn't.

My success was in taking the leap and making the offer with the numbers to back it up--I did it and stand behind my numbers. Unfortunately the seller didn't even counter, so I can't restructure the offer without knowing what they want need, so I'll have to put it in the inactive file and move on. Our market is hot and rising, so that's the disappointing part.

Another success to this story is that my spouse really got involved in this deal, so now fully understands what I am trying to do. He's a builder/contractor so looking at real estate from a straight investor perspective is tough, but this deal got us onto the same page. That alone is priceless.

Another bonus: I also got a private investor on board to pony up the funds for the rehab, so we can move forward knowing we have that in place, whether its this deal or another one.

I don't like disappointment, and would still like this deal to fly, but after learning so much on BP I know there will always be other deals, and I feel very confident that I can pull together numbers very quickly with confidence. That will get me where I need to go for the long haul.