All Forum Posts by: Philip Bashaw

@Todd Dexheimer

Thanks Todd!

I will need to work up to larger deals with this investor since we are still in the trust building stage. He also wants to see how we work on our first few deals. However, I do have an off market 24 unit apartment building for 900K I am going to present to him. It is 90% occupied and generating cash flow, but it does need to be upgraded.

He wants to build a very large rental portfolio in a certain part of Atlanta for the moment. Personally, I am looking to invest in apartments  for long term buy n holds, but only in Atlanta as well. I have my eye on a few right now

@Karen Margrave

Hi Karen,

No crow, but maybe a nice filet mignon from my favorite steak restaurant!  We have our in field meeting tomorrow and I am expecting a buying decision to be made. I will be sure to keep this post alive

@Michael Plante

Good point! I will update as things happen like they are now. We are very close to doing our first batch of deals with this investor

@Todd Dexheimer

Hey Todd, 

Thanks for the input. Trust is very important to this investor. He is also very busy with a start up business and will be a silent partner with us. He wants to build a very large rental portfolio in a specific area of Atlanta. There may be some apartment deals and small commercial deals built in to our investing model for him. We are narrowing down his criteria as we speak.  Also, I haven't done a syndication deal but it sounds very interesting and I think a 70/30 split sounds good on a large project. I have studied apartment deals quite a bit so I am ready to take a smaller project. However, I have noticed that owners are wanting crazy prices for properties that need a lot of work and haven't been updated

@Jay Hinrichs

Thanks Jay! That's what we are doing. Starting small and  build on that trust and think long term

Hey Guys! 

I am trying to save time and respond to everyone at once because I have gotten extremely busy all of a sudden! My apologies...I may need to answer each individually over the next several days.

It took a while to get our first meeting with our investor, but we have had a lunch meeting where we talked about trust, team building and what he wants to do. A second meeting was a conference call where we presented 5 deals with BiggerPockets analysis attached to his email. Now we are moving forward with a field meeting this Monday to narrow down his criteria and get started on building the massive rental portfolio he wants in and around the Atlanta Beltline.

This investor thought trust was very important too. We found out that he was a silent partner in several commercial deals in another city, but is new to residential investing. It looks like things are moving forward and we are gearing up to deliver want he wants. He is also open to lending and/or partnering on fix n flip deals and "value add" deals like apartments and strip centers...

Thanks again and I will try to get back to everybody individually.

@Stephen Flynt @John C. @Tanya F. @Ray Johnson @Will Barnard @Karen Margrave @Jay Hinrichs @Jennifer Preddy Egbert @Tal Tamir @Brian Wheeler @James Canoy @Megan T. @Andrew Johnson @Duke Marquiss @Brenda Faye Wise @Brad Ott @Account Closed

@Mykael Williamson

Thanks for the solid advice. To date, my partner and I have had an initial lunch meeting and a conference call where we emailed him several deal analyses. I used the BiggerPockets rental analysis forms. He was impressed but said it was information overload which is good! He is going to review everything and we are meeting Monday to do a field visit of each property and narrow down his criteria. 

The future looks bright with this investor and I think his initial purchase will be around 500K worth of real estate (purchase & rehab) on 3-4 properties. My contractor is ready to scale up and add more crews as needed. also, my partner and I are ready to scale up and we have already gotten a realtor and a wholesaler on board. More can be added as needed. The wholesaler has agreed to call me before he does any marketing once we are up and moving.

Thanks again!

Hey Guys!

Thanks again for all your comments and feedback. 

We have not met yet, but it looks like next week we are going to have our first meeting. The investor/lender has a nice house in Florida and had to stay to secure it from Hurricane Irma and then subsequently manage the clean up after it passed through. So now it looks like we are on track for the middle of next week. I am anxious, but also as prepared as I can be at this point in time.

In Atlanta, we have an very ambitious project underway called The Beltline Project. It's a huge multi-billion dollar undertaking that is projected to be finished by 2030. Here's a link if you are curious  beltline.org  I know local Atlanta investors have heard about it and some are actively investing in and around the beltline right now. Our money guy is very interested in buying property in active areas as well as future expansion areas. Therefore, I know we will be moving forward with something in this regard. How big and how fast is up to him (and up to us). I have several residential agents and 2 commercial agents ready to get to work to find properties. I also have 2 GC's ready to get to work on small projects and bigger projects (and can add more as needed) I am not going to fire hose this guy with all this information, but I am prepared to intelligently answer his questions. If I don't have an immediate answer, I can find out what I need to know very quickly. I'm not the brightest bulb on the tree, but I do know who to call and/or network with to get the answers and the help I would need. I don't do lazy! 

In the meantime, I am wrapping up a rental rehab project and reverse wholesaling a small deal that will put about 4k in my pocket. It's not a huge deal, but hey, it's cash! I am also about to purchase a small flip deal with a guy that's putting up all the money and we are going to split a 25-28k profit 50/50. Again, it's nothing major. My point is that if nothing comes of our meeting I will be ok...I won't starve. I will move on and keep working on my business and be even more prepared for the next opportunity. 

Again, thank you for you comments and feedback, even those of you that were less than kind. I hope you can move on with your lives and not worry about me and what I'm doing.  As before, I will answer each of you individually and just ignore the negative people. Who needs them?

Phil

I am anxiously waiting for Irma to hit Atlanta, if she does, but your question is interesting. 

I bought one probate property from the son of the deceased. He was thinking about flipping it himself even though he lived in another state. The house was livable even though it needed lots of repairs and he realized it was going to be a really big project, so he sold it to me. 

Real estate is a people business so I would suggest going in slow and seeing if they really want to sell. Maybe they live close by and just get the mail there. Maybe they always lived there. Maybe they moved in because it's an awesome house and dad left it to them. Dad may have been in a nursing home or hospital. Who knows?

In probate/inheritance deals, part of your marketing budget is reconnaissance and investigation. Drive by and see what's going on or hire a PI to make a quick assessment. I am working a deal now where the seller is elusive and his nephew is very cocky. They want too much so I am offering what it's worth right now. This property is almost ready to rent, so I may go a little higher. 

My advice to you is this. Just know your walk away number and don't pay too much (based on your analysis and comps).

Phil