All Forum Posts by: Robert Shoffner

Biggest hold up, not knowing what to pay for the land/purchase price. 

Construction costs are a little easier as I have a great, trusted builder, but one has to be able to sell the new house at a profit. Is there a formula you recommend for buying? Like an ARV formula, 1% rule, etc. But some sort of way of knowing if the price makes sense. I would like to build fairly inexpensive housing outside major metros ideally. I am guessing you back out expenses for lot development, that sort of thing.

ISO property manager and Realtor to help with management and sales. Property is vacant and needs some basic things fixed. Thanks in advance!

This is a newby question.

If one buys a short term mountain rental in NC mountains, close to multiple ski ranges, how many months per year, on average, would one expect to be fully leased? I know it varies by week and some months will be empty and other fully booked. I’m looking at in annual terms (I.e. expect 4 months fully leased, 5 months, etc).

Same thing for a beach house. At the beach on the water (inter coastal waterways) or right off the water, but not ocean front. Again, just looking for an idea if it’s X months per year or Y months per year, that sort of thing.

So if one goes under contract to buy a retail center (for example) and the seller agrees to carry back a 20% second position note. The bank would do 75% on the first position, so investor/buyer would bring about 5% to closing table.  How does one write up the contract to avoid having the bank be upset and make a big deal about it?  Some banks may refuse to do the loan.  Do you set up a contract to purchase the property and then another contract to obtain a loan from the seller?  Then essentially do a double close?   I'm not sure how one would do it correctly.  Any thoughts on this?

@Josh Ridpath

Thank you, that’s most helpful. I’m looking at office, retail, industrial and some MF as well. Just looking at what CoStar shows as available on the market makes sense. I wasn’t so sure about their estimate though. But active rentals for lease seems to be a good idea.

@Ralph Justiz. This is for commercial property, so I wouldn’t be using Zillow or the rents of the houses in the area.

How accurate are the rental comps using CoStar’s comps? They have an estimated range and then also a dollar amount for that market, sub market, and sometimes the property too.

I’m guessing it is a bit of an art, but how much variance is there from reality? Are they a good guide for determining the rent you’ll be able to charge? Thanks

@Benjamin Ervin. I like the finishes you used in this remodel. Even though you called it a “deal” it looks great!

@Rodrigo Carbajal. I am interested in that lenders info you mentioned in your post. Can you also share it with me, please?

@Aidan Mulligan. If you end up passing on that one let me know. I’m in Charlotte as well and would take a look at buying it if you want to wholesale/assign it.