All Forum Posts by: Robert Rayford

@Lillie Hernandez, I sent you a P.M on this one.

refesh

I am looking for a Cash Buyer with a fast close. Large 4bd SFR that's ready for rehab. This property is the most architectural pleasing home in the neighborhood and would shine after rehab. No liens on this one and will be conveyed with a warranty deed and marketable Title. I have too much inventory and have to let this one go. My lost your gain. I am a direct seller no middles.

This is a great way to get into flipping, but this is not a do it yourself project.
2nd floor would make a great second unit.

@Eric Pacharis , you would want to reach out to Jason Rios. He is a great agent and well versed in the field and a asset for us absentee buyers. I tagged him in this post.

@Jason R.

@Mushfiq S. , look up Oceanpoint Management. They are a turn key company operating in Jax.

@James Ortuno, please send complete info and pics to [email protected]

For all the New Investors entering the Jacksonville market. Other than having low volume investors as your competition there are the Local and National Turn Key Companies. As stated above the Jacksonville market is plagued with tax and nuisance liens on the inventory and if you think this is only on the low end properties , it's not. These turn key companies have acquisition personnel on board or working from home calling owners and other property sources daily. They pinpoint the properties that fit into their acquisition model and send out the offers. Properties with liens, most of the time are passed on unless the ROI has a great margin. With the new Fed tax plan being finalized, I can only imagine that this type of investing will increase. Here in the Bay Area, California and Vegas I get investors asking about the Southeast market. Most wanting to park some cash in R.E using a turn key provider because it's passive/hands off.

The new investor should be vigilant in your quest for your 1st or 2nd property. Remember that the big companies have a "model" that these properties have to fit in, you must be flexible and be able to find value where others can't or won't.

@PeTika T. , What are your REI plans and business model ? Goals ?

@Andy Lu , You should always have a very clear agreement prior to the purchase. I am a strong believer that to make any partnership work it has to be equal beneficial to all parties involved. 

Each partner should receive back what they put into the property. Then the net should be divided between both partners. Rent payments covered mortgage so you would have to take in consideration any +/- moneys after monthly payments. 

If you managed the property for 10 years, normally there should be a 6% management fee per month. This would equal to around $14,400 over the duration of the partnership. It would be unfair because you are actually managing your own property that you have a 50% ownership. So you may want to minimize the percentage to 3%.

Based on your numbers. Your all in cost was $300K the resale is $360K this leaves $28,800 net after the closing cost. 

The problem with such a long term partnership without legal documents outlining the conditions, contributions and exit financials becomes a issue. Especially when it's business between friends. Over the years if one partner is doing more or feels they've put in a higher stake in the venture then stress or division can occur in the partnership. Unfortunately this develops into a right of entitlement over the other. Of course I do not know your position nor do I state that this is your scenario just some information for others whom may read this post.  

@Wayne Brooks, By no means was I speaking of you or your post I was referring Christa's post when she stated... "I run across this website that I am sharing my story now with you and I read the most horrible awful condescending judgmental comments from the members of this site about low end run down houses, and tenants that live in the property's your group purchases in some form or fashion as investment property's."

I was just giving Christa a quick run down on how tax deeds work. Since she mentioned... "The yearly taxes are, after all, about 50% of 1 months rent so no biggie. The back taxes are a bit less than 1 months pay." This can be a viable solution.