All Forum Posts by: Robert E. Medlock II

BP community, I am looking tie-up a deal via PASA contract. At the same time I am shopping it to other investors to JV with me in the deal. What is the term or name I should put the original PASA in, even if I plan to use a different group to close the transaction and be listed as co-owners on the deed?

Preservation societies are a good place to learn. Jax has a rich history. Springfield has one called SPAR and I believe Riverside has one call RAP. Hope that helps. The thing to keep in mind is the inside of your flip has to be "modern" but the outside has to be historic. Its easy to just keep the outside the exact same (aside from painting and landscape) but just use new products. Like Hardie planks for that old plank wood look or lap siding to be specific.

Welcome to BP Craig. Unsure what exactly your post is asking. I assume you are new and need guidance. That is a very broad statement but help is here and all over this site. You should ask a specific question starting out like: what are some steps for a newbie to acquire a SF, or how do I qualify for my first duplex as a newbie. That way when you get feedback you can dialogue with other members. Good luck to you and be patient. This RE game is about consistency, stamina and longevity. 

@Michael Fink, you should def analyze this deal based on how it is currently operating. Otherwise you are doing a proforma, which is not what your CF will be based on. I take the approach to be as conservative as possible with all numbers in the P&L/ I&E statements. This way if it fits my criteria on a conservative approach, I know I can add-value and be in the gravy.

    If she is so adamant about cash AND she is liquidating by throwing in the duplex, put it under contract with the right escape clauses. Then research it to death. "If it sounds too good to be true, it probably is", always holds true. Try to understand her current position and reason for wanting to sell as well as the properties history as a buy & hold. 

     How often do the tenants change over? How many evictions have they both had? What condition is the property in? Most importantly what is happening around these properties? (I was in NO in June and there was a lot of construction going on. This lead me to believe NO was in the expansion cycle.)

   These are all questions you should seek to answer. Why? Because you will be "buying" these problems (good or bad). 

     Finally, if she is desperate, "some money ALWAYS beats no money". If you can close even with conventional financing, she will take it, TRUST me. One way to make her take this option is to offer her a "non-refundable" and/or higher deposit (like $5K). So in essence she keeps your earnest money if you can't close. On the flip side you protect the deal/non-refundable earnest money by being pre-approved for the loan. Even include this paperwork in the offer.

Good luck.

@Nick DeMarco

Hi Nick, how are you? I read your post and decided to reach out. Here's a little about me: I was born, have lived and currently invest in Jacksonville, FL. I would like to enter into the realm of MF properties very soon ( by or before end of year). Let's talk on PM to see where we could work together.

@William Fritsche

 I think Philip and Juan have both spoken truths. My experience has been to drive the area you are thinking of investing in, in addition to doing all of the things they listed above. Being from Jacksonville and investing in the same city, I can tell you that one street can be different from the next. There are "invisible" boundary lines that seperate awesome neighborhoods from mediocre. And interestingly enough that can occur WITHIN a 1 mile radius. You have to absolutely know what is going on in the "hood" you are going to farm. Especially since there is a big push to 'revitalize' older areas close to downtown and by the river. Beware of every number that you see. Some are too high some are too low. Rather use the numbers combined with area knowledge to know if the deal is good.

@Nicholas Cotroneo

Hello Nick, welcome to BP. 

@Terrence Rivers

 when you begin to execute your 2 house purchase strategy, are you looking at houses that need work or are turn-key (already rehabbed and rented)?

@Shelley Alterman

Shelly, @Terrence Rivershe mentioned later in this post that he is planning on buying more houses in low income areas over the next several years. Do you perform property management in those areas?

@Joseph M.

I was just about to post the same info looking for the same. Did this work out for you? Or do you have someone that came aboard you can recommend? I am in between PM and looking at one company but I dont want to be too hasty in choosing, as PM are the lifeblood for the passive income I am working towards. Any help would be beneficial.