All Forum Posts by: Dorothy Butala

@Adam Wigdorski  I think you have a couple options.  1. Go on Fiverr and have someone create the excel spreadsheet you want, making sure they have the correct chart of accounts you want to be shown on the I/E statement. 2. Buy the desktop version of Quickbooks and set up the chart of accounts in there to export the I/E statement you are looking for.  The nice thing about QB is there are other reports that break down income and expenses that you can use if you want to look at the data for analysis at another point in time.  

How many units do you manage vs your PM?  

@Tiffany Paige I looked at the report. It is kinda of basic and doesn't have a lot of inputs I use. What area is this in? How many units? Did the financing fall through because the PP did appraise? At first glance the COC seems way too low, you should be targeting at least 8% annually. Do you know what the IRR is targeted to be? Where did you get the cap rate from?

@Eduardo De La Cruz What draws you towards a fire damaged property vs a non-fired damaged property?

@Khalil Sleiman  What is the draw to a full gut, vs another property with less up front work?

@Anthony Grosso Sounds more of a information/education problem than a money problem when you speak about not being able to save enough for down payments if you don't do the BRRRR strategy. Have you considered partnering with other people to buy larger properties and syndicating them?

@Adam Wigdorski Why isn't your PM doing the income and expense statement for you?

@Adam Wigdorski Have you looked into cloud software to see what options are out there?  There are a bunch that aren't too pricey.  It seems like you want a Income and Expense statement that you can give to your tax preparer - is that correct?  What are you using to manage the 32 units in terms of leases, work orders etc?

Hey @Brandon Allenczy 

1. Your first question depends on the rules the hard money lender puts in place. Generally they won't want to be in second lien position.  If they don't have rules against you having money come in as a second lien position (i.e. a friend) then you should be able to use your friend for the down payment IF your friend is ok being in second position.  You would have to discuss the in's and outs with them to make sure they are comfortable with it. Having one unaccredited investor combined with hard money shouldn't raise any flags unless there were pretty big material changes in the regs the past year. 

2. There are plenty of websites that will generate proof of funds for you. I have used them when I wasn't connected with investors who would provide me with them. The key here is, just because you use a proof of funds from your parents, doesn't mean that is who has to ultimately fund the property. Sellers asks for POF as a pre-screen to make sure investors who can't do deals don't waste there time. I would make every effort you could to ensure you can close deals and provide a authentic proof of funds, rather than a website generated one. Just my 2 cents.

USA Here!  @Dwayne Poster  Generally you want to wait 3-6 months to send a first letter to probate leads, anything else can really sour them as they are most likely in their grieving stage for that amount of time.  Handle probate leads with gentle hands in order to avoid looking like a vulture. If you are unsure if the solicitor is obligated to provide a Letter of Interest, I suggest calling the office of the solicitor and asking them if they can or can't be a third party go between for you and the estate you are interested in.  If they can, great, ask them to explain the process of you providing information to them, and how they provide it to the lead.  If they can't, then you will have to do some leg work by going through the records once probate is opened to get ahold of the necessary information to contact the executor of the estate.  Hope this helps!

Hi @Andrew Rosenbaum. I haven't purchased out of state HOWEVER, I can answer some of your questions. To know if it is a good STR, you first need to understand the comps - I'd go on AirBnB/VRBO or the like, and look in the area that you are looking to buy and check out what is available, as well as the level of finishes and services that active STR's are providing. You can also look at their calendar and see if there are any blocked out dates, and how many over the next few months to see if the places are being booked, how often and for how long. Have an idea of what level of finishes you'd like, what your break even point would be for monthly income, and reverse engineer the numbers to see if the location you are looking into is viable.

As far as the people who will help get it up and running.  One of the best ways to find those people is from word of mouth referral from people in the area.  I'd recommend joining real estate investing related FB groups, and ask people in the group for recommendations.  For the rehab side - I could teach a week long, 40 hour class JUST on preparing rehab docs and screening contractors...so the rehab question is a bit loaded.  Basically, you are the director and script writer - they are the actors.  Actors have very little business giving you input on your movie (aka rehab).  You should have well thought out, detailed renovation specs, iron clad documents to protect you from unscrupulous contractors, and hopefully someone you know and trust that is boots on ground that can go check on the project DAILY. 

My advice, based on what I gather from your questions, is to buy a turn key or close to turn key property that would work as a STR. It is hard enough to manage a mid-or large scale renovation (hell, even a small one) when you are in town - adding the out of town factor makes it exponentially harder for people who are new in the biz.