All Forum Posts by: Ryan Alexander

What has prior attendance been like?

Hi BP, 

I have been agent in the metro Atlanta area for nearly 3 years now and I am really looking to scale my investing. 

What are your thoughts on having a partnership in which one party (agent/me) finds deals and contributes entire commission to the deal and the other party (potential partner) provides remaining funds? 

I'm not looking for partners with this post, but rather just seeking guidance on this concept to see if it is even a viable option. 

Thank you,

Quote from @Derek Stevens:

@Ryan Alexander

Hi Ryan, I find myself in a similar position as you. I own 9 acres (debt free) in the Dripping Springs, Tx area. I have one yurt style cabin (smiling woods yurts) successfully up and running since January of this year. I am trying to expand with a second and third unit, and am now exploring my financing options.

It seems my options (other than private money) are a land equity loan, or a small business loan, since I have now have 6 months of revenue on the books.

Wondering which route you are pursuing, or what info you have learned since your post a month ago.

Cheers and good luck!

-Derek

I’ve found lots of great lenders who could make it happen especially if you own the land free and clear. All you would need is some liquidity, and a detailed plan for the further development! That is the route that we will be taking. 

A line of credit or a cash out refi maybe another viable option to access your existing equity. The reason we are not going that route is because there is nothing on the land yet and the raw land is not worth all that much. 

Quote from @Bolanle Ogunmakin:

@Ryan Alexander Great post and insight! Any advice on pivoting strategies? 

I would stay in the market continue analyzing deals and look more long term, because we know when markets dip all that means is discounted real estate. Also homes over 400K are getting harder and harder to sell due to buyer financing falling through so maybe look in a higher price point for homes that have been on the market longer than 14-21 days. There may not be anything wrong with it, the home may just be over priced. 

Hi BP community, 

Being a real estate agent in and around Atlanta we, like agents in most other areas, have seen a meteoric rise, some homes almost doubling in price over the past 3-4 years. As we all understand, this is not sustainable and we are starting to see this here as the average interest rate climbs to 5.75%-6%. The rising intrest rates coupled with home prices holding at all time highs (for now) have pushed many home buyers out of the market entirely. Now with a basic understanding of supply and demand we can infer that if supply stays the same and demand falls the price must fall as well. According to market stats provided by First multiple listing service, in January the months supply was at 1.1, this means that it would take 1.1 months to sell through the inventory at the time the calculation was taken. As of June we were at a 1.8 months supply. Now this metric is indicative of the current supply, but the same economic principles apply and that is that if the supply increases by 60% in 6 months the price must also fall. Now to go full circle, the truth is that the supply did not just randomly jump, the rising intrest rates have pushed buyers out of the market resulting in a surplus of inventory. 

Now that we certainly are experiencing the market shift beneath our we can do one of two things. 

1. Freak out because the world is on fire and we are all going to die.....

2. OR we can pivot our strategies by having high level conversations and taking tips from what we see in this group. 

My conclusion, I wish I had a crystal ball but I don’t and probably none of you do either. So we must rely on facts and statistics.

Quote from @Rolly Weaver:

Hello, Neighbor.

I know you can receive a loan on the land to build a property, but it is much less common, especially if you're going to yurt route, because some banks won't know how to place the loan.

I'd make a presentation and go and speak with your local bank in Hartwell, and present the banker with your plans and see what he thinks. 

Or you can save up and construct one yurt with your own money and see how it fares on the STR market.

Once you have concrete numbers, you can present that to the banker. 

 Thanks @Rolly Weaver that helps alot!

Hi BP community, 

My dad and I have always been fascinated by real-estate investing primarily STR and we currently own a 3 acre piece of land very close to lake Hartwell GA debt free. Would a small business loan be a viable option for the financing of a couple yurts, lot grading/ clearing, and some RV hookups?

If not what would you recommend?

What other advise do you have?

Hi Vincent! 

Whats your typical turn out at these events?

Quote from @Bruce Woodruff:

Keep your Real Estate. Always.

If anything wait for prices to drop (they will) and snatch up a couple more properties.....

 Recession means discounted real estate! 

My business partner and I acquired 63.3 acres across from the only marina on Lake Russell GA and the vision is develop 15-18 cabins, a wedding venue, and 30-40 RV slots. We plan to accomplish this is three phases. The first two phases will require $450k-$500k while the last phase will require $2.5M. 

Any ideas on how to raise the capital, acquire investors, or structure a proposal to potential investors would be greatly appreciated!