All Forum Posts by: Sandra McEwan

Quote from @Brandon Rush:

Hey team,

I'm looking into buying a property in ATL and using it as a Padsplit because I love the potential to make greater returns with their rent-by-the-room model.

The big hesitation for me is that they screen and place tenants, but don't manage evictions. Giving someone control over who gets into my property while maintaining responsibility of kicking people out seems a bit risky. The rep says that evictions only happen 3% of the time. That's low, but not zero!

I haven't heard from an actual owner of a Padsplit (reviews from tenants are hit or miss). So, would love to hear from this investor community!

 Hi Tiffany Vogel, I was just wondering if you need to have enough parking for everyone!  Also, Do any of your properties have a septic tank?

Quote from @Jordan Moorhead:

@Benjamin Knight I like getting professional photos of everything taken and using BoxBrownie.com to virtually stage them

 @Benjamin Knight Hey there!  What do you like about Boxbrownie?  I am thinking about using them for a rental property in Augusta, GA.  Do you feel you need to have excellent photos to start with or can they touch up photos and stage?  What is the average price?  Do you feel that staging gets people interested over other properties and then can see the vision?

Quote from @Russell Brazil:

Originally posted by @Michael Margarella:

I am considering using Box Brownie on a flip in Indianapolis.  What are your thoughts on whether potential buyers felt "disappointed" when they arrived to an un-staged property?

Even if you disclose that it is virtually staged in the notes, there may still be a a subconscious reaction. 

 On properties that take a couple weeks or more to sell, do not virtually stage, get the real deal done. On something that sells in under a week, its ok.@Russell Brazil hey Russell, what is your reasoning?  How would we know how long it will take to sell?

Quote from @Account Closed:

Quote from @Sandra McEwan:

Your comment: "Seller wants 60k (his perceived equity) in 2years, nothing down and no monthly payment."

Short term balloons are deal breakers unless you have a long history of predicting the future correctly. Look for opportunities that give you control of your future. This one is going to control you.

@Account Closed Thank you!  I appreciate your advice!  He would engage in a conversation about a partnership where I put no money down too.

Quote from @Don Konipol:

Ok, here’s my take based on IMPERFECT. information - LOL, and 45 years of real estate investing, lending, advising, brokering, and analyzing experience

1. You’re “working too hard” to put together a deal that nets $200 per month, and probably nets nothing as you’re understating repairs and maintenance, vacancy loss, and depreciation  with three tenants

2. If his equity is significantly less than $60k based on market prices, but he insists on $60k based on 2.6% mortgage, then this is only justified if you can ASSUME mortgage in your name at 2.t% rate.  The fact that he’s allowing a subject to may gAin a little extra equity, but a subject to is too risky for both parties to assign much extra equity value to it.  

3. On small real estate properties I’ve seen people make money through price appreciation, through equity build up (mortgage amortization, especially when held long term), and through purchase discount.  I’ve NEVER seen anyone, in a small real estate project, make any significant money through cash flow, unless they bought for cash.  Most markets end up priced so that cash flow just doesn’t provide anything more than the ability to net expenses, make mortgage payments, and (hopefully) keep the property in good repair and upgraded to market over the years.  

4. You may have entered negotiations TOO EARLY.  Most people are, initially unrealistic in their price and terms expectation.  AFTER the event causing their need to sell takes place, the willingness to sell for less on easier terms significantly increases.  Often better to walk away, and come back in 90 days and see if it’s still on the market.

In 1979-80 over a 15 month period of time I purchased 43 SFRs.  I made offers on over 200.  Many were purchased 6-12 months AFTER I made initial contact with the owner when the seller came back to me 6 months to a year later with a much more willingness to meet MY offer.  I can’t tell you how many sellers thought they had a unique property that couldn’t be duplicated and would fetch a premium price in the market when all they had was another tract house. 

Thank you for your insight and advice.  This helps tremendously.  I understand and it does make sense to walk away and see if the seller's motivation changes.  

Quote from @Michael Smythe:

How confident are you in your rent numbers?

What do you expect the value to be in 2 years?

If you can have positive cashflow for 2 years and then sell, pay seller off and pocket some appreciation, why wouldn't you?

Hi Michael, I feel good about the rent numbers because I have 6 units on the same street.  Average appreciation in this zipcode is 3%, but who knows where things will be in 2 years.  I may make some appreciation especially if we can agree on sub2/hybrid 40-50k in 2yr.  

yes, I would have to figure out the 60k but I think he will take less b/c he doesn't really have that much equity.  I would not refinance but would take on a partner perhaps or save the cash flow and use my own money for the rest, refi another property.  

A few things have to happen: stop paying water and for a dumpster, add w/d hookup in one unit and bring market rents up. 

expenses: 

$150 for water, $95 dumpster, $130 lawn, pest control $18

It does cash flow LTR but very little until those changes.  

I have 4 MTR/STR hybrid quadplex and a duplex LTR same street.

Thank you for sharing! This is great and so much to be learned here:)  I love how these deals just fall in our laps!  Networking and valuing all the people you work with is the key.  You overlapped some very creative pieces to this deal. 

Hello, I am looking for some insight and help with this creative deal.  I am very new to CF and have been working with this other investor who is very green on this as well.  Here goes:

My deal is a triplex with a potential Subject-To, Mirror-wrap or anything else creative I can do.

VA loan 2.6% 28 years left

341k left on loan

Current property value 400k

mortgage is $2046 / cash flow is about ~200/month with current LTR all 3 units occupied after reserves.

Owner is going overseas at the end of December and either needs to sell, do creative deal or get a property manager. He wants to get into the building space in 2 years instead of buy and hold small multifamily. In creative deal, Seller agrees, I will keep the 2.6% rate for the life of the loan.

Rents together are: 2945k/month for LTR (included 1 vacant unit that will be rented soon)

Market rents after minor reno: 3400 for LTR below market

I can mid-term rent these as well: 4800 for MTR/STR hybrid

Reno: 5-10k

Seller wants 60k (his perceived equity) in 2years, nothing down and no monthly payment.

Seller wants a chunk in 2 years b/c he wants to start a new venture. 5 years doesn't interest him and I am not thrilled with monthly payments b/c there will be much transition. He doesn't really care for monthly payments anyway for equity. One unit is vacant and need to put in W/d hook up and get tenant and then potentially furnish some units for MTR next year. I understand his equity is actually much less if he were to sell on the market.

He wants more than 20k in 2 years. I could get an equity partner at some point.  We are looking at doing this subject to but have not agreed on the price (equity piece).

Any help is appreciated and curious what your thoughts are.  Thank you!!

I should probably start a new thread here but I thought I would jump in an ask as I am following @Sean Williams question. Thank you as I am learning along the way.   My deal is a triplex with a potential Subject-To or anything else creative I can do.

VA loan 2.6% 28 years left

341k left on loan

Current property value 400k

mortgage is $2046

Owner is going overseas in end of December and either needs to sell, do creative deal or get a property manager.  He wants to get into the building space in 2 years instead of buy and hold small multifamily.  In creative deal, Seller agrees, I will keep the 2.6% rate for the life of the loan.  

Rents together are: 2945k/month for LTR

Market rents after minor reno: 3400 for LTR

Can mid-term rent these as well: 4800 for MTR/STR hybrid

Reno: 5-10k

Seller wants 60k (his perceived equity) in 2years, nothing down and no monthly payment.

Seller wants a chunk in 2 years b/c he wants to start a new venture.  5 years doesn't interest him and I am not thrilled with monthly payments b/c there will be much transition.  He doesn't really care for monthly payments anyway for equity.  One unit is vacant and need to put in W/d hook up and get tenant and then potentially furnish for MTR next year.  I understand his equity is actually much less if he were to sell on the market.

He wants more than 20k in 2 years.  I could get an equity partner at some point.  

Any help is appreciated! Thank you!!

@Nicholas L. @Caleb Christopher @Chris Seveney @Ontwon Smith

@Ontwon Smithundefined