All Forum Posts by: Sarah M.

@Paul Moore thanks!

Any recommendations on podcasts/books on buying a business with the underlying real estate?

My husband and I are looking at buying a waterfront restaurant along with the a little over 4 acres. I work in CRE in my day job. There's some excess land that I think would be great to create an out parcel to either sell or ground lease to another user which would juice the cash flow. We'd be buying both the waterfront dirt & the business.

We’re working through due diligence and would bring in an experienced management group to run the bar/restaurant. The seller is open to seller financing but still working to get our arms around a workable structure. Currently, the deal is severely overpriced and has some things that should be done to improve the property . This is great real estate with an iconic lakefront bar/restaurant. We’d look to partner with someone else who ideally had experience.

I know that’s a lot to unpack but we’d welcome:

-books/podcasts on buying businesses

-resources on bars/restaurants

-creative financing ideas

-and it would be great to speak with someone who perhaps has taken on something similar

Thanks!

Looking for self-storage podcasts & book recommendations. Thanks!

@Sandra Regnell how’d the process go for you? We’re looking at using them & would be curious about your experience. Thanks!

My husband & I are are almost finished with our personal home rehab and plan to turn it into a rental. As we're nearing the end, we've started casually looking into our next purchase. We found a set of two properties ( 3 br SFR & 4 plex) being sold together in a great area. My question is could we benefit from FHA financing since we plan to live in one of the properties or will this put us into a commercial category because technically this is 5 units across both properties? I'd love to keep the down payment to a minimum in order to have funds for rehab Would love any insight into the financing implications. Our mostly likely plan would be to live-in flip the house and retain the 4-plex long term.

Thanks!

@Brian Cheng yes that would be the best way to do it. Then, you’ll know if you’re covered on the back end when you want to convert to strictly rental.

@Brian Cheng Hey Brian! Congrats on taking the first step in your investing career. You’d want to consider what you could rent the property out for once you moved out. And, run your analysis the way you typically do for any straight rental property. You want to be sure the cash flow is positive & ensure it meets your own personal return hurdles.

Rent

-vacancy

-property expenses (property taxes, insurance, R&M, etc)

- mgmt fee (10%)

-mortgage payment

= cash flow

There are templates on bigger pockets you can use. You might also consider Eado or north side if you’re looking for a multi property. You could probably find something you could rent out the extra units to help cover or partially offset the mortgage. Good luck!

@Mak K. I’d protest with your requested value & justification. Include the closing statement & 99% of the time HCAD will accept that value. If at that point they don’t accept, you can make the decision to personally contest at the informal & formal hearing or bring in a tax consultant. If you need a consultant, we’ve had luck with O’Connor & Associates. Their payment is directly tied to lowering your assessed value so interests are aligned. Best of luck!

@Jerel Davis Richard Whitmore is a great investor friendly realtor in Houston. I’ll PM you his number. We’ve used him multiple times. He pulls comps for us on our properties even when we’re not looking to sale. He provides consultation as requested but let’s you make the decisions on offer prices & how you’d like to negotiation. Highly recommend.

@Ramy Man We use cozy for our rentals & love it! It is really easy to setup & use. It Sends tenants reminders for upcoming rent payment then sends you a notice once rent is paid & deposited into your account. I also highly recommend Stessa for monthly accounting.