All Forum Posts by: Sandra Hale

Agree with Brad, If the STR doesnt work out, do the numbers work as a straight rental? If not, I would pass. A lot of folks in Nashville are having to rent their STRs out right, now cause occupancy is way down and tourist aren't travelling due to COVID. Many got commercial business loans based on the projected income for STR. They paid higher prices than one would have paid to use it for rental. If the numbers do not work out, you need cash reserves to cover the note. If it is not zoned for STR, how hard is that to get passed? We cannot get any rezoned in Nashville, if it is not already zoned commercial. Hotel/motel lobbyists and residents have complained about STR and it is very difficult to get zoning to changed for non-owner occupied STR. With COVID, my clients' business has suffered greatly because STRs have missed the peak season which runs April/May thru August/Sept. due to the shutdown.

If you have a local REIA group, go there. There are plenty of hard money lenders that will close. Just ask around. They are local, they can help you determine value too. And they close.

• I grew up in Memphis and know the area pretty well.  I bought several notes there because they were so cheap, and it was a disaster.  The main reason is it is hard to find good renters who pay. And when it's vacant, in many areas theft is extremely high. I have had hot water heaters, vanities, sinks, hvacs, pipes, plumbing fixtures stolen and ripped out of the properties. One of my rehabbers there boards all properties he is working on and uses a special screw that you have to have a special screwdriver to remove screws just to slow down the theft.  As Jay said there is double taxation. Go look up how many properties are offered at the tax sales. It is unbelievable.  Yes, the prices are attractive because you can't build a home for some of the low prices, but there is a downside. There are several investor rental companies there such a Memphis Invest and a couple of others. The market does check all the boxes for buy and hold rentals.  I would caution you to be very careful what areas you purchase in. You must be very picky. 

@michaeldill. If you are talking about a flip, some newbies I know offered to do a JV (joint venture partnership) with the lender and agreed to pay the lender a high percentage of profits after the sale. Of course the lenders vet the deal carefully. For example, one person getting started payed about 50 - 60% of profits to lender partner. You may look for "money partners". They typically only pay rehab costs as you go, and check to make sure repairs are done prior to paying contractors. Good luck.

Great meeting on goal setting and accountability. Thanks To Brandon, Seth and Michael.!!! Looking forward to 2019!!!!

Way to Go Luka.  Big shout out to all my fellow nashville investors.  Thanks for sharing your story.

Hi Nitin, You can absolutely set up an LLC yourself on the state of tn web site. Here is good place to start: http://sos.tn.gov/products/business-services/busin...

What you will need to write up and get help on is the "operating agreement",  when you go to set up a bank account. They will require this. This is a very crucial document that spells out how you and your partners share in the account. Lee Phillips, an attorney in Salt Lake City UT offers a course on this that will walk you through setting it up yourself.  A CPA or attorney can do this for you, but in my experience they just check the boxes and it is not thought out.  The main thing is what if something goes wrong or there is a disagreement that cannot be resolved.  How do you get out of it, without expensive litigation?  The court will look at this document no matter what happened.  It is critical. I know this from first hand experience.  Good Luck to you.

Hi Linda. If this is really a good deal. Go to your local REIA group. You can find money partners who are willing to joint venture with you for a share of the profits. That is a great way to get started. You do all the work, they finance the deal. You may have to share the profits 50/50 or 60/40, where lender wants 60% to take a risk with you as a newbie. Check posts and BP interview by Devan McClish. He has been super successful and started out this way.

I recently attended a seminar at our local REIN this month.  It was put on by Gene Guarino.  He has training for this type of investment.  His web site is ralacademy.com.  I did not attend the 1 day additional training, but I am interested in this type of investment.  He has 3 day seminars in Phoenix, where he lives. I am currently researching at this time and looking into other companies in my area that are doing this.  It is a hybrid business model + real estate model.

I am a private investor in the company (borrower) that is purchasing the property, creating the note, then doing a wrap mortgage to sell to a homebuyer.  I am not servicing the note.  I have a lien on the property.  The original company is the one paying me late....(not the homeowner). I believe they do have a servicing company, but I am not involved in that. So my first post is a little misleading. Sorry for the confusion.  Thank you for your response.