All Forum Posts by: Shanea Fulks

I agree with putting it in a trust with you as the trustee and beneficiary. 

Quote from @Curt Smith:

Hi, You MUST keep the borrower as a named insured, in addition to you (or your LLC or preferably the Trust you created at closing) on the policy. IE there will be both borrowers if 2 plus you as named insured. AND the lender... Please please connect then PM me I'll send you my how to close a sub to correctly doc. You have many problems you have yet to hit you. Read my doc.

Best of luck to all, curt

Can I also have the information on how to properly do the insurance? OR even how you would recommend moving forward with a Sub-to on an FHA loan/Down Payment Assistance loan for the state of Utah. 

The title company said it may be better to do a "trust" rather than transfer to an LLC?

I am wondering if you found a resolution for this issue? Would love to know what you did?

Thank you so much!!!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $145,000
Cash invested: $140,000

UNIT #2

This is the furnished downstairs unit. We offer this as a Mid-Term rental for travelers and oil field workers. $2100 per month.
3 Bedroom 1 Bath. The upstairs unit is a long term rental at $2000 per month.

What made you interested in investing in this type of deal?

Mid-Term rentals are desperately needed in this area for travel workers

How did you find this deal and how did you negotiate it?

We passed by this home for over a year, it was empty and in horrific condition. It finally came on the market, WAY TOO HIGH at $275,000. We went in with our contractor who wrote up a bid. We presented our offer and the contractor bid and the seller accepted the $145,000 realizing the enormity of work needed to be completed.

How did you finance this deal?

Hard Money Loan, Refinanced with DCSR loan and appraisal coming in at $450,000

How did you add value to the deal?

The home sits on 2 parcels and we plan to survey and adjust the lines to build a duplex on the second parcel. At that time we will have 4 units on the one property.

What was the outcome?

$2000 for the top unit. $2100 furnished bottom unit.

Lessons learned? Challenges?

ALWAYS keep your contractor on their toes!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I WAS THE REAL ESTATE PROFESSIONAL. Shanea Fulks with Fathom Realty. I KNOW my numbers and market. I understand the best way to look for a great opportunity with ADD-Value.

Criminal and Eviction YES. Job history and proof of income YES. Credit yes. However I can look past medical and student loans. Im looking for Repos, evictions, etc.

We use AVAIL. It does EVERYTHING! We have 4 units and we have found the best of the best renters. Everything is done for you from screening, application, background and credit check, lease for your state, maintenance requests and rent reminders and payments. 

Yes your parents can gift you some of the down payment. If you go with an FHA loan, the requirement is 3% down payment, however many states have Down Payment Assistance programs to help first time home buyers. Find an amazing lender who can help you get the most out of your first mortgage.

And I agree with the above comments, if you can find a home where you can house hack and have renters help you pay your mortgage, that is the best option. Then after a year, move out, buy another home and rent the first home. 

Vernal Utah. Oil Fields, Railroad coming, Skin Walker Ranch and oil field workers who need housing.

I have put in a lot of time and have researched this area for almost 3 years. We own 4 other units in this area and when one goes up for rent, on average we have over 20 people who want to see it. 

One person came by TODAY and tried to give my husband $3000 cash to have him hold it for him.

If you know someone who is willing to at leasts take a look and listen to our numbers, plan and research, My lender and I would love to chat. 

Thanks

Long Story Short...

We are working with a TERRIFIC Broker/Private Money Lender who had 3 Investors ready to fund on our deal next Wednesday. Friday, the investor bringing in the largest portion decided he thinks the housing market is going tank, and he is worried about what would happen if my husband and I DIED!!!?

He pulled out of the deal. Our Broker who has been lending and investing for 20 years, loves this deal so much, she is willing to bring her own money to the table.

We extended the contract with the seller to keep the deal alive.

Essentially we need a seasoned investor who is willing to take a good hard look at our deal and would understand the true opportunity that exists.

We have the numbers, community research, market research. We consulted with a well established Mid-Term Rental guru and author who analyzed every aspect of our deal. She has written a positive review of our deal and outlined the reasons we should jump in.

I have read the entire City Council minutes for the past 2 years and the City's 10 year Revitalization plan. We know the growth expected in the community.

Future expansion includes a railroad bringing in 27k jobs to the 2 counties in this area. An already active and lucrative crude oil industry with the need for housing of the several hundred men and women placed there every month to work.

If you are an INVESTOR, and you are willing to take a call with us and our Private Money Lender, we would love the opportunity to show you what we have.

Thanks for reading.

-S. Sulks

Fathom Realty - Agent

Mountain Legacy LLC - Our property investment company.