All Forum Posts by: Shane Crockett

Even if it's a 4 unit dwelling with 4 active STRs performing well?  I know typically "commercial" units start at 5+ for lending and underwriting purposes, but even at 4 it seems there is a great deal of carryover and many FIs have loan products, rate and term sheets, and even underwriting guidelines which will value a MF 4-plex the same way they would a 5+ unit property using NOI and CAP instead of comps.  Thoughts?

I'm curious the best ways to go about finding STR investors looking for strong wholesale deals here in Washington State. I have a model and strategy which have worked very well in finding lucrative opportunities but I do not have an investor Rolodex to send memos, Pro formas, or other details to. Anyone have some feedback?

Hey boss, you every track down users of DigiShares or anyone who has used tokenization platforms to raise money for RE?  I’d love to learn more. 

@Brian Garlington yeah definitely not worth the risk. How are you seeing investors navigate this tricky landscape so they can legally obtain market rents for properties where tenants have been paying way below market for years? I’m all about finding mutually beneficial arrangements but these tenant laws sound very lopsided so I’m curious how successful investors are going about it.

@Brian Garlington I just reviewed a lease with the clause permitted reasons for eviction “such as non-payment of rent, breach of lease, damaging premises, drug or other illegal activity, disorderly conduct, rehabilitation of unit, landlord or relative occupancy.”

In speaking with an agent he too was under the impression a buyer (landlord) could move into the unit they were purchasing, so I’m wondering if there were 4 owners could they all 4 move into a 4-plex and effectively require the tenants (on month to month leases) to move out?

In Berkeley the eviction laws give tenants significant protection which makes it hard to raise rents for years or even decades. There is a rule which allows landlords or family members to move into the units, however, so I'm wondering if anyone named as a GP or even LP in my LLC acquiring the property would be considered a landlord and thus able to execute this provision?

@Robert N. Pay the fee to have a broker go and find you the right loan, saves you the hassle, saves time, and a broker worth their salt should be able to guide you on the right loan option for your particular situation, and hopefully have a relationship with a lender who offers it. Good luck!

@Kaylee Walterbach Coastal Beach towns and inner state destinations showed their resiliency through the pandemic while airports and airplanes continue to make headlines for all the wrong reasons, further endorsing ground travel is a great alternative. Long Beach, Chelan, and Leavenworth here in Washington State are great examples of towns nobody has ever heard of cash flowing very well for STR owner/operators with linear growth ahead.

@Jonathan Greene probably why it hasn’t flown off the market, but there aren’t any 5+ caps around the Seattle area or even the suburbs so I’ve been looking for below market rents with value add Opportunity. Any additional suggestions? Thank you for your input, I really appreciate it.

@Jonathan Greene thanks for the input, much appreciated!  The area is close to downtown Seattle, units are 600 sqare feet each and include a full separate bedroom, no short walls or anything like that which you find a lot of around here.  Current rents are 25% below average for the area, and there's value add opportunity for sure.  Let me know if there are any other dettails I can get, welcome and greatly appreciate the willingness to help me decide deal or no deal!