All Forum Posts by: Ian Ray

@Jeff Kehl,  They will be on the market shortly.  I have a relationship with this specific broker, so he keeps  me in the loop on everything he gets in the pipeline.  All I have is a first look most times.  As I stated, I have no multifamily experience and am trying to figure out how to finance them.  I wouldn't harm my friend's reputation by putting a deal under contract I have no idea how to close.  Which is why I reached out to the community here on BP for advice. I figured it would be poor form to potentially hurt a friend's relationship with his clients by wasting their time.  

And I also find it ill advised to potentially lose earnest money and definitely loose Due Diligence money on a deal I have zero idea how to close.

Any other questions?

Hello everyone,

So, down to business. I have 3 pocket listings a broker friend sent to me that are things I can't pass on. I have no multifamily experience and very little liquid, but I feel these deals speak for themselves. They are stabilized assets with high occupancy rates and great rental history. These deals are in the Metro Charlotte area, and have value add components as well to force appreciation.

As they currently sit, with no updates or value add plays, we are looking at cap rates of 8.5 on a 1 million dollar price tag, 9.6 on a 2 million price tag, and 9.1 on a 1.2 million price tag. All properties have rent at least 15% below market, and would not take much to update to market standard.

As a novice in this market segment, I have ZERO issues with partnering with a more experienced investor, and giving up a sizable portion of the deal in order to acquire it, and then refinancing them out once I am eligible to do so with the property in our possession.

On one of the deals, the Seller is so motivated he is willing to offer a substantial carry back at the closing table in order to help me cover costs of financing and help buy down whomever I bring in to the deal. He really just wants to retire and not have to actively manage.

I say all this to ask my real question: How the hell do I present this professionally to a person or institution so they can feel reasonably inclined to take a chance on me and the deals? I feel like they are too good to pass up in the Charlotte market, due to a plethora of factors.

Thank you in advanced 

Hello everyone,

          So, down to business.  I have 3 pocket listings a broker friend sent to me that are things I can't pass on.  I have no multifamily experience and very little liquid, but I feel these deals speak for themselves.  They are stabilized assets with high occupancy rates and great rental history.  These deals are in the Metro Charlotte area, and have value add components as well to force appreciation.   

          As they currently sit, with no updates or value add plays, we are looking at cap rates of 8.5 on a 1 million dollar price tag, 9.6 on a 2 million price tag, and 9.1 on a 1.2 million price tag.  All properties have rent at least 15% below market, and would not take much to update to market standard.  

         As a novice in this market segment, I have ZERO issues with partnering with a more experienced investor, and giving up a sizable portion of the deal in order to acquire it, and then refinancing them out once I am eligible to do so with the property in our possession.  

On one of the deals, the Seller is so motivated he is willing to offer a substantial carry back at the closing table in order to help me cover costs of financing and help buy down whomever I bring in to the deal.  He really just wants to retire and not have to actively manage.

       I say all this to ask my real question: How the hell do I present this professionally to a person or institution so they can feel reasonably inclined to take a chance on me and the deals?  I feel like they are too good to pass up in the Charlotte market, due to a plethora of factors.

Thank you in advanced        

Hello,

I just had a general question for my Charlotte investors, as well as those who enjoy the Charlotte market.  Have any of you gals and guys been looking much in the Druid hills area?  I have heard that there have been pockets of redevelopment going on in that area, but I have yet to drive it myself. How do you all think 4 cookie cutter 1,100 Sqft homes would do there?

@Ryan Battista, if I come across links I find of value, I will be sure to drop them in this thread.  But everything you need to know is here, somewhere.  Also, you need to connect with a RE attorney here in NC to make sure your assignable contract is valid and legal.  I have dealt with some wholesalers that had contracts that were not truly assignable.  Avoid legal document websites at all costs in situations like this, unless you are using the templates for a starting point.  Be sure to get a legal expert to look it over before presenting to the seller.  It is worth the expense.  And it will be a one time cost.

Good luck

Ryan, there are a lot of resources in the specific forums for wholesaling that you can check into, as well as comb through the blogs here.  Using the search bar will get you very far.  Also, check out the Bigger Pockets file place.

@Shenice B. 

I am more than happy to share with you my breakdown of costs! Look for a private message from me in the next 24 hours (I am headed to the gym, have to stay fit!).  But, to answer your general questions, I am purchasing "One-way" containers that are within 2 years from manufacture.  These are essentially brand new, but still come in at a used price point.  Also, I am buying in bulk to give me an economy of scale. 

In regards to your permitting issues, what road blocks are they putting in your way?  In my experience, and in the experience of my mentor as well, I generally don't "check" with permitting departments on things.  What I do is submit my plans to them to be permitted while I am still in the contract phase of a land acquisition, and I make closing on the land contingent upon being approved for my intended use.   That is what I will be doing with any area I put these homes, other than the proof of concept project.  The reason for that is because where I will be building (private land that does not require county permitting in that state) doesn't require I go through that process, and it is more just to do a feasibility run, as well as discover true costs as far as labor and extra material. 

Another aspect that will allow me to control construction costs is by not using an outside construction company.  

I would love to connect and discuss further with you!! Maybe we can make this a movement.

@Terina McKinney

I will keep you updated as I progress. The plan is to have a proof of concept project up and running in the next 45 days, so I will be posting all phases of the project. From design to final product. Stay tuned!

@Sterling Cox,  

     You are absolutely correct that there is no convention in this type of building.  And behind that barrier lies the opportunity. In my approach, I have always taken the John Rockefeller approach to things like this.  Before him, there were very few conventions in refining oil profitably, but he grabbed the reigns of Standard Oil, and the rest is history.  I will definitely reach out.

@Brent Coombs, I will keep the community apprised.  Look forward to the updates!