All Forum Posts by: Stephanie Martinson

Hey all!

Does anyone know if zoning laws have to be upheld in a boutique assisted living facility with 6 residents?  I remember once hearing something from Gene Guarino saying that people cannot tell you where you can have an assisted living because it's like an elderly group home.  However, the zoning department in my town says otherwise.

It would be much easier to find a house if the zoning wasn't an issue.

Thank you for any and all help!

Steph Martinson

Sheridan, Wyoming

Hi guys-

We currently identified 3 properties for a 1031 exchange, and they all went under contract with different buyers.  The 45 identification period has passed by 7 days... now what?  Has this ever happened to anyone?  

I know this is a question that needs to be answered by my CPA and RE attorney, but I wanted to throw it out here just in case.

Thank you for any knowledge!

Steph Martinson

martinsoninvesting.com

@Kyle Wilkins It is hard for me to tell what the ARV will be unless I go through the property with a contractor, or someone that knows how much repairs will be that I'm looking to do. If you can add another bed/bathroom, that brings the ARV much higher. Many things like curb appeal, stainless steel appliances, updated flooring, new paint can bring a lot of value to a property but each one is unique, and costs vary. Keep searching the MLS and see what the typical 2/1 house costs, and 3/2 house costs, etc. Once you learn the market more, you can get a feel for about how much a property should cost after it's repaired.

It looks like you are interested in the BRRRR method. It's a great way to invest- I would research more about it, and keep looking for properties. Sometimes it takes a lot of properties to find a good one, but you can do it so don't give up!

Hi Kyle,

How do you feel about the numbers on this specific deal? I can't help but notice your expenses are highers than your ARV (after repaired value) and I wasn't sure if you are wanting people to pick apart the calculator or this specific deal. I think the BP calculator does a pretty suffice job with what you need to see in order to make a decision about properties.

I would be hesitant with this specific deal because the cash flow is too minimal for my liking, and the ARV doesn't pan out. If you thought the ARV was at $93K, then the deal would look much better.

Best of luck!

Steph Martinson

@Steven Haughey $200k sounds like a good deal where I live, but what is the market like where you live?  Also- what is the rental market like?  As @Sarah Brown said, the mortgage would be around $885/month, it seems like you should be able to rent the other two units out for that price, or a little less EACH... but I'm not sure what the Jacksonville market looks like.  

If you're planning to put money in to it to fix it up, I would bring a contractor or two over and see how much your repairs would be.  You can always put it under contract before then, and make it contingent upon inspections.  

Keep fighting the good fight!  You will find figure it out if you keep working on it.

Hi everyone-

We are so close to getting our first apartment syndication deal under contract! They seller likes our offer price, but he wants to make sure we are the 'real deal' and can come up with a 20% down payment. He doesn't want to close until January for tax reasons, but he wants us to prove that we can come up with the 20% down before he even signs the LOI. Has anyone ever come across this before? Any advice? I'm not sure how I can prove the 20% until investors actually invest their money, but I don't want to lose the deal.

This will be my first syndication, therefore I am pretty sure I will be hustling to come up with the investor money totaling at 1.6 million, and a 20% down of $957K  all the way up until closing... the only thing I have to offer right now is my word, a contract contingent upon financing, and maybe the $200k earnest money.  

The seller also wants us to show our financing terms that we are looking for from a bank, because he says if a bank can't finance the property, he will carry the financing.  I am okay with this as well, but I don't know how he's going to feel about our plan to sell after 5 years.  

Thank you to anyone who has any advice, I appreciate all the feedback I can get.

Steph Martinson

martinsoninvesting.com

Hi Saleem,

I am not a tax expert, nor am I an accountant, but I have done a 1031 on a property, and honestly it is pretty easy.  I would just make a call to your accountant, and he/she will tell you exactly what you need to do.  In the meantime, I can give you a broad overview...

1) You can make an offer now, and at closing the money from your property being sold will just roll over to your new property.

2) I believe the identifying 3 properties within 45 days is just to make sure that you are actively looking for properties within the given window.  I don't think you need to look for them all as a prerequisite or anything.  

Good luck! I hope that helps.

Steph Martinson

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Hello all-

Would anyone happen to have a LOI example that you wouldn't mind sharing? I can look up an example online, but I know the majority of you folks are much wiser than the average Google search.

Thank you for your expertise.  I appreciate it!

Steph Martinson

It really does come down to what will you need and what your goals are, 1) the capital to potentially invest in something else nearby or 2) the monthly cash flow?  That's a lot of equity to walk away with, and it's probably a good time to sell in Seattle.

I will say, it is a lot easier to manage single family rentals in the same town or a town that is close by.  If it is just a single family home, you will probably lose a lot of monthly income with a property management company.  

@Christopher Hunter the big reason that I ask is that I have spoken to a commercial lender and he has said that I can pull a new construction loan on this property, then get it reappraised after the stabilization period. He makes it sound like I don't need that money up front, and that I can just wrap it in the mortgage whenever my permanent financing comes due. My 5 year IRR for my passive investors is only around 10% when I add in the costs for repair, and without adding it in it comes to 15%. According to Joe Fairless's book, it seems as though he only adds up the 5 things that I mentioned before, and he doesn't say anything about adding in the costs for repair. So, maybe there's a chance? Thank you for your response!

@Geordy Rostad I am putting together a syndicate deal with equity partners.

@Greg Dickerson I have not spoken to a securities attorney... that is one piece of my team that I do not have together yet :/  T

Thank you all for your responses!  I appreciate you all so much.