All Forum Posts by: Steve Sorensen

I have one SFH in La Marque and one in Texas City. Currently working with an agent that is not performing well, looking for someone new. Please direct message if you work in this area. Current agent doesn't live in the area and doesn't know it well, and isn't doing anything extra to get these places sold (won't do an open house, hasn't called back people who did showings, etc)

Hi, looking for a HIGH QUALITY handyman or contractor for miscellaneous tasks around a residential property in Littleton, CO. This includes small painting projects, deck refinishing, fence repairs, landscaping, etc. I've gone through a couple handymen that overcharged for very poor work so I'm looking for recommendations from people who have actually worked with someone in the area. Thanks in advance!

@Steve K. That’s great to hear! That’s definitely the ideal scenario that I was concocting in my head to convince myself to give them a shot, but without them showing much interest in submitting a more formal application I opted to deny the request.

@Michael Baum they said they were a traveling nurse but didn’t seem interested in the background check and lease, although they didn’t say explicitly no. In any case, I denied the request, agreed with all the other points everyone made…they requested it at my normal rates for the whole year which would be significantly above what I would get for a long term lease. But the more I thought about it the more I decided the risk was not worth the payoff, and I don’t have many issues getting the place rented at the same or similar rates anyway. It would have just been a way to reduce vacancy between guests and not have turnover but again, not worth the risk.

I own an AirBNB in Denver and I just got a year long request and the person doesn't have any reviews. Is this an automatic no go? I usually do month long rentals (as a minimum) but committing to a full year with a tenant makes me nervous. A year of rent sounds great on the surface but I'm wondering why they wouldn't just pursue a normal year long (long term) rental...maybe they've been bad renters or have bad credit or low income. The more I'm thinking about this the more red flags I'm thinking of. Thoughts?

Only think I can think is that it’s tougher to find fully furnished long term rentals through the normal long term rental channels.

@Mariam Jalalzada I just got a year long request and the person doesn’t have any reviews. Is this an automatic no go? A year of rent sounds great on the surface but I’m wondering why they wouldn’t just pursue a normal year long rental…maybe they’ve been bad renters or have bad credit or low income. The more I’m thinking about this the more red flags I’m thinking of. Thoughts?

@Matt M. That looks like exactly the type of thing I’m looking for, thanks Matt!

Hello! What kind of news outlets are people following to keep a pulse on the real estate trends in the Denver area? I'm looking to buy my next SFH in the Denver area and want to find the areas that are going to appreciate (or at least not decline). Looking for the areas that people and government are pumping money into. Articles/websites/podcasts/etc. with news about commercial and housing developments, anything that will give me an indication of what areas will continue to grow. I live in Littleton and I'm planning on buying in the west Denver metro and I'm familiar with the area, but additional data points are always helpful. For example, just driving around won't tell me if there's a new housing development or mall or manufacturing facility planned to start construction in the next year or two. Thanks in advance!

Great advice. So my goal is to own rental properties so that eventually I can live off the "passive" rental income. In the strategy you outlined, are you saying I would basically run each project as a flip and then if it pencils out after the rehab, I could hold the property as a rental? 

I like that strategy, and in general I run my analyses so that they can work as either a BRRRR or a flip. My only concern is that I have this one initial shot to prove to this group that I can run a successful project, and if they're looking for a longer term play with a buy and hold rental, they may not look favorably on it if I flip it and just give them a single pay out after 6 months. That being said, I suppose as long as they see their return at the end of the year they may still be satisfied, and I could reuse the money again after the flip for another project and follow more of the strategy that you outlined.

 For some context, my mentor/investor/friend brought this proposition up unexpectedly, and he knows that this is new territory for me. We are getting on the phone tomorrow and I expect that he'll have a lot of this framework built out already, I'm trying to do my homework so that I can have an intelligent conversation, bring something to the table as far as the structure goes, and show him that I'm committed by going out within a matter of days and getting a crash course on this type of investment.

Yeah the $200k was an example...for this first deal, I would expect them to bring something like $200k each so I can purchase a SFH, then in the future, they might commit to something close to $1.5m. So I will probably have something like $200k x 3 investors = $600k for this first investment. Next time around, they would probably commit $500k each for a total of $1.5m.

And yeah, to your point, I imagine they'll bring the terms to me, but trying to educate myself ahead of that instead of just showing up to the table and saying "tell me what to do". I have four properties currently that I've purchased myself so I have experience with purchasing, rehabbing, and owning/operating rentals. This is just a larger scale and different structure than I've used in the past. 

No worries on your terminology lol yes, I basically am the help...I prefer to say the "sweat equity" but it's the same thing haha and I totally agree, I'll certainly be sure to pay back my investors before paying myself, but I also need to outline the scenario where this is a success to see what my potential upside is. If the best case scenario is just paying out the investors return and I don't make any money or end up with decent equity in the property, then obviously it's not worth it.

I appreciate your thoughts!