All Forum Posts by: Steve Sauro

Hello all - 

Not sure if this is the place to post for feedback on this but........

I purchased an investment condo on the Eastern shore.  The condo is on a canal with a deeded boat slip which is rare where we bought.  I have annual tenants in the unit creating some cash flow BUT I know I can capture additional income by leasing the boat slip during May - October

Does anyone have any experience with this?  Pitfalls to avoid or at least be aware of?  Screening prospective 'tenants' seems different only because you can have great credit, clean criminal and still be a slob and leave crap everywhere.  That is what I'm trying to avoid by being a good, responsible property owner

Any input is much appreciated.

Thanks BPP peeps

Thanks Brandon!
It is.  He is a good friend and realtor/broker.  We have done multiple deals with him and I feel the same way.  I was torn between 'learning myself' and just spreading the wealth - I think I'll run with your suggestion and my gut feeling and pull him in the mix.  I really appreciate your feedback

Have a great New Year and thanks for the response

Steve

Hello,

I'm looking to make an off-market deal on a condo in Delaware.  It is tenant occupied and I will keep the tenant.  The property will initially have a small but positive cash flow.

The seller is willing to sell off-market.  I've never done a transaction like this before.  I 'think' I should be able to have a good title attorney take care of everything BUT I'm not sure.  My realtor who I'm also friends with offered to handle everything for 1% instead of the customary 2.5% commission

2 questions: 1) do I need the realtor at all 2) does a 1% fee  seem reasonable considering I would have to pay the title attorney (or another attorney) for the contract forms?

I've been looking for an opportunity like this and now that it appears to be here I don't want to misstep as I go.  Any help/suggestions or experience in this is much appreciated

Thanks

Steve

Thanks for your reply.  That was my initial thought as well.  Typically when I use my guy he will say 'conventional 30-year fixed at 3.25% but if you want we can buy it down etc......"  This new lender came out of the shoot with buying it down when I 'think' I can get a 3.25 or 3.375 MAYBE a 3.5% - without paying anything.  

Am I missing something?

Also, I do have another lender in Delaware I can throw in the mix.  Does it matter at this point if the preapproval letter came from this guy and I switch to another lender?  They only accepted the offer on 11.14. Any help is appreciated

Hello -
I have a lender I've used for 4 deals in MD.  He is creative which helps me.  I just put an offer in and it was accepted in DE.  I thought my lender was licensed in DE but that will not happen until 1.1.22  He referred me to his 'guy' in DE.  He is being up front with me and sent me this.  I'm not sure how to crunch the fees with a loan of 195k.  

Below would be my pricing for this loan, this is an investment property and at 75% LTV on a conventional loan there is a fee charged by the agencies of 2.125% we need to build into the rate/terms.
3.25%, 1.25% points3.325% .75%3.50 .25%
All other 3rd party fees will apply and there is an UW fee of $995 charged by the lender. Please call me to discuss.

Any thought/input are much appreciated.

Thanks!!!

Andy - thanks for sharing the experience and your thoughtful input.  I LOVE this forum and BP.  So eager to learn and grow

YUP!  Totally how I was going to structure it.  I'd like to help my brother out and give him a jumpstart - and then hopefully we can then be equal partners in funding the deal and rehab - thank you for taking the time to respond to me

Thanks Oscar!  Was my understanding of materials etc correct?  You bought materials did the work and then after the sale did you and the investor split the material cost or was that part of your split?  As an example.  The profit after the flip was 50k.  You spent 10k on materials. So the investor kept 25k and you got 25k but had to deduct 10k for the materials - so your net was 15k?  I want to be clear on that part of the deal.  Thanks!!

Thanks Barnard!

Thank you for your reply.  It's my brother who is a licensed professional that I'm trying to pull into deals - that is why the 50/50. It would be great to try to make a successful run out of flips for the next 10 years in addition to the long and short-term rental properties I currently have. 

 I totally agree on the legal document just so it is clear to all.   

I would love to hear opinions/experiences on this thought.

Thanks!!