All Forum Posts by: Trevor West

@Andrew Carlson Man! I love the way you laid this out for us and congrats on the new adventure! I agree with @Noah Chappell, the onsite manager is a great idea. We are analyzing a 48-unit where the local PMs are limited and lack luster. I will definitely run this by my partner. Additionally, the "insurance policy" at the bank is interesting. Thanks for sharing. Now that you have one in the books - ride that credibility into the sky! I am not far behind you. 

@Alexander Felice I created approximately 35-40k in value since the property appraised at 135k. 

As it sits currently, it rents for $600 per side. During COVID-19 I was nervous to raise rents, especially before having refinance secured. But the market will support at least $675-$725. 

@Jeremy Toney The loan officer I have personally worked with is based out of Raleigh and is also an investor himself. But the company is based out of Texas. 

https://www.longhorninvestments.com/

If you want my guys personal information, just PM me. He is super nice and very willing to help. I have used him twice now!

@Bryan Noth Thanks for responding! It was definitely a wild time. haha. Learned a lot

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $90,000
Cash invested: $6,700

This was a wholesale duplex deal that came to us by keeping a beat on what the local operators were getting their hands on. This duplex was presented to us because of the power of follow up.

Used a hard money loan to secure the property and will refinance in 2 months into a 30 year fixed.

What made you interested in investing in this type of deal?

I am a multi-family investor. At the time I was focused on small 2-4 unit properties but am not working toward apartment building acquisition.

How did you find this deal and how did you negotiate it?

This was a wholesale deal that was brought to us because the wholesaler knew me and my partners would close.

How did you finance this deal?

Hard Money Loan

How did you add value to the deal?

We refinished the kitchens and made necessary repairs. Additionally, we removed and replaced the sheet rock on the ceilings to provide safety and peace of mind to our new tenants.

What was the outcome?

A cash flowing multi-family property

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Longhorn Investments is a great hard money lender.

Investment Info:

Small multi-family (2-4 units) hard money loan investment.

Purchase price: $88,000
Cash invested: $10,500

I went under contract on this duplex with the intention of using a 15% / 15 yr mortgage then refinancing into a 30 yr fixed. COVID-19 had other plans for me.

After my traditional financing fell through I dove into my contacts list and found a hard money lender offering 65% of the After Repair Value (ARV) before renovations actually took place. This enabled me to close on the property and immediately refinance into the 30 year fixed just like I intended and actually cost me less money.

What made you interested in investing in this type of deal?

At the time I was focused on small multi-families and this was a stellar deal.

How did you find this deal and how did you negotiate it?

Working with local Wholesalers and (before they were my team) Five Pillars Realty Group who focuses on Real Estate Investors in Fayetteville, NC

How did you finance this deal?

Hard Money Loan with a subsequent refinance.

How did you add value to the deal?

Fixed the necessary items for the tenants, provided a responsive landlord and added gutters, flooring, electrical and HVAC duct work to increase longevity and durability of the asset.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes. Five Pillars Realty Group in Fayetteville, NC is a team of savvy agents/investors focused on adding value to others and aiding them in reaching their financial and real estate goals.

Investment Info:

Small multi-family (2-4 units) hard money loan investment.

Purchase price: $88,000
Cash invested: $10,500

I went under contract on this duplex with the intention of using a 15% / 15 yr mortgage from a local bank and then refinancing into a 30 yr fixed in 6 months. COVID-19 had other plans for me.

After my traditional financing fell through I dove into my contacts list to find money for the deal. I ended up finding a hard money lender i had saved but never used. The hard money lender came through in a pinch, financing 65% of the After Repair Value (ARV) of the property before renovations. This enabled me to close on the property and immediately refinance into the 30 year fixed just like I intended and actually cost me less money.

This deal taught me the power of not giving up when the deal gets tough.

What made you interested in investing in this type of deal?

At the time I was focused on small multi-families and this was a stellar deal.

How did you find this deal and how did you negotiate it?

Working with local Wholesalers and (before they were my team) Five Pillars Realty Group who focuses on Real Estate Investors in Fayetteville, NC

How did you finance this deal?

Hard Money Loan with a subsequent refinance.

How did you add value to the deal?

Fixed the necessary items for the tenants, provided a responsive landlord and added gutters, flooring, electrical and HVAC duct work to increase longevity and durability of the asset.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes. Five Pillars Realty Group in Fayetteville, NC is a team of savvy agents/investors focused on adding value to others and aiding them in reaching their financial and real estate goals.

@Paul Moore I definitely can appreciate the Devil's Advocate approach and it is needed to keep my big dreams focused. I understand the logical way to do it is exactly how you lined it out for me. But in order to be BIG I have to take massive action and partner with someone who believes what I believe. Its incredibly scary, but anyone one this post and BiggerPockets writ-large can attest to pushing through self doubt. I believe my team and I will make this happen. And it will. 

I really appreciate your input even though I disagree with taking that approach for myself and my team. 

@Evan Polaski Thanks for the response. The course of action for me and my team is to find a property that is not listed in order to work it without the pressure of challenging a seasoned commercial sponsor, investor or team. But I do agree, having calls with potential investors is ultimately where I need to be. But starting out, getting a sponsor to GP with us, who has the investors ready, will be critical to getting the first deal to the closing table. 

I am going to dive in on making those calls. Thank you very much for the advice. 

@Greg Dickerson Thank you for the clarification. I am understanding that GPs will play an active role in the acquisition of the property. Depending on the size of the deal will likely determine who we need to bring on. If i am off base anywhere, please redirect me. But I really appreciate your dialogue.