All Forum Posts by: Tae C.

Hey all,

I just got a lead in Flatwoods, KY 41139 off Martin St.  This was a PPC lead, and I'll be honest - I have no clue how I received this given the fact that our campaign is mostly targeted towards eastern Tennessee.  Just having done some quick looking into the area and using the general comping approach I use for my usual markets, it seems pretty evident that this is a smaller town, and valuations are quite low - maybe majority rental area I would think.

With this said, wanted to reach out to the Kentucky experts to see if you guys have any experience or buyers (probably more landlords I would assume) in this area.  I think I do have some wiggle room to negotiate it down to where it might make sense for an investor.  It needs a pretty complete rehab according to the seller, and I think her price is too high although not horrendous.  But if there's some value there, I would work to move her down on the price to a more reasonable range.  

Would love some insight and if anyone is interested in working on this one with me, could potentially work out as a win-win.  Thanks!



    

@Jeremy Young @Leah C. 

Message me and I'll send you a contact of my realtors that have been extremely helpful to me, specifically as someone who is out of state.

Another Chicago based scam, sounds similar to your situation in some ways. 

Equity Build Ponzi Scheme

@Ray James

The simple answer is no, I personally would not, if for nothing else that to pay 5 points (4.9 pts technically if I recall correctly) and 15% is way too expensive in this day and age of competitive lenders. They made a ton of money on my loan with the upfront points and as many delays as I had in the rehab process. Honestly, good on them for finding avenues for good ROI like they obviously have through their lending...not really their fault in any of the difficulties I have shared above, truthfully. And I will say they're fairly generous in terms of what they approve per individual draw request, so there's that. But no, I just can't afford to pay that much for capital anymore moving forward, period. PM me and I can share some other lenders.

@Sean Cole

Yep I saw that as well.  I can't really speak into the actual legalities and logistics of it all just b/c I am not well versed in it...however, I did learn a lot about how it functions just by reading up on the lawsuit files that are posted publicly online.  But I at least agree that the Trust - Trustee - Beneficiary format is a strange one and has presented some complications and questions that I haven't had to have with some other lenders.

@Sean Cole

Definitely well aware of the ongoing lawsuit you are referring to. Yes, they still do offer rehab and ARV numbers. Their ARV actually wasn't crazy off back then...again, a whole year ago. And actually their rehab wasn't too awful either believe it or not. I don't blame this one on them - I made my decision back then based on my own due diligence anyway. Now, yes, the 5 pts and 15% are absurd and back then, not knowing much better, I was drawn in by that $10,000 down payment number. Regret borrowing from them every day. I have access to so much cheaper money now. They're making an awful lot of money on this project though, that's for sure.

@Slocomb Reed

Yeah honestly even if i sold at like $180-$185k it would’ve been just fine if it only took the 3 months on the rehab like it was supposed to. I appreciate your offer to help, definitely will take you up on it if something comes up!

@Jake Walroth

Interesting, my past experiences have been somewhat flip flopped compared to yours. But either way, unfortunately the carrying costs along with some of the overages still killed me and the refi just won’t  be very helpful for my bigger picture goals/needs. 

@Sean Cole Interesting observation there.  I guess it’s the tension of wondering if you’re just going to lose out on too big a chunk of profit by listing it below market value vs. “knowing” in as much as you can that you would get some offers going well below market value.

@Slocomb Reed @Jake Walroth In response to your all's ideas to BRRR it, and in addition to Sean's suggestion of going below market value, after the insane amount of holding costs I've had to carry, it really wouldn't put back much money in my pocket...long story short, it was a bit of a mess of rehab. You guys have obviously looked up the property. Look at how long I've had to hold it. Delay after delay after delay - some admittedly city permit related, but also fair share of just no-real-good-reason delays. It took basically a year from close to list on a 1300 sq ft house. Do the math, and you can see it went way way too long. And yes, Greenleaf funded it, which means the holding costs were absolutely insane b/c their terms are absurd. Suffice it to say, between this experience and another one I did simultaneously in another city, I have paid a whole lot of dumb tax...and even more financial "tax" in the form of losses. I need to sell this property and just recoup as much cash as I can get...otherwise, sure a BRRR would be great. If this means I have to drastically reduce the price, maybe that's what I have to do. Many lessons learned.

One more note: someone mentioned that Northside is almost “old news” at this point...With the original projected timeline being at latest spring of 2018, I do believe this would’ve sold right at the peak of all the skyrocketing values.

@Nathan Currier-Groh

That’s good feedback. Re: blue - suffice it to say it didn’t end up the way I originally envisioned. Had seen it online on a different type of siding, with that exact color combo of white, blue, yellow door and looked much better. Gambled a bit on the color with it being a bit of an artsy area. I don’t have another couple grand right now to re-paint it. Like I said, I know it’s not the nicest rehab, but if you walk through it is a very open plan and fairly well done. 

You and @Paul Sian share sentiments of the sticker shock aspect of Northside it seems.  We will see what happens this week...just takes the one. 

But also keep in mind, it’s not just my property and its blue that is not bringing people in. It’s an awful lot of the active listings that are experiencing the same thing. Check out how many price reductions have and are taking place every week. So like you said, maybe it’s just the sticker shock for the area as a whole.

Hello all,

The subject line may be a bit overdramatized...but maybe not?  Just listed a finished rehab on Apjones last week. It’s not the greatest and nicest ever, but it’s solid and was decently priced. A bit on the higher end, but there were comps to support it. However, since listing it Thursday, we have gotten literally zero showing requests. Not even talking zero offers...I’m saying not even one request for a showing. And according to my agent, a lot of his colleagues are experiencing the same thing.  Just take a look around active listings, and you see a whole lot more price reductions than Pendings. 

So...to all the locals in Cincinnati (I’m out of state) - what the heck is happening?  It’s not like all the reasons that made Northside one of the hottest revitalizing areas over the past year or so has all of a sudden gone away.  If anything, from what I understand, there’s even more development taking place in that area as we speak.  Can anyone provide some more local intel?  My realtor says it’s not just a matter of mid August being traditionally slower (mine is 2br 1.5 ba so not a family demographic anyway), it’s unnaturally slow right now.