All Forum Posts by: Teri Feeney Styers

@Vincent L Sanchez C/D neighborhoods are generally classed that way because of the people. Yes, there can be external reasons - like a stinky factory next door - but mostly it is because bad landlords or property owners fail to maintain their structures and fail to enforce leases and rules. There's always a certain number of "don't give a sh**" people out there who are looking for easy places to live where they won't be hassled to pick up their trash, mind the noise, etc. An area can be turned around to a certain extent if property owners band together. Why don't you reach out to other surrounding owners and create a group?  Ask local law enforcement who the trouble makers are. Discuss which properties need help and what you can do about. Share leases, co-op on painting, etc. It only takes 2-3 nice buildings on a block to make an impact. 

@Jassem A. In the olden days we used owner financing and even subject to financing when we were young and poor. The "slow flip" I am referring to was purchase the property in the traditional financing way and then live there while rehabbing and improving (adding bedrooms, getting the yards back in shape, updating finishes, building or adding shop space, etc.). We were in the first one 5 years, the second one 2 years, then 13 years, then 9 years. Each time we made a nice profit to roll into the next one. The last one we paid cash for and self-funded the improvements too. When we sold it we paid cash for a new build. That's SLOW - but effective. 

Basically every personal house we ever owned except this last one which we built from scratch. We have done tons of non-occupied flips too (fast method). But we had four kids, a hubby who was a car guy and needed a shop or big garages, and a limited income. Adding value and sweat equity to the homes we occupied was the only way we could afford the bigger properties we needed. And we slow rolled those into better properties each time until we were finally able to pay cash for the last couple. 

@Amanuel Gebrelibanos I assume you are working with an investor friendly (knowlegable) agent to find your property. Many agents are also investors and have a network of subcontractors. You can ask your agent for referrals or ask your agent to put out an agent to agent broadcast searching for the type of contractors you need. Another good way to meet people is to get bids while you are under contract and doing your due diligence / inspections. Bring in several plumbers, several electricians, etc. (or several GCs who will hire those people for you). See who clicks with you (and who actually answers their phone! They can be very busy these days...)

@J Newman to answer your HELOC question: yes, you can use those funds for business purposes if Dad is comfortable with that option. However, he (you) should keep it "clean" and not also use it for personal reasons. I have a HELOC in place on our personal residence and have used it exclusively for flips and spec builds. You are correct - the terms can be great and with the exception of the monthly interest payments, you control the payback schedule.

You can add a business or personal line of credit (LOC) as well if you can get one. For quickie emergencies there are always the "18 months no interest" options at Lowes or Home Depot along with similar terms from your credit cards (those checks you can write for a 3% fee and then have 12-18 mos to repay).

You mentioned great cashflow. And you mentioned Cap Ex. So it sounds like you are setting aside some funds. Perhaps you need to redirect some of that cashflow for a year or two to get things straightened out and maintenance caught up. 

With 62 units you need to set up a reserve asset plan similar to what an HOA would do. Make a list of all assets and their components (how many roofs, refrigerators, heating systems, etc?) Note their ages and realistic life expectancy. Then figure out (in today's dollars) what it will cost to replace. Let's say you have an HVAC system that will cost $10,000 to replace and it should last another 10 years. Then you know that you need to be setting aside $1000 a year so you'll have those funds. These dollars can be parked in a savings account with longer term amounts layered in higher paying CDs so that you are somewhat keeping up with inflation. You could also add 2-3% to the amount set aside each year to account for the increased cost too.

It is going to take a disciplined plan to deal with the short term "musts" and then set yourself up for an easier time in the long run. Good luck!

@Jared Rollins Where exactly in Colorado? (BP always uses Denver as a pin). You might try a new title for your post specifying the area. Also, you say you have a "builder lender" but then it says you need funds - can you clarify? And since you are out of state you will need to be open to suggestion on design, size, etc. What's popular and saleable in one place isn't great in others. Maybe add a Realtor to your team to just weigh in on what's needed and wanted. Last thing you need is a spec house sitting on the market too long. Good luck!

@Gyn Samples an RV park is less of a real estate investment and more of a business investment. When you say "manage" I hope you mean move to the area and live on site. The best parks have active staff out there every day dealing with trash, lawns, pools, etc. You got some good advice above regarding finding agents and lenders. Now you need to do your homework on the areas in regards to zoning (are you building from scratch?), tourism, future development, etc. In my area, only certain types of parcels can be developed for that type of use. Some areas have expensive water and sewer tap fees and others are cheaper. A "good deal" might be too far from the highway or lack surrounding amenities that are appealing. Or they may be too crowded and unpleasant to drive big rigs through. What will make people want to choose your park over others? 

Hi @Adrian Jones - I don't have any interest or specific knowledge in your area; but your headline said "how to sell..." so here is my two cents worth for ALL landlords getting ready to sell. I have shown and sold many tenant occupied properties (good tenants and bad). There is one thing to remember: the tenants are NOT in charge. Virtually every lease has a clause in it about reasonable access by the landlord or others. Usually it requires 24 hours notice. So, get with your tenants and find out their normal schedule (do any of them sleep during the day? Have a baby that naps? No Sunday mornings, etc.) Then set up a showing schedule that reasonably accomodates this and stick to it - with 24 hours notice. You may choose to be present for all showings or allow Realtors access to a key box. Tenants will be notified 24 hours ahead of time - not asked permission. Remind the tenants that may be prone to unpleasantness that the lookers may be their next landlord and they should be on their best behavior. 

Thanks for your service @Jeremy Bourgeois and good luck moving forward in your investment journey. 

@Jeremy Bourgeois who paid the VA funding fee? It has always seemed a little disingenuous to me that the VA offers "0%" down - but then requires the funding fee. Personally, I think it could be a great marketing plan for sellers if they purposely advertise to VA buyers and offer to cover the funding fee. Many agents steer their sellers away from VA buyers (in a multiple offer / hot market situation) because they perceive the VA loan process to be difficult. And yes, some under maintained houses struggle to meet the VA inpection requirements. But obviously your brand new home wouldn't have that problem. Besides, it is a little unpatriotic to snub a VA buyer for another type. However, I would definitely want to see the loan handled by a "local" lender - not one of those online VA loan companies. I've not had a good experience with those. Congrats on the house!