All Forum Posts by: Tim Blanchard

I'm honestly disappointed in BP for putting so much behind this Pace guy. Although I guess they did publish his book so...

I did the onboarding call, saw the $8800 price tag for the "mentorship" program and decided to take a minute and dig deep.

I even bought the book. It's great marketing. Really great. But it's utter hype. The book BLOWS.

This is the deal:

Let's figure out a way to cold call as many distressed folks as we can to see if we can buy their reverse-mortgaged properties and put a few grand in their pockets, a few grand in a "TRANSACTION COORDINATOR"'s pockets and so on and so on.

It's borderline bottom feeding and it makes me pause to consider the integrity of BP, David Greene and Robuilt Robbie with his awesome hair.

I love learning about REI and love what I've gotten from this community thus far but the whole SUBTO tribe wreaks of used car salesmanship.

Sorry for the rant but that's just my $.02

I just had the “call” with them yesterday and decided to do a bit more digging before dropping $8800 on the program. Pace is definitely a force to be reckoned with but honestly after watching his videos for a bit you recognize a “formula” to his content. For every 15-20 minutes of fat there’s about 2 minutes of meat. Soooooo much dribbling for a couple of slam dunks.
He’ll sit there and discuss how he’s going to help out this many people and tape so many hours of content and close that many deals. It’s really impressive! But I don’t think the $8800 will leave my wallet to go to his today.  Maybe I’ll feel different after watching a bit more but at this point I need a break ;-)

So we’re closing on a mixed use property in a couple of weeks and are super pumped to get things rolling!

It's a cash deal (using HELOC funds).

There’s a 2 bed 3 bath house that is in dire need of repairs so the first order of business is to get that rent-ready so our carrying costs are somewhat minimized.

There are two other buildings on this 1.5 acre lot. One is a store front space that used to be a marine supply store and the other is a workshop/garage.

We fully understand that it’s going to be at least a year before we can do anything with the commercial buildings but are planning on cleaning up the parking area in front to rent to a couple of food trucks daily.

The property is located less than a mile from the entrance to a very popular state park and the food trucks will be able to capture that traffic during the warmer months.

Ideally, one of the food truck operators will decide after a while to grow their business into an actual brick and mortar and we’ll strike up a mutually beneficial deal with them to lease the space.

There's no way to subdivide the property but I'm wondering if there's any shot of refinancing the house once we've done the rehab so as to pull some of that HELOC money out.

Another idea is to approach a local bank with the overall plan and see what kind of financing we could get for the entire development project.

Thoughts?

@Stephanie P: A lot of assumptions being made there but thanks for the comments nonetheless ;-)

Subdividing would be an amazing move I just dunno if the county would slow roll that process like they do everything else.

We're more looking for the refi options after rehabbing the house and "cleaning up" the commercial space.

We're buying this whole property for less than 50% it's value so we're coming into it ahead.

Looks like our next deal is happening!

We're buying this unique piece of property that was at one time a popular retail location that sold marine/fishing gear. It's got a great foundation as well as a house on the other side of the property that we're looking to rehab and rent (long term) to carry the holding costs while we figure out what the heck to do with the commercial part. We're doing a cash deal for the property (HELOC money) but want to finance the rehab of the house (~$150k). We're confident that the ARV on the house alone is well above what we're paying for the whole property plus the rehab costs.
There are a ton of lenders out there with these “fix n flip” loan products but I’m apprehensive about engaging them since their terms seem pretty aggressive and we’re really looking to hold on to the property to cash in on the long term use of the space.

I would love to hear any suggestions on how to run the financing on this bad boy…

Initial purchase price - $160k (we've got HELOC funds for this but could go a different direction if it makes sense).

Rehab on house - $150k (realistically more like. $100-$120k but playing it safe).

ARV (on house alone) - $400k

Just got the "term sheet" from Arron ("arrron.seaburyinvestmentsllc at gmail.com").

It's total BS: Download here

I googled and found this thread. 

Thank you Bigger Pockets Hive!!!

Yeah. I think it’s gonna be a pass on this one. 
thanks for the input guys!

Just looked at a property today that we'd really love to buy, tear down and rebuild.

The numbers almost make sense at a high level but I'm more curious about the financing strategy (costs) for such a deal...

We would like to put in an offer at $400k. The ARV looks to be ~$1.2m after about $400-500k in construction costs.

I'm guessing we'd be looking at ~$200k net at the end of it all. Does it seem like a lot of risk for not a lot of reward???

For the financial picture: I'm guessing 100% LTV for construction and 80% LTV for purchase price. If we're making interest only payments on the construction loan at 8.5% for 6 months, that's around $36k in interest. Am I missing something?

The property is clearly overpriced having sat for 120 days without any offers.

I think we’re just gonna revisit in a month or so.