All Forum Posts by: Travis Sperr

@Kyle L. Should be able to pull from city or county website.

@Dien Vo I'd be happy to take a look at this deal for you. I fund a ton of deals in the Twin Cities and work with first timers. Send me a note when you have a moment. 

@Account Closed I have worked with John Booth at Associated Agents in Lakewood for about 8 years - for everything from home and auto, to rentals, to fix and flip, umbrella and new construction projects. Great team, service and pricing. 

Happy to provide contact info and/or email intro - just send me a note!

@Reuben Bett I provide financing for flips in the Springs - shoot me a note to connect. Run your numbers hard money is likely less expensive than a partner.

Good Luck.

@Andrew Michael assuming the developer used a loan to build - that is correct that the only security would be in second position - regardless of one unit or all of the units. Being that is a condo building there is a high likelihood the legal descriptions are not created and recorded yet so difficult to attach to a specific unit outside of a unit number.

I can't imagine any scenario where a lender for a buyer makes a loan for said buyer to secure units under construction, in junior position on a project with a troubled builder. 

Even as the "buyer", you would need to have a very good relationship/understanding of the issues to get involved with cash.

Not likely - there are a handful of issues, here are a few:

Lender can't get title insurance on a project that is currently under construction

Buyer can't get title insurance for a project currently under construction 

*I say can't but, maybe can with a lot of paper work, bonds, lien waivers, etc.

Too much risk in knowing if the builder can finish if already in trouble

The lender for the builder isn't going to release units without some principal reduction, unless building with cash.

Your father would be much better off supplying a loan and in return getting the units - although there is a large amount of risk here based on the builders ability to finish.

If the project is 12-18 months from completion, it cant be that far along and the builder is already hurting - that is bad news.

 My last two purchases where in February 16 ( little more than 6 Months) - Bought 2 town homes in Denver.

Both right off the MLS

Property 1 - $162k plus 12k in repairs - rents for $1,850 (increase coming in March should get to $2,000 with included utilities section 8, HOA $180 per month (water, sewer, trash, exterior maintenance, snow removal and landscaping)

Property - $188k plus 2k in repairs - rents for $1,900 HOA $180 per month (water, sewer, trash, exterior maintenance, snow removal and landscaping).

I put about $60k down on each as a part of a 1031 exchange - payments are PITI $1023 and $1138 respectively on 15 yr notes at 4.5%

@Jason H. there might be 100 other threads about your exact question. Prices are up, but so are rents. So long as you are purchasing on sound principles, keep strong reserves and are buying for the long term you will do well. There are other markets that may perform better with lower barrier of entry but you have to do what you are comfortable with. 

One of the best parts of rental real estate is you don't have to buy at deep discounts like flippers, 10-15% below market value works well and is very doable. 

@Justin Raddatz you are going to have some challenges with sourcing the down payment funds if you are the one putting the money up - unless you season it in his account. If you plan to sign on the debt and be on title, that sounds like a recipe for disaster down the road.

@Jeffrey Hayes I fund a fair amount of deals in both markets - the markets have some significant differences, but based on your requirement of purchase price alone you are limited to Colorado Springs for a better chance of finding something. That doesn't mean it is easy in Colorado Springs to find a deal, but better fit for your requirements.