All Forum Posts by: Vickiel Woodard

Hi Eric M. I dont use property managers because the ones in my area don't fit my criteria. I see how their own properties are maintained. ....

Thank you Paul Thompson for sharing info about the local REIA. I'm going to my first meeting next week. I'm nervous and excited.

Thank you so much @Allen Fletcher 

@Allen Fletcher I've done some of the outlines and I am now working on the details of the contract. Defining everything has been the biggest task. Undefined stuff is where problems result. 

Hello BP, I'M looking for advice on how to structure a deal. I'm a buy/hold investor and rehabber, and I just "hand shook" on a deal to restore my brother's property and help him rebuild his retirement income/legacy to his children. He has three distressed properties (owned free and clear) in a cashflow area. One of them is a possible teardown the other two are rehab and rent with about $12000 of work each. He has no money and little management skill and allowed the properties to go to the state land commisioner's and filed bankruptcy before I got involved. (Pride) The properties include a four bed/2 bath, a three bed/1.5 bath and a 2bed/1 bath. I agreed to help him by offering this deal: 1. He redeems the properties and I pay all back taxes(he has no money) 2. He quit claims the properties to me in my personal name for seven years ( not my company's due to quicker financing). 3. I own the properties to rehab and rent and retain all rents for the first three years. 4. For the next four years I pay him 30% of the rent per month per property which amounts to $200-250 per property in our area. 5. At the end of the seventh year if my rehab loan is paid , I will deed the properties back to him and set him up with property management in place. If not, the deal will extend for an additional 2-3 years. He and his wife have accepted the deal verbally and want me to write the contract. I have never done this kind of deal before and I am nervous. My brother trusts me and I don't want to do anything that could backfire or cause us problems later. My questions are: After the title work is done, what other things should I consider in writing this deal or before writing the contract? I am confident that I can get financing for the rehab. But, If the third house is a tear down, what should I do? He can not pay for it to be torn down and the city is pressuring him to do something. Note: loaning him money without leaverage (ownership) is a no-no. Please advise.

Vickiel Woodard Investor from England, Arkansas

posted 1 day ago

Hello BP, I'M looking for advice on how to structure a deal. I'm a buy/hold investor and rehabber, and I just "hand shook" on a deal to restore my brother's property and help him rebuild his retirement income/legacy to his children.
He has three distressed properties (owned free and clear) in a cashflow area. One of them is a possible teardown the other two are rehab and rent with about $12000 of work each. He has no money and little management skill and allowed the properties to go to the state land commisioner's and filed bankruptcy before I got involved. (Pride)
The properties include a four bed/2 bath, a three bed/1.5 bath and a 2bed/1 bath. I agreed to help him by offering this deal: 1. He redeems the properties and I pay all back taxes(he has no money) 2. He quit claims the properties to me in my personal name for seven years ( not my company's due to quicker financing). 3. I own the properties to rehab and rent and retain all rents for the first three years. 4. For the next four years I pay him 30% of the rent per month per property which amounts to $200-250 per property in our area. 5. At the end of the seventh year if my rehab loan is paid , I will deed the properties back to him and set him up with property management in place. If not, the deal will extend for an additional 2-3 years. He and his wife have accepted the deal verbally and want me to write the contract. I have never done this kind of deal before and I am nervous. My brother trusts me and I don't want to do anything that could backfire or cause us problems later. My questions are: After the title work is done, what other things should I consider in writing this deal or before writing the contract? I am confident that I can get financing for the rehab. But, If the third house is a tear down, what should I do? He can not pay for it to be torn down and the city is pressuring him to do something. Note: loaning him money without leaverage (ownership) is a no-no. Please advise. 

Hello BP, I'M looking for advice on how to structure a deal. I'm a buy/hold investor and rehabber, and I just "hand shook" on a deal to restore my brother's property and help him rebuild his retirement income/legacy to his children. He has three distressed properties (owned free and clear) in a cashflow area. One of them is a possible teardown the other two are rehab and rent with about $12000 of work each. He has no money and little management skill and allowed the properties to go to the state land commisioner's and filed bankruptcy before I got involved. (Pride) The properties include a four bed/2 bath, a three bed/1.5 bath and a 2bed/1 bath. I agreed to help him by offering this deal: 1. He redeems the properties and I pay all back taxes(he has no money) 2. He quit claims the properties to me in my personal name for seven years ( not my company's due to quicker financing). 3. I own the properties to rehab and rent and retain all rents for the first three years. 4. For the next four years I pay him 30% of the rent per month per property which amounts to $200-250 per property in our area. 5. At the end of the seventh year if my rehab loan is paid , I will deed the properties back to him and set him up with property management in place. If not, the deal will extend for an additional 2-3 years. He and his wife have accepted the deal verbally and want me to write the contract. I have never done this kind of deal before and I am nervous. My brother trusts me and I don't want to do anything that could backfire or cause us problems later. My questions are: After the title work is done, what other things should I consider in writing this deal or before writing the contract? I am confident that I can get financing for the rehab. But, If the third house is a tear down, what should I do? He can not pay for it to be torn down and the city is pressuring him to do something. Note: loaning him money without leaverage (ownership) is a no-no. Please advise.

Congratulations and Thanks for sharing. I'm currently working on a BRRR. Rehab is almost complete ( all my cash) and the tenant screening has begun. So has the search for a lender to finance the new mortgage.

I've invested in 30K properties via county auctions. Depending the on the area the legal stuff may be more complicated but it can still be rewarding. Financing: Local banks and local city offices can be very helpful when you're trying to provide quality housing in a low income area. Before you apply, go into a local bank introduce yourself and ask to speak to a loan officer to get a feel of how the bank will view your application for funding purchase and rehab of a 30K property. If you get the wrong feeling about it, don't apply. Some people to contact in an area: local police or sheriff, the Mayor or the city council/staff, HUD county office (they know which banks will finance), local established business owners, local Pastors and church officials, anyone in the area of the property with a nice house. Often these people sit on committees that are influential in the city (even on loan committees or boards of banks). Suggestion: Once you get any kind of funding going (credit cards/HELOCS/quickmoney lenders) and you've purchased the property, clean up the outside first! This will impress upon the neighbors and "nosy" drivers that you're doing something to improve the area. As inquiries come, let people know that you are aiming to improve the community and are "ticky" about who you rent to. Ask neighbors if they know anybody who may be interested. Gossip travels fast in nested communities so put up a "redevelopment" sign, so people in the area can help you look after your property and your interests. This strategy has worked for me, and one of the first private lenders who came to my rescue was from the neighborhood. So, please don't assume that $30K houses are just slums, the book tells the story, not its cover. Sometimes renters in the low income area need to be taught how to be a good tenant...everyone does not have the patience for walking through the lease, providing checklist sheet for inspections, providing "do's and don't ever" list, giving out property manager's # refrigerator magnet, $25 rent discount coupon for 3 excellent inspections. Disclaimer: I live in the area where my rentals are located and my community has come respect my standard for tenants.

Be a part of the change you want to see. Go Madeline J!!! You need information and direction. I found both by talking to A HUD representative. I was given a contact at the Arkansas Development & Finance Corp. who gave me a CD about a program called CHDO (Community Housing Development Organization) that provides the guidelines, requirements and application process for working with Neighborhood Stabilization Programs. They provide checklists, proposal development help and basically solutions to all of the red tape that I may encounter. I am just getting into it, but it sounds like where you need to look also. This is the organization from which many CDC's get their money in our area. Best wishes for your success. With God  all things are possible!