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All Forum Posts by: William Thompson

William Thompson has started 3 posts and replied 5 times.

@Troy Hebert Happy 4th Troy!  I just came across this and would also love to hear how things went.  I live an hour inland in Elizabeth City and started looking at OBX and Coralla same time.  Was bidding on a duplex in Buck Island weeks before the pandemic hit.  Had to do a 1031 so went another route.  Im a former commercial banker and would love to see your spreadsheet for analysis breakdown and know how things went for you out there.

What is the best way to source a private lender (or partner) for a opportunity? I have a $3MM, 80 doors (mostly SFR), portfolio offered to me that grosses $43k a month. A 3rd generation family runs it and...well...many of these doors need love.
I have a PML who will do 100% purchase and rehab costs as long as we are at 75% but he needs $75k per loan and this is a lot of C class properties at the moment and they will not qualify. Plus I would have to do one at a time. I have a $1.+M portfolio now with decent reserves but I cant afford all the closing costs that come with this large a transaction. I need financing that can purchase the entire thing on essentially a bridge loan while I BRRRR them out. I had a partner who was going to let me just take $500k/14 doors and the closing costs to do so as my "unofficial wholesale fee" and he took the rest of $2.5M/66 doors of the would go to him but his 1031 fell through.
I really dont have anyone in my circle and, as a commercial banker, think it would be a little unethical to ask any of my clients. That one partner was really my only option locally.  I was thinking about reaching out to some Financial Advisers who may have clients who would be interested.  Are there any vetted investor websites (ex Lending Club, Prosper) or have I perhaps not come across yet the PML website/contact who would take this on? The deal supports itself very well (pretty much a 10% cap rate) even when I finance the entire purchase and closing costs.   All before the BRRRR.  Would love to hear the responses we can crowd source on this site. Thanks in advance

First off my goal;

My line of work is changing at some point at no fault of my own (finance) and what I do (which pays six figures) is the target replacement level income TO WALK AWAY FROM THE JOB. NOT RETIRE. I'd like to go to the local community college and brush up on plumbing, electrical,etc. so I can do that preventative maintenance when tenants are turning (that means on my watch lol). I've been 1031ing some of my more expensive assets ($130k SFR in 2013, now $230k) that were generating $1300-$1400 p/month (now $1600) to buy homes with better yields at small purchase prices, spreading the risk out while having a $70k/$1000. One was because I could sell the prop that was 4 hours away while buying the smaller SFRs here in my hometown (i.e. I'm closer to keep my eye on investment). The other was 1/2 of 2 foreclosures I bought in 2019 in the exact similar $ invest spread ($130k, now $230k). I again took funds to 1031 better cap rate smaller homes in a portfolio purchase that had tremendous equity and rehab potential. I just recently BRRRRd a $38k purchase now worth $74k with about $15k of invested. Rented it In one day for $950 with 30 calls in 24 hours of a FB marketplace listing.

The last house of those two is where my question is found.  I have tenants in there who I moved on my dime because they lived in my Mothers previous home which we now live in.  I cashed in on a larger home, renovated, and move the family in.  We are now debt free except the loans on the rentals.  I'm in no hurry to move them but they plan to leave this summer when the wife retires from the hospital. 

I have about $1.3m in SFR that generates about $180k in rental sales. My intention was to sell that last foreclosure as it had the worst cap rate. I at most could rent this $230k for ex $1650 now. There is a local investor who built new houses in the target market bigger and nicer at $1700 some I'm tapped at that $1650. Im thinking take the $100k gain in the last two years and pay down debt. A set of maturities start rolling in 2-4 years. At that time I'll likely put about $50k toward balances each year. If I do that now I'll likely be down half the loan balance on the last maturity of that set. HOWEVER if I kept a tenant in there for perhaps another year at this level of appreciation I could see it go from $230k>$245 perhaps?

Again my goal is to get the houses to supplement my income ASAP with as little debt as possible.  I'll likely never be debt free (because I'm a student of that thought, as long as the debt makes money). My question to some of the smartest people on the web is thoughts on % of appreciation that you'd say "sell" when my tenant leaves? Or should I do another 1 year lease and let it appreciate and taking those gains and get a bigger loan pay down.  This question is based on my shrinking belief that the amount of appreciation we are seeing will eventually slow.  I mean...they are appreciating at an unsustainable rate....right? Again what % of appreciation would make you want to cash in?

Looks like I played this correctly.  I am thinking about dipping back into it late q3/early q4.  I have my sights on a duplex in a perfect RE development.  I was hoping to do 1031 but may not be able to turn it as quick as possible.  If I can get closer to late q1 in 2021 that would be ideal.  I feel like after a summer of missed rentals, they may want out of the game.  

I am concerned that the financials will not look good however when submitted to my lender.  

Curious to hear everyone's thoughts beach/mountain rentals and other short term rentals.   I was actively in the market for a beach house but I believe I'm going to hold off. I think it'll be smart to hold off and see that viruses impact. It may benefit me to see someone panic and want to sell. I live in a area close to a heavy tourism reliant community.   I feel by next fall you'll see a substantial amount of inventory.