All Forum Posts by: Wyatt Franta

Hi Blaine,

The best method to understand market conditions of an area is to get into contact with a Realtor in that location. Describe to them what you're looking for and what you want to accomplish with this information, and they'll be able to provide you with what you're looking for.

This is a free service Realtors can provide to anyone, but not all Realtors offer it, so you may need to make a few calls.

Good luck!

Hi Enrique,

You will want to do your due diligence here especially given the current tenant protection laws across the nation right now. Once you have a tenant, you can't get them out. 

Get a letter, speak with the company HR department about this potential tenant, do whatever you need to do to ensure you will get your rent paid each month. 

Good luck!

Hey Robert,

Reonomy is going the be the second-best option to CoStar. If you want a free platform, CRExi is the current best choice IMO.

Hey Keith,

For an SFR LTC deal such as this, I would consider providing the following (in no particular order):

1. Address
2. Purchase price / renovation cost estimates / ARV or pro forma CAP rate
3. Deal structuring (equity vs loan proceeds)
4. Projected rehab timeframe
5. Beginning date of project (day escrow closes) 
6. Projected exit date (expected sale date) 
7. Surrounding comps to justify purchase & sale price
8. Equity distribution project structuring (will returns be a fixed % for GP & LP(s), or is there a waterfall equity return model based upon varying levels of success) 
9. Expected ROI distribution date (After exit, and if profits, when can investors expect to get paid)

Those are just top of my head, you may not need everything in there depending upon the investors you're looking to approach this deal with. You may also want to throw in a "Funds Due By" contract as well. Because the last thing you want is for an investor to say "Yeah, I'm in!" and then go MIA when funds are needed to close escrow. 

Good luck!

Hi Ed,

The link you attached previously doesn't work. If you could post it again, I'd be happy to take a look for you and see what's going on.

Hi Matthew,

Don't go rearranging your investment strategy because of the he-said-she-said news articles. Until we start seeing a serious downturn in the net absorption of the office/flex space asset classes in 2021 due to businesses determining they don't need office space any longer and home offices are suddenly viable, every news site can go kick rocks. 

No one knows what to expect, the repercussions of a pandemic are not predictable in the slightest.

Invest in what you know works, and the probability of you preserving your wealth for the long term will be much higher.

Good luck!

If you plan on holding the property for a very long time, yes.

If you plan to hold it short term, keep the 6% R&M, and possibly consider bringing your CapEx reserves down to 8-10%. You may have had new plumbing and electrical done which is great, but what about the rest of your major systems (roofing, foundation, HVAC, etc.)? The older the property the more likely these high-cost expenditures will come due.

Hi Mayra,

Everything here looks good, however, I would change expenses from 1% to 2% annual growth. Normally, I'd recommend changing income to the same degree, but given the current pandemic that is up to you to decide.

Good find.

Hey Hud,

I agree with @Joe Cassandra here, for dated home such as this one, you'll want to raise your repair and/or CapEx reserves to between 15-18% combined (in my head I'm seeing 12% CapEx, 6% R&M)

Property taxes seem extremely high here. I'm calculating out a 3.90%~~ tax rate after ARV. This will vary by state and I hear NJ has some crazy property tax rules, so you may be correct, but I still would double-check that number.

Other than that, your post-refi numbers look good, and your rehab time seems short, but if you're sure it will only take a month I don't see a reason to change that.

If the numbers work out after making the adjustments, this might be worth pursuing.

Good luck!

Hi Don,

Make a friend in the real estate industry. It takes us all of 5 minutes to pull rental comps for you to analyze, and it will be the most accurate data available to you.