All Forum Posts by: Zach Hawrot

Would you recommend paying the same hourly rate regardless of what side of the business is being worked on: finding a new tenant, fixing a sink leak, shopping loans to banks, etc? 

I have a business with two other partners. All of us have invested an equal amount of money as well as time. We have a handful of properties now where our strategy is to buy, fix up, and then rent the property. 

My question deals with how to compensate the roles each of us play. For simplicity sake:

Partner A finds and negotiates deal.

Partner B is project manager, handling all tasks needed to get property up to date.

Partner C is property manager. 

Currently, any time spent working within our role isn’t compensated and that’s what we are exploring now; we’d like to create a system where instead of all of us trying to put equal hours into it, it makes more sense to pay each of us like we were hired for a business.

Do any of you recommend a system for getting this done? Would it be as simple as logging the hours spent working each task, whether it’s sending out mailers, making a Lowe’s run to fix a broken door, or interviewing potential tenants? If so, do all tasks get the same rate as the next?

I believe the answer to this can either be simple or creative, which is why I figured I’d throw it out here to see if anyone has any good systems that has worked for them. Thanks for the time!

Thank you for all the great input -- @Jonathan Greene summed up exactly where I am at. For my position, it's not so much the commission saved/made on the 2-3 sales, it's the possibility that I will add 2-3 properties as an investor that I wouldn't have found without the help from the MLS.

I still have another full-time business, so all of this would just be to stay closer to the pulse on the area. 

Thank you very much for your input. My main occupation is the entertainment industry, which is shut off from the virus, so trying to put this time to good use, which is why I'm weighing this situation from the perspective of an investor. 

I've read much of the discussions/articles on here regarding the benefits of obtaining your real estate license as an investor. I have one question:

Would it, more likely than not, be worth it to get a license just to have the advantage of the MLS? My thinking that if it leads to 1-3 purchases a year, then that's worth it. Having no access myself, I just wasn't sure how likely it is to find deals on there as opposed to the other ways I'm finding them as discussed on this site.

Appreciate any info!

Does anyone have contact information? It seems they are currently in a lawsuit, and I need to contact them regarding one of their properties. 

When bidding on a property you wish to BRRR, is there a minimum benchmark you typically strive to achieve?

For a perfect example, if you can estimate the ARV will be 100k and know that you can complete the property for 80k, you're going to be able to estimate pulling out 100% of investment (assuming you can refinance for 80% of ARV).

Of course pulling out 100% or even more would be the top goal, but what the lowest percent benchmark you would accept while considering your business model the BRRR strategy?

So would completing the property for 90k with a 100k ARV still be a healthy number even tho you're still leaving 10k (which is 10% of the up front investment) in the deal (assuming you can refinance for 80% of ARV)?

I would say yes, as long as it's less then 20%, around 15% lets say, then it's still scaleable but wanted to know anyone else's personal preferences here. No, I wouldn't prefer that for every purchase but I'd treat it as the lowest benchmark I'd gravitate towards if the buyer won't negotiate lower. 

Looking to BRRR a property where half of the expense budget will go into redoing a retaining wall along the driveway. The cost of just the wall is around 20k.

My question is how much will a new wall affect the price of the new appraisal? Could we expect a direct 20k uptick? 10k?

I appreciate any info on this one!

Zach

Thank you for all of the info. I knew short sales are unconventional. I just wasn't sure if ours was different. I feel much better now. Thanks again!

Over 60 days ago we placed a low bid on a house being sold as a short sale. The buyer immediately accepted. Now we just needed the bank to approve and the house was ours. Since this is a loss to the bank, they are taking their time, especially because the offer was under 10k. We've reached out to the realtor many times to speed up the process but each time he says they are still working on it. 

We also know that no one else has offered on the property so it's not a bidding war. 
Is this standard for a short sale? Does anyone have any means to speed up the process? 

The slow process doesn't affect our business. And all things considered, if we get it at this offer it's a heck of a deal. We would just like to speed it up one way or another but haven't been able to do it.