All Forum Posts by: Zane Cress

 Just used them last week to close a deal that someone else could not. Worked out great.

 Thank you for the replies. Got it done with Easy Street Capital. Came through quickly and it worked out great. Thanks Zachary Deal for the help. 

The dreaded compressor death on an old AC unit is forcing me into a full system upgrade. It's a smaller condo that uses a 2 ton unit. I'm sure the quote to replace will come in at $5-6k. I'm thinking about buying a unit from Lowes or Home Depot myself and then finding someone to install for me. I have replaced 3 units in these condos so I know what systems to go for. Anyone had luck doing it this way? I am probably selling this unit next year so I'm not looking to go top of the line on a rental condo.

 Sent you an email

Currently have quotes on a DSCR but looking for a 12 month bridge option. MoFin has been unusually bad about responding so I am seeking someone who can pull something off by April 1. If you're a GA lender let's connect.

Deal - 775k house in prime location well under market value.  1031 Exchange funds ready to deploy for down payment. 

Being an agent who literally just put a FSBO under contract for some first time home buyers I will say this and hope it helps.

You can list on Zillow easily, and you can probably pay to be listed on your local MLS. The odds of you having a successful open house is slim unless you can get the email list of all the local agents who have clients looking. You could schedule one for 3-4 weeks away and put it on your Zillow listing but the odds of getting a large crowd are low. You have to specifically search the tab that is FSBO on there, and a lot of people don't do that.

You should be able to pay for real estate contracts used in your state. A real estate closing attorney could assist, and will charge you a fee for the service or you could pay an agent for the services of writing contracts but nothing more. Additionally e-signing docs will be the best path, no one hand signs all those contracts anymore.

Ultimately unless you find that magical buyer who doesn't want to use an agent and trusts you to provide everything needed for a smooth close you will be paying a commission to someone. It may not be 5-6% but it will be 2-3% because buyers are not out here paying agents and it will fall to the seller. Buyers can barely afford the house and down payment and an agent will advise them that you stand to make a profit on the sale and could put up a commission. And even though agents are supposed to show their clients any house, the odds of them directing someone to you if there is no commission involved is just about 0%. They will know you are not a professional, they will have to do all the docs and coordination, and they won't expect you to be easy in negotiations. None of this may be true, but they won't take that chance and they won't put their clients in a situation where issues could come up.

On the money side I just got a FSBO home listed at 389k under contract for 375k. It appraised at 396k. I didn't even need the inspection report to get the deal under contract at the price I wanted. With an agent advising them the sellers probably list at 399k and go under contract at 394k with no closing costs.

Furthermore a good listing agent will become a good buying agent for your future RE investment journey. They will have access to deals and their job is to real estate full time. You should start building this relationship now because spending a few thousand on an agent will pay dividends in the future. Just negotiate a 4 or 5% commission up front if it's that big of a deal.

Started buying property in 2015, got my license in 2022, wish I had gotten it sooner. Being an agent is a path to make real estate your career, not just your investment vehicle. If you don't already make a lot of money it can help you make the money you need to invest. Also helps you build your network by interacting with buyers and sellers on a regular basis. 

Looking for some outside opinions on my next move. 

Currently own 4 SFH and 4 condos. We operate Short and Midterm rentals with strong rent rolls and little vacancy with decent cashflow. Some units bring in $700/month after expenses and others bring in $300 depending on the location. Me and my wife both work W-2s still and it is a lot to manage with 2 small children in the mix. Also the increase in value over the last few years has put us in a position of $700k+ in equity. There is a 9 unit property on the market that we could acquire if we sold half or all of the current portfolio. Economy of scale would help the overall monthly cash flow on a multi. It's in a great location with future appreciation. The downsides are that it is in a lower lying area and could be in a flood zone so insurance might be much higher. It is attached to another townhome complex and it is unclear if the HOA applies to this building or not. Details are scarce until under contract. Property sold at 900k a few years ago and is back up for 1.7M now with upgrades and a rent roll of $10,000/month on long term leases. We could double the monthly income with our STR and MTR strategies and focus our efforts into one building. We have been looking to move into small multi and starting with a 4 unit but this option hit the market recently and we are considering going big now.

If I sold the 4 SFH I could do an 80/20 mortgage with my local lender and break even until I can cycle some units out of long term renters.

If I sold everything I could do a 60/40 and profit a few thousand a month with the long term and even more when I switch to STR/MTR.

 You should be avoiding deprec recap and taxes by 1031 exchanging into a better property/properties that provide more cash flow and can restart the cycle of deprec and apprec. I don't think one single strategy is a plan for life, fun to run numbers but each journey is different and each market provides different returns. Property and stocks should be a mixed part of the portfolio. When stocks are down the property can cash flow. When stocks are great the property is most likely also appreciating. Picking one over the other is against the point of this entire site. It's about informed investing over an extended period of time and minimizing risk while building up the reward. Having a company increase the value of your stock and a tenant pay off your mortgage are both wins. The main issue is the government will forever print money and devalue all cash, so put it somewhere it can grow. 

It is strongly recommend by most to have a plan or target property in mind before you sell the property and start a 1031. Many people have gotten stuck over paying for a property they don't even like because the 1031 timeline ran out. Sounds like you would do well investing in a cash flow market in the Midwest somewhere that doesn't have much appreciation but will be a stable and reliable asset that produces returns each month. If you can afford it take the first couple years cash flow and invest it into REITS to diversify your investments. 

Best course of action is to find the new property and go under contract with the stipulation that closing will be after you sell your original property. Then you don't have to worry about the 1031 timeline and you have time to properly shop the market you choose to invest in.