Hello from multifamily professional in DC area

[Brendan Majev]

Hi everyone, my name is Brendan and I have been working the the multifamily sector for the past 5 years as an acquisitions officer. My hobbies include yelling at the TV while watching sports and popping bubble wrap. I have worked for all five years with the same company, which is called CAPREIT. The company invests with JV equity partners in multifamily projects across the United States, but focuses on institutional properties in the Midwest, Southeast, and Mid-Atlantic regions.

I aspire to own several (much) smaller properties with my own money, on the side, including the purchase of my first home. I am looking, specifically, at using the 203(k) loan program through FHA for my first home purchase, and I am doing research as to what exactly that process would entail, or whether there might be a better option for rehabbing my own first purchase, post-closing.

I live in the Maryland suburbs of Washington, DC, and am originally a native of Baltimore, MD. I look forward to exchanging ideas with each of you -- please do not hesitate to reach out to me if I can be of assistance. Thanks!

[Russell Brazil]

Originally posted by @John Reuther:

Obviously cash offers will win.  But the competition between remaining products must depend on the market.  I guess its a completely different market in MD. They do work very well, as I have experienced personally. 

The pecking will be the same anywhere. That is not a market specific thing. What is market specific is the liquidity in the market. If a property only receIves one offer then that is who would get the property (after negotiating the price). However an FHA/VA loan will always be subordinated to a conventional loan due to the extra costs that come with accepting a va/fha loan like possible termite treatment and lender required repairs. Rehab loans go to the bottom of the pile due to the time length to close being double the length of a conventional loan.

Where markets have a lot of liquidity the pecking order will come into play quite a bit. Where markets have less liquidity you take the one offer available.