All Forum Posts by: Adam Davis

I have an interesting deal in Seattle city limits on the beach above Puget Sound: 1 acre with 100+ft of shoreline (city-maintained) that needs a visionary builder. This property won't comp (land is non-existent and houses are all inland, with prices at 2.3mm for old houses w/o the location), but the right builder should be able to get at least $2.7mm or greater (much greater from a new construction with legacy-quality construction). Looking for $1mm for the improved (utilities only) land, if we're doing this off-market. Current foundation needs help, so you're better off starting over.

Most likely not depending on zoning. In order to subdivide, zoning has to allow for smaller lots and residential improvements. In rural areas, zoning is usually either forest, agriculture, or recreation, and often has minimum requirements of 5-10 acres per single family house. In cities where zoning is residential, there's more flexibility, especially in places like Oregon where legislation was passed a couple years ago to allow "middle housing" in all residential zones regardless of primary zoning.

I have a pretty incredible opportunity to pick up a luxury townhouse in East Cobb, brand new construction (2022), new HOA community with pool, and an elevator connecting the 3 levels for accessibility. The house is turnkey and may include the furniture for the right price, or we'll sell it separately.

Asking $750k firm, with ARV/FMV of $850-950k. Quick close is essential (1-2 weeks) as the seller had a death in the family and needs to attend to other family needs.

If this sounds like something you'd like, send me a message, or email me at [email protected].

Hey Shelby, I got my license last week, but I've been a broker in Oregon and Washington for 5 years. I work with investors and builders, and have access to a lot of off-market properties. I'd love to help you out if you're interested. I'm not with a brokerage yet, but I expect to be tomorrow (I'm meeting with Coldwell Banker in Buckhead at 1:30). Sound good?

 David is talking about what I'm describing. Worst case: While interest may be somewhat elevated, think of it as a high price for a short time rather than something you're locked into forever. Most likely scenario is that you're able to add the improvements you're looking for and will be able to refinance into a whole-property mortgage in under a year, depending on the improvements. That means you'll only be paying that higher price for a limited time, and it may not necessarily be on the whole value. Might be a good idea to see if you can get equity financing on a small portion rather than the whole thing, to keep payments as minimal as possible.

You could potentially transfer the home and debt into a trust/LLC, and have your mother "rent" it from the company. Here's what I'd think could work:

1. Start a LLC with your Mom.

2. Buy the property with the LLC for the cost of the existing mortgage, perhaps plus the cost of the construction. I don't know if LLCs can take out DSCR loans, so you might need 25-35% down for an investment property, but I would imagine that a $745k property should be able to fetch a loan for 70% with the remaining equity applying toward down payment.

3. Build the secondary units and legalize them, then refinance with them in place. Ideally, they'll cover your new mortgage payments.

Lenders (especially creative/hard money), chime in and tell me if I'm crazy.

Hey Cheryl, what price range(s) are you looking at for your purchases? Cash or financed?

Have you thought about investing in Oregon? I have several properties that might appeal to you, and work with a real estate portfolio manager if you want to get in some larger projects and have cash to deploy.

Hi Ericka, I’d love to learn more. Can you send me a message? I’m curious what your seller-carry terms are as well.

Any progress?

You should work with an agent to get the paperwork square and make sure you don’t miss any important deadlines, but you can definitely make an offer prior to the prelim and walkthrough, and leave during the inspection period without risk if you see anything you don’t like.

If I were you, I'd offer 60% ARV, which is likely close to FMV in as-is condition ($180k). Then, you'll pay the agent (say 3% for the sake of argument, $5,400, since they'll be doing a lot of work for you on this - I'd order that prelim/TRIO with my escrow company, and help you find lien records if any, plus provide all the contractual guidance to make sure you don't lose your earnest money). That'll leave you with $114,600 to break even. It'll be tight, if the home is as crazy as it sounds. You could try to lowball at like $150k, but it sounds like she might be looking forward to a windfall now.