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All Forum Posts by: Alex Jeffrey Steady

Alex Jeffrey Steady has started 6 posts and replied 22 times.

Post: First deal thinking about owner financing to buy. I need help!

Alex Jeffrey SteadyPosted
  • Looking for my first flip!
  • Lynchburg, VA
  • Posts 23
  • Votes 0

Hello BP World,

I'm going to attempt to get my first property under contract this week! The owner has multiple properties shes trying to get rid of. Shes an older lady and is struggling to deal with the properties paying the taxes or even keep them in good shape or rented. Shes taking care of her mother and needs her problem solved. She told me she owes $38,000 she purchased in 03 for $78k so her dad would have a place to live. She owes $1703.85 in backed taxes. The home is currently SFR but is zoned as r-3 multi. The goal is to convert this to a duplex, it should be pretty easy. I need to split the electric to two meters and it has dual zone heatpump/ac already, also I need a kitchen and washer/dryer hookups. I'm pretty sure I need a second egress point aka an exterior set of stairs. I mentioned taking over her mortgage and she seemed ok with that idea however I have a 1099 job and financing is a pain for now. A subject two seems like a bad idea first starting out and I don't want to get screwed. I like the idea of owner financing because I know she'd take very fair terms. I was thinking about 10 years with a pay in full clause for maybe $40k at 4% and I think she would work with $500.00 down. Zillow says it's worth $108k and the city says it's worth $122,800 also it's 1712 SF. I know that I can get $575 for a 2-1 through section 8 for each unit and it should cost around $15,000 or less to fix up this property, it is in good shape for being vacant. I've walked the property with someone whose flipped over 100+ homes. She believes that $40k would equal a great flip, but I believe buy and hold makes more sense for this property.

Honestly I'm looking for a walk through on how to do the deal for owner financing and I can get the money to convert this to a duplex from a partner of mine. Sorry this is so very detailed I'm just excited and freaking out.

Thanks Team!

Alex 

Post: Lynchburg Roanoke Professionals wanted!

Alex Jeffrey SteadyPosted
  • Looking for my first flip!
  • Lynchburg, VA
  • Posts 23
  • Votes 0

Christian,

I'll wait to hear from you on that I appreciate it! It was a pleasure to meet you and your wife lastnight. David you and I need to have a meetup soon to game plan if your interested I'm setting up a meeting with Yesh on Wednesday and will let you know what I find.

Alex

Post: Lynchburg Roanoke Professionals wanted!

Alex Jeffrey SteadyPosted
  • Looking for my first flip!
  • Lynchburg, VA
  • Posts 23
  • Votes 0

Hello BP World,

I'm just starting out in RE and need to build a team. I need a lawyer that works with Investors that maybe has some property themselves. A CPA that knows the ins and outs when it comes to working for investors. And a good tittle and settelment firm. Preferably in Lynchburg Virginia. I'm assuming I need more people to add to the team. I know and have worked with good contractors locally for years so that I'm not to worried about finding them. It's the rest of the team I'm worried about finding. The goal is to get financing lined up then do a few flips and wholesales to then afford buy and hold SFR and up to 4 plex for now. Any ideas or references would be great!

Thanks,

        Alex

Post: Long time AK investor making magic happen!

Alex Jeffrey SteadyPosted
  • Looking for my first flip!
  • Lynchburg, VA
  • Posts 23
  • Votes 0

@Kevin C. Welcome to BP Kevin! This is a great site for networking and learning new things every day! I love the podcasts and listen to at least two a day! I'm a newbie and am working on finding the right deal to start out my portfolio with. May I ask what was your first deal like and what did you learn from it? Positives and negatives?

Post: Hello BiggerPockets World

Alex Jeffrey SteadyPosted
  • Looking for my first flip!
  • Lynchburg, VA
  • Posts 23
  • Votes 0
Originally posted by @Derreck Wells:
Originally posted by @Alex Jeffrey Steady:
Originally posted by @Derreck Wells:
Originally posted by @Alex Jeffrey Steady:

Nice to hear from a fellow local! Is your specialty paint removal? If so what are your thoughts on lead paint?

 Hi Alex.

   I'm into lead paint removal up here in MA. Any questions I can answer for you?

Derreck

 Derreck,

Alot of the properties I'm looking at down here are pre 1978 and I know that I can either cover with paint or have it professionaly removed. But if its already pealing can I scrap exterior paint myself or is that going to violate EPA regs?

Thanks so much for your response!

First I want to say that I'm versed in MA lead laws, so you need to verify with your state laws that what I'm saying applies down there too. There are EPA rules and State laws that need to be adhered to. 

You can't really "just cover with paint" and be good. Outside corners, baseboards, windows. doors, shelves, shelf supports, built in cabinets, etc. all have different rules. By outside corners, I don't mean the exterior of the house, though there are different rules for the exterior.

The laws basically state that if you are renovating, not deleading, its okay for you to deal with the paint yourself, however, you still need to follow the EPA  RRP rules. For example, let's say you want to replace the windows with vinyl windows, but the old ones have lead paint on them. You can do it because you're replacing the windows because they're old and useless, you're not replacing them with the intent of passing a lead inspection. Same goes for painting. You're painting because the paint is peeling, not to try to pass a lead inspection and get a lead cert. 

The different rules for different components in your house pretty much guarantee that a homeowner that isn't trained will fail the inspection if they try to delead themselves. Then there's evidence of "unauthorized deleading" (UD) and the property gets flagged for life. You don't want that. If it's you that did the work, there's big fines involved. If the work was done prior to you buying the house, there's additional paperwork that you have to go through to get a lead cert. 

Here's a link to the EPA site about lead paint. There is a section for "do-it-yourselfers", but I suspect this will not apply to you as you're planning on renting out the properties. If you're planning on working on the units yourself, I'd consider yourself a "property manager" as you're doing the work for profit.  EPA Lead Rules

Here's a link to VA lead paint info... VA Lead Paint

The site backs up what I mentioned about renovating vs deleading... 

"Permanent Removal of Lead-Based Paint Hazards or Lead Abatement

If the main purpose of the project is to make the house lead-safe, and not just as part of an overall renovation project, then you should use a licensed lead abatement firm. Virginia law (CVA 54.1, Chapter 5) requires lead contractors and certain individuals to be licensed before conducting activities that disturb lead based paint."

It also mentions "certain individuals", so potentially as a property manager, you may need to licensed. I didn't read through the entire page, but you definitely should!

Let me know if you have any more questions and I'll do my best to answer them.

Derreck

 Derrick,

Thank you so much for taking the time to answer my questions! I will read through the links you posted and will educate myself further. I will definitively find out the deal with property managers and lead licensing also. That one seems like a biggy for me!

Thanks again,

     Alex

Post: Hello BiggerPockets World

Alex Jeffrey SteadyPosted
  • Looking for my first flip!
  • Lynchburg, VA
  • Posts 23
  • Votes 0
Originally posted by @Derreck Wells:
Originally posted by @Alex Jeffrey Steady:

Nice to hear from a fellow local! Is your specialty paint removal? If so what are your thoughts on lead paint?

 Hi Alex.

   I'm into lead paint removal up here in MA. Any questions I can answer for you?

Derreck

 Derreck,

Alot of the properties I'm looking at down here are pre 1978 and I know that I can either cover with paint or have it professionaly removed. But if its already pealing can I scrap exterior paint myself or is that going to violate EPA regs?

Thanks so much for your response!

Post: Hello BiggerPockets World

Alex Jeffrey SteadyPosted
  • Looking for my first flip!
  • Lynchburg, VA
  • Posts 23
  • Votes 0
Originally posted by @Kodi Rath:

no sir, I do paintless dent removal on vehicles, not sure about anything with lead paint. I am just looking to get started in real estate as well

 Well kodi let me know what kinda properties your looking for price range size location you perfeer and if I come across a genuine deal that I can't handle atm I'd love to help you out!

Post: Hello BiggerPockets World

Alex Jeffrey SteadyPosted
  • Looking for my first flip!
  • Lynchburg, VA
  • Posts 23
  • Votes 0
Originally posted by @Jeffrey Borstell:

Alex. I save 50% of my after tax money and put it into an account that is strickly for buying property. I also tried to show as much income on my taxes as possible so I could get the loans I wanted. Also the Multis I buy cash flow well and are not considered a debt in the banks eyes when it comes to buying my next property (so make sure the numbers work well on each property )

 Jeffery, thanks for the tip now are your doing 1031s and put the funds into a form of escrow account?

On the multis is that current cash flow with cutrent occupancy or projected cash flow once rented?

Post: Hello BiggerPockets World

Alex Jeffrey SteadyPosted
  • Looking for my first flip!
  • Lynchburg, VA
  • Posts 23
  • Votes 0
Originally posted by @Kodi Rath:

smith mountain lake... Nice that's where you'll find me every weekend 😎

Good to see another new guy trying to get involved in lynchburg/roanoke area! 

Good luck! 

 Kodi,

Nice to hear from a fellow local! Is your specialty paint removal? If so what are your thoughts on lead paint?

Post: Hello BiggerPockets World

Alex Jeffrey SteadyPosted
  • Looking for my first flip!
  • Lynchburg, VA
  • Posts 23
  • Votes 0
Originally posted by @Jeffrey Borstell:

It certainly isn't too late. I'm 28 at as well and just grabbed my first 7 units this year. 

The thing that has helped me the most is a mentor. I would find a seasoned vet in the area that can help you get started.

Best of luck

 Jeffery,

I totally agree on finding a mentor that's seasoned in this area, I know the only forward is together with a guide. Also 7 units a year is awesome any secrets to your success or tips?

Regards,

     Alex Steady