All Forum Posts by: Andrew Zavage

hey David,
As a broker, I have several options if you're looking to only touch the equity in a second position lien on investment property.  Give me a buzz if you'd like to explore this scenario further.  
Thanks!
Andrew

Investment Info:

Single-family residence fix & flip investment in Pittsburgh.

Purchase price: $80,000
Cash invested: $72,900

Project complete. Waiting on permanent financing to close. The ARV value came back at $201,000 and a condition rating of C3 with a reported median rental figure of $1,595. The entirety of this project was financed by a HELOC, and at closing, we will wipe out our debt incurred to complete this project. No CF figures until we have an executed lease in-hand.

What made you interested in investing in this type of deal?

familiarity with the market, value-add, chance to make something out of nothing.

How did you find this deal and how did you negotiate it?

with my agent, knowing the numbers, and finding the correct kind of distressed situation.

How did you finance this deal?

HELOC & bridge loan thru Truly Investor Capital (if you're interested, let me know and I can broker for you or refer you!)

How did you add value to the deal?

roof replacement, all new floors, new finish plumbing, interior cosmetics, appliances, fixtures, and just knowing the area of town

What was the outcome?

so far so good!

Lessons learned? Challenges?

with a flip, a firm majority of lenders on the permanent refinance side require a minimum of 6 months of title seasoning. That severely limited the number of lenders I could go to, so I ended up finding a loan product (that costs a premium, albeit) thru Velocity Capital Mortgage that allows fully-amortizing or IO payments (for first 10 years) which will help me build cash flow and accrue title seasoning while I find the right time to pull the trigger on a fully-amortizing DSCR product

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Myself =D
Christian Petrozza, Realtor
Nulf Management Services, a PA-licensed GC

looks good! roof looks solid, saw the newer HVAC compressor, and the landscaping seems like it won't be a huge burden.  

Quote from @Joseph Beatty:

Andrew, did your rehab #'s shake out as expected? Also, being out of state, was it difficult getting a team together to get this project done? Seems like everything came together pretty well for you! 

Hey Joseph! Thanks for asking.

I am fortunate - but to make the story short, I had a GC in place already (they are also my Property Manager) and I've known the owner for over 10 years

So far the numbers have been favorable and we are looking forward to wrapping up shortly.  Once i have my permanent financing completed, then I'll confirm that it's gone well =D  

I lived in this market for 7 years while I did my schooling(undergraduate and graduate) and have family and friends  (as well as business partners) in the area.  I go back to visit and put eyes on properties usually once a year. I talk with some of these connections on a weekly basis in discord, so just listening to them, I'm able to draw inferences and learn about trends in sub-markets in western PA.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $80,000
Cash invested: $72,900

We have less than 2 weeks left in our fix and hold project in Pittsburgh, PA. The seller was a foreign landlord who was behind on a few years of taxes, and the property was in C5 condition at the time of initial appraisal. The ARV value came back at $201,000 and a condition rating of C3 with a reported median rental figure of $1,595. The entirety of this project was financed by a HELOC, and at closing, we will wipe out our debt incurred to complete this project. CF #s to follow.

What made you interested in investing in this type of deal?

Adding additional assets, a familiar market, buying a house "for free" as I call it, and gaining experience with lower level of risk

How did you find this deal and how did you negotiate it?

MLS, knowing my numbers, knowing the market, studying the listing, and having a team in place.

How did you finance this deal?

HELOC

How did you add value to the deal?

renovation including a roof replacement

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a mortgage broker and out-of-state real estate agent, I had one agent on-site and a GC/PM on-site too.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $80,000
Cash invested: $72,900

We have less than 2 weeks left in our fix and hold project in Pittsburgh, PA. The seller was a foreign landlord who was behind on a few years of taxes, and the property was in C5 condition at the time of initial appraisal. The ARV value came back at $201,000 and a condition rating of C3 with a reported median rental figure of $1,595. The entirety of this project was financed by a HELOC, and at closing, we will wipe out our debt incurred to complete this project. No CF figures until we have an executed lease in-hand.

What made you interested in investing in this type of deal?

Adding additional assets, a familiar market, buying a house "for free" as I call it, and gaining experience with lower level of risk

How did you find this deal and how did you negotiate it?

MLS, knowing my numbers, knowing the market, studying the listing, and having a team in place.

How did you finance this deal?

HELOC

How did you add value to the deal?

renovation including a roof replacement

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a mortgage broker and out-of-state real estate agent, I had one agent on-site and a GC/PM on-site too.

I no longer live in PGH but have several units there with a partner.  They also happen to run a KW brokerage and a PM company.  If you'd like any more information, please message me.  

Hi Bill, There was a good article about the residential acquisition volume in the post gazette last year or two years ago. RE360 took the top spot with $1MM+ in acquisitions. PPM may have been up there on the list too. I believe they recently did a rehab project in Allentown and they definitely have laid claim to where my primary base in the South Side is. Joe is definitely on the move and probably has some wisdom to impart, i would shoot him a linkedin invite and see what he says.

Members of BP,

I'm hoping someone with a previous similar experience or legal education can contribute to this question:

I bought a property in April of 2014. recently (in the past 3 months), I was contacted by the borough/municipality regarding taxes that were owed on the property before it was to be sold to me. I have since paid all the taxes to ensure there are no future liens filed against the property. However, in my HUD-1 statement, there is a $200 charge for "tax cert/lien ltrs", which i assume is shorthand for tax certification and lien letter research. My question is, shouldn't these delinquent taxes, although not composing a lien yet, have been discovered prior to closing? The law firm that has been doing my settlements has been good to me, but I think they dropped the ball on this and I should recoup some of these costs on account of their lack of due diligence. I could be wrong, but would love advice.

thank you!