All Forum Posts by: Jared W Smith

Hi,

I'm looking to buy a 3 unit property in NYC and to do a full gut, also there's a potential for another 1000sq to be added to the property 

and that's why i'm interested in this deal. I've never done this before so i know it's pretty crazy of me doing it in NYC for as my first but hey..

Of course i'll be having a very experienced GC to do the work and also maybe as investor.

I'm planning to purchase the property with 10% down as primary and was wondering what would be the next step regarding construction or FHA 203k

Has anyone done a flip with a construction or FHA 203k loan and whats the experience?

Also any experience, advice is highly appreciated!!

Thank You 

Quote from @Jared W Smith:

Quote from @James Carlson:

....No real such thing as co-ops out west here in Colorado. How do they operate differently than condos? ...

Completely different type of investment. Yes, you can sell it when you want. But it's far less control than a condo. For one, typically the board has to approve who ever buys it and even the tenant of sublet.   

 Huh, that sounds like a real headache. 

In the scenario you describe, it would not be you who is being robbed. You bought from the architect the right to use the plans once to get one building permit to build one house. You still have that even if a contractor 'steals' the plan, and is able to get a building permit (on a different lot.) You still got what you paid for. It would be the architect who is being robbed. The architect got one fee, allowing one contractor to build one house, but in fact two builders build two houses. The architect has twice the responsibility, twice the liability, but only one fee. You should do a google search for 'instrument of service,' which, I would assume is what you got from the architect. You did not buy a 'product.' You bought an instrument of service and the right to use the plan once. I provide my clients only the number of stamped plans they need (as dictated by the town issuing the building permit) to get one building permit. The stamped plans always have an address on them in the title block. I'm hoping a building inspector would not issue a permit using these plans for a different lot.

First, protecting your plans is crucial. Copyright helps, but it's not perfect. Make sure potential builders sign a non-disclosure agreement (NDA) before showing them your plans. This legally keeps things confidential. You can also remove personal details from the plans to reduce the risk of someone copying your project.Now, about the budget. Be open with your current builder about the rising costs. Understand why it's happening and see if you can negotiate. If you're checking out another builder, make sure they're qualified and licensed in Texas. Compare their quotes not just on price but also on experience, timeline, and references. Use NDAs to protect your plans, talk openly with your current builder about costs, and consider more than just price when choosing a builder.

@Jackie Mcmorrow

@Account Closed

This is interesting. No real such thing as co-ops out west here in Colorado. How do they operate differently than condos? I would have thought if you can buy a co-op, and you can later sell it, that it would be basically the same type of investment as a condo. But no?

Quote from @Jackie Mcmorrow:

Hi BiggerPockets Family,

I’m trying to start my real estate investment journey through the purchase of my primary residence, with the intention of selling it in less than 5 years. I was open to condos and co-ops but after more research am stuck. 
Are co-ops even technically an investment (considering you don’t own the actual space)? Should only look at condos if I really want a taste for the investment world? (Late this year/ early next I want to start building a portfolio of out of state, long term rental properties). Can anyone share their thoughts? 

(Where I live/ work, I can only afford an apartment so don’t have the opportunity to house hack with a multi family)

Thanks in advance! 
Jackie 

In general, condos are often seen as a better investment option compared to co-ops because with a condo, you own your specific unit and can have more control over its value and potential for appreciation. Co-ops, on the other hand, involve owning shares in a corporation that owns the building and can come with more restrictions and limitations on how you can use or rent out your unit.

If your goal is to dip your toes into real estate investing as a primary residence before building a portfolio of out-of-state rental properties, it may be a better idea to consider a condo over a co-op. This way, you can potentially build equity over time and have more flexibility in renting out your unit in the future.

Ultimately, it's important to do thorough research and consider your long-term investment goals before making a decision on whether to choose a condo or a co-op for your primary residence.