All Forum Posts by: Bobby Akines

@Tony Sepassi,

One quick, note, for large developments, you don't need to worry about those going to rentals from condos if the condos aren't selling well. The way that the financing is structured is heavily dependent on the type of product you plan to build, as the way we calculate cash flows is very different for each. So it is very difficult to switch the program once you've chosen a given path. Typically this decision can be changed before the finalization of the construction loan, but after that point I'm not sure how feasible it would be. I could be mistaken, but I haven't heard of this happening, at least not in the DC area. Some one feel free to correct me if I'm wrong!

To second what @Robert Williams said, the demand is really based on the expected demographics, and in DC we won't see the end of the need for both for sale and for rental in the near future. And I agree that looking near public transport is a key, with the idea being that millenials, a big market of buyers and renters now in DC, are looking to live in walkable neighborhoods. And this is compounded by what seem to be increasingly anti-car policies by DMPED to approve projects with lower and lower parking requirements, some evening going so far as to say the DC gov. is on a crusade against cars.

Thanks for the advice @Paul Timmins I have already gotten on the invite for a DC BP meet up, and and looking for other ways to get involved. And thanks for the tip on HUD properties, I'll have to look into that more.

Thanks J. Martin! Appreciate the information and best of luck to you!

Thanks, @Robert Williams I will definitely have to look into some of the marketing strategies you mentioned. I guess I'd like to find a way to target the types of sellers that are the most motivated to sell at a good value. People sell for all kinds of reasons, but there should be some rhyme or reason to a specific type of seller that is motivated to sell his home at below the real value of the asset. My guess is these would be pre-foreclosures, absentee owners, etc. I'm assuming the first step will be to find out how to target my efforts to get the most effective results per solicitation.

Also, do you know why the information on Zillow or Trulia is so much more out of date than Redfin? What makes Redfin different than the others.

I'll definitely continue reading up on BP to get a baseline on how to find motivated sellers in the market!

Mark,

Yeah, prices here are high, but there is still a great need in many neighborhoods for the improvement of the housing stock, which presents us with good opportunities I think! Hopefully I can find a way to make it work!

Rob,

Thanks for the quick reply! Yes, if I do end up going the wholesale rout, I'll surely take you up on that offer! The good thing is that I'm currently working on budgeting for new multi-family deals ($50-$100MM) in the area, so I think I would have a good handle on the cost estimating side of the wholesale process, but one question I have for you as an agent: how do you even begin to find properties that have good value to them? In the area I'm looking at (20002/20003), it looks like ARV for homes hover around $600,000, so I'm looking to find purchase values around $365,000. That is a rough guideline to look for value add potential, but any ideas where to look for properties around this mark? Is that even realistic? Thanks!

Hello BP! I've been reading articles here for a few months now (which have been an immense help), and I've decided to finally put my hat in the ring!

My wife and I live in an up-and-coming neighborhood in NE DC, and while we are renting a small 1BD in a new multi-family development, we started out planning to build some savings to buy a new home in the next year or so.

As we've been saving for our new home, we begun talking about the idea of using that nest egg to invest in a property in our neighborhood and delaying the purchase of our own home. We love the idea of being able to make in investment that will grow our financial stability and also make our neighborhood a better place to live. Also, I'm a project manager for a developer in DC, so I already have some understanding of the state of the market for large projects and a passion for real estate, but still have so much to learn about the market for 2-4 unit deals.

We have been batting around the relative merits of flips, income properties, or wholesaling. After looking reading a few things on BP, it looks like my starting strategy will be wholesaling: it's a great way to get started with little risk while learning the market and building up some equity and then moving on to purchasing a row house close by that we could convert into 3 or 4 units. We would occupy one and rent out the others.

I really hope to use this post a launch point to connect with some experienced investors and developers in the area. I'll follow up to update on how my process comes along! Look forward to meeting the community!