All Forum Posts by: Jahan Habib

 Excellent thank you.

@Patrick Wheeler That's great. You have a great situation right now. My biggest deterrent for flipping houses is the time require. It looks like you have been able to deal with this matter very nicely.

@Patrick Wheeler Amazing stuff Patrick. I really appreciate the detailed reno cost breakdown as well as the photo. Until this summer, I was living in Boston, so I am following this thread with great interest.

I have not done a flip yet. Renovated and rented my condo down in Newport RI. It took a lot of time and effort.

How much time do you spend on this project on a weekly basis (both on and offsite)? 

@Rob Caldwell Great stuff. Do you have any plans to expand to CT or other states in 2018? 

@Nataly D. Unfortunately, I don't remember the person I spoke with at Bay State. If the name exists, it was probably scribbled in my notebook somewhere.

All the best with the deal!

@Sam Shueh Great insights! I agree with your comments.

@Nataly D. Bay State is solid.

I have gone to those NACA workshops. The program is legitimate, however they are very slow in processing. My main concern with NACA is that most sellers don't want their property tied up under contract while the mortgage company is taking its time processing. Most sellers want a quicker close which NACA is rarely able to achieve. Foreclosures, Short Sales, and Estate sale type scenarios work well with NACA as the selling party is willing to wait around for NACA to close the deal. Alternatively, if we enter a slower, buyers real estate market then NACA can come back into play because sellers won't have as many willing buyers and would be forced to wait for NACA.

In sum, great program, terrible delivery.

@Nataly D. I considered using this type of property about two years ago. Spoke with Bay State and NACA. Both were willing to finance the acquisition. I ended up passing on the deal because both required me to be an owner occupant and my plans had changed so I had to pass on the deal.

The income based deed restriction for tenants should not be a huge deal as long as you are owner occupying one of the units. 

This is not intended to be a doom and gloom thread about any potential economic downturn some time in the future, but rather discussion regarding the proper position oneself to benefit resulting from such an event.

I would imagine that the buy and hold investors would be playing 'defense' first -- meaning making sure that their tenants are able to pay the rents/that they have liquidity to service debt. After that, there is the opportunity to play 'offense' which means looking for deals at cut rate prices. For the flippers, I expect them to be trying to unload their fix and flips or convert them into rentals. If they have cash in the bank, then could seek out additional properties, however I would not expect a thriving flipping business during time of economic stress.

The paragraph above is purely hypothetical based on what I would have done. However, I know that many of you have gone through 2008 and prior economic downturns. I would be very interested in learning more about what you were able to do to not only survive but also thrive? Did you have a few hundred thousand dollars in the bank to deploy towards aggressive acquisition? How did you deal with lending drying up? General economic anxiety?

I am looking to gain some insights from the seasoned RE investors who have endured through downturns and not lost their money/business in the process.

@Nataly D. Please try the lenders listed in this link: http://www.buyworcesternow.com/ or https://www.naca.com/

Good luck with the process -- please let me know if you need any additional insights. Worcester has been on an upswing lately (as you may know).