All Forum Posts by: Benjamin Seibert

@Don Konipol thank you for your feedback. I was putting this out there for people who possibly hadn't thought of it before, not necessarily you. I do agree it's not a mind blowing new strategy, but it is a different start than most take. However, it looks like you've been around and on BiggerPockets for a while, so I doubt much would be news to you.

Also, not sure what area you are from, but in my area it wasn't easy finding a lender to loan on a vacant piece of land. As you move more into the city of Baltimore this becomes non-existent, so it's all relative. After finding a potential lender, some of the ways I had to work on constructing the loan with them definitely turned into out of the box solutions (since they had stringent policies - which would've been answered had the question been posed). 

I recently finished my first non-owner occupied rental property investment deal in Hagerstown, MD (I will post about that later). I just wanted to follow-up with a strategy I used to pull equity out of a vacant lot I own. 

Graduating from college, I had high hopes to get into real estate investing. After analyzing a ton of deals I quickly realized I didn't have the cash for a down payment (like a lot of new investors). However, I did have a vacant lot ~1.1 acres in a nearby town. I went into search mode to find a bank that would lend to me on the vacant lot I owned free and clear. This ended up being harder than I thought and only found two banks (out of the dozen or so I contacted) that would lend on this. The best gave me 60% LTV on the lot which I used for the down payment and rehab costs (currently sitting in escrow) for my rental property. I hope to then BRRR my current deal and use the funds on another property down the road.

I figured I'd share a potentially unusual way around the lack of liquidity which plagues many new investors. Let me know if you have any questions about it.

Yea, as it has been mentioned before. You really just need to analyze a lot properties in a market to be able to quickly tell what's a good deal and what isn't. A spreadsheet definitely makes it quick, just make sure you have the correct numbers in for taxes, utilities, insurance, vacancy and management (as these can vary from location to locations). Practice makes perfect.

@Sean Beksinski I was in your shoes a couple years ago. I would save up funds and continue to learn. While you're saving up and learning, it would be good to network with as many people as possible (in your local area and the area you would like to move and live).

I currently use a property manager for everything. I would search around first to make sure they're the best in your area (getting referrals from other people etc...). As long as you do your due diligence and stay up to date on your property then having a property manager can be really beneficial.

Not in horrible shape. A couple areas have lighter paint from covering chips. For the most part it is not chipping and in good shape though.

Exterior isn't too bad at all. A couple small areas on the front that were painted with a lighter color (almost the same though). Not really much chipping or wear other than that.

@Jamie Rose thank you for the advice! I will probably end up painting it. I definitely think that would help with the appraisal.

I recently purchased a side by side brick duplex. I was wondering if people had any tips about some things I should do to improve the ARV of the property before I look to refinance (months down the road)? I've heard there is an appraiser in my area that will possibly only use the income approach with this but I haven't used him before (this being my second deal) so I'm not positive. I was thinking about potentially painting the exterior and fixing up some odds and ends outside (the interior will be rehabbed and both sides in good rental condition by the beginning of December).

Thank you for any advice.

Jim, it is up to you. If you have already returned the renter's security deposit then it is tough to get money back from them (unless you talk to him/her and get it from them or take him/her to court). Personally, I wouldn't worry about it unless they agreed to pay you after contacting them. Would not really be worth it to take them to court for the payment.