All Forum Posts by: Charles M.

Oh I didn't realize but it reads as if its complete. The rehab is starting shortly, but I do trust these numbers as my past ones have been within +/- 10% of estimated rehab costs, and this one is estimates from Class-A contractors.

I am doing the bridge loan through family and giving them 5% returns, which is pretty good for them based on their financial goals, and its a bit less risky since its backed by my other 3 rental properties (all of which are not leveraged, except this private note). I'm trying to establish this a bit more and this is the first deal I'll be using this private money on. Its also useful for me, since other lenders that offer mortgages before the 6 month refi period are doing it at 6-8% rates. 2 of my 3 properties have been acquired within the past 6 months so having this private money is a good investment for them, and also helps me bridge that day 1 to 6 month mark.

As far as off-market, I'm trying to get my lead gen going a bit so I can pick up my own deals so I'm happy to say those methods are coming together. This one was driving for dollars, but I have a lot to work to do for digital lead gen. Pretty much need to completely overhaul my carrot site. Any recommendations for a web dev that can create a fast lead gen site with a simple UI that I can add content onto is appreciated.

I would say finding a good realtor is probably my weakness at this point. None of the stuff that I do look at on market is found by my realtor, which is extremely time consuming. I've been shopping for a new one without much luck. Richmond is nearly impossible for MLS deals, it feels like. We have such a healthy market normally and thats on top of the crazy influx of investors this year.

I started with MLS, picked up 2 off auction, and now will probably be spending most of my time with off-market deals.

My future goals are to connect with a multifamily broker to acquire some 2-4 unit rehabs. I would like to be at 15 doors by next July.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Richmond.

Purchase price: $280,000
Cash invested: $100,000

69% post rehab to ARV with 2 units rented for a total of $3,200/mo. Will pull out the costs basis of 380K to underleverage this duplex and cashflow $643/mo after vacancy, maintenance and cap ex.

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

I have 3 single family rentals and this was a good first step towards MFH.

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

Off-market. Paid asking since it was so much of a slam dunk.

How did you finance this deal?

Cash with a private bridge loan fund to pull capital out of other projects before the 6 month mark.

How did you add value to the deal?

One unit is fully gutted and vacant, and another is rented for $900/mo with a renovated rental around $1600/mo. I also am adding a bathroom in each unit.

I'm looking at a set of lots for a new development project. Most that I have considered already have road, sewer and electric ready and the lot has been cleared. The more I have looked, the more opportunities I find - each with their own unique set of hurdles I have not faced. I'm wondering if anyone has a general cost guideline for my specific situation.

The lots I'm looking at have a road up to them on the west, and after the lots I'm eligible to purchase there is one small lot (50ft wide) that doesn't have road, then it returns to the road again on the east. The road basically just doesn't continue on this city block. 

The lots for sale: 1 lot at 50 feet wide by 120 deep. The other lot for sale used to be 3 lots, but is now 1 (with the purchase plan on this to become 3 different lots) at 150 feet wide by 120 deep. 

I'm curious on what everyone's costs are on extending the road sewer and electric to these 4 lots. Costs specific to the state of Virginia are also appreciated.

Has anyone experienced something like this? What other hurdles have you had to overcome in the new construction world?

I'd also like to learn more about wholesaling. Mostly I'm looking to buy my own off-market properties for my own portfolio.

But Anyways - What part of Virginia are you in? I have not personally worked with Shawn Bowen, but he has a weekly video call and is wholesaling out of Virginia Beach so that may be a good coach to reach out to.

I signed up for the 200/mo carrot plan a couple of weeks ago. I haven't yet had any results as it does take time, but I do believe in the product. For me, I am confident I can hire someone to create a website and maintain it over time to save on money; however, I'm not willing to spend my time to do so.

@James Hamling - Was really just referring to someone to set up the back end pretty much like a carrot site. Lead form, landing page pitch etc. My old web development company would've loved you as a client!

Also @Jerryll Noorden its not $200 - Its $24,000 over 10 years versus some upfront costs and maintenance over that period. Either way, I'm still on the carrot train since it is literally one-click setup.

Path to wealth? Definitely. Path to cash? Probably not!

What neighborhoods do you find in RVA that struggle with your portfolio? I have 1 A, B & C. West End, Northside, Church Hill.

To your point about change - unfortunately, I don't feel like things change quickly enough in our country politically. I think landlords have really gotten the short end of the stick with Covid and our government will just keep kicking the can down the road. Perhaps one major change is the 1031 rule, which I would support if it wasn't just taxing the real estate industry, but major tax reforms like offshore tax sheltering etc (not just raising the tax, we're at 35% the highest in the world).

I ended up making one here - Let me know your thoughts.

I look at the % to ARV rule as an amount of time. That is a buy that is 80% ARV and takes 3 weeks in painting, flooring and minimal cosmetic updates then great I'm into it, but for those long full gut jobs then I'd definitely want to be closer to 70% if not even 60%.

I think so, too. What's Wilton like? Haha