All Forum Posts by: Christopher Veljkovic

@Riley Moore I believe the ARV is determined by the comps sold within your area in the last few months to most recent. The 203 appraiser will have all those comps prior. Not sure if it made a difference but I gave my realtor a bunch of printed comps to hand to the appraiser because I was not able to be there.

@Tony Nardini so if the contractor estimate is $25K, would the 10-15% contingency be automatically financed into the loan?  

Hello BP community Need a Referral in a around Glassboro, NJ.

I am looking for anyone whom can refer a realtor that can help a friend find a multi -family around Rowan University.  My friend is going to medical school there and is looking to minimize his cost by purchasing a 2-4 unit.  He is not familiar with the area as for as crime rates, good vs. bad neighborhoods, or if there is a market for college/medical students?   But that's why I am reaching out for any referrals.

Thanks BP family!

@Riley Moore there are 2 types of 203k loans, the first one is a loan up to 35K$ and the other is a FULL construction loan.  I am in the process of utilizing the first one which is the smaller version, which after all the fees, permits and MISC it comes out to 29.5K$ (if you utilize the full amount).  Now I too am a DIYer, however, my suggestion is to utilize either loan to take care of the big capital expenditures to have that out of the way for the next 15-30 years such as the roof, HVAC, upgrading electrical panels to separate utilities, etc.  That's of coarse if the home calls for repairs as such.  The problem is that when you apply for the 203K you must have a contractor bid on the jobs that is going to be financed through the 203K and you cannot do those jobs yourself because the bank will not allow it.  But that's not to say you cannot work on the home.  You just cannot get money from the loan to finance your DIY project.

I AM NO EXPERT but I am going through this process as I am writing this and my advice and experience so far is that this program is a great stepping stone to begin my journey into my real estate investing, as long as you are patient and organized throughout this process.  My obstacle was getting contractor to bid on these types of jobs because they scope of work/estimate has to have the labor and material separate and itemized, which, contractor are not accustomed too.  The contractors that do these types of jobs are pushy because they know that there are not to many contractor out there and that are willing to go through 203K process.  So be aware of these contractors. 

My second advice is to find a loan officer who deals with these types of loans because they can help and guide you through the process and steer you when things get overwhelming or confusing.  But organization is the KEY!! 

Last thing is to be aware of the UFMIP (up front mortgage insurance premium). That one took me by surprise and I'm sucking it up and taking that into account with the numbers now.

Good luck!  any referrals needed  just PM and I can send you my contacts. 

Tell him I sent you

Francisco Patawaran in Wayne NJ. He great specializing in real estate. Francisco Patawaran Accountant FCP & Associates, LLC Tax Prepartion and Consulting

@Matt R. thank you for the time to write down your experience in detail!  Everyone of them I’m taking into consideration. 

I thought I would be using those platforms as well. I came across Postlets which I think is the one I’m going with. Also I am an amateur photographer with pretty good equipment so I will be doing my own pictures. Just gotta YouTube the know how specifics of the window shots.

I like the idea of a website but not sure if is something I can consider at this time. Maybe later. 

I think your verbage on the appliance portion is great and I’m using that. You never know what people would/could complain about and bring you to court over. Also the part to waive the right to a jury trial. Not sure what that means but that’s sound great. Maybe to intimidating to the applicant. Gotta do the research on that but I Like It!!  

Matt thanks again. Your experiences are invaluable and I appreciate you for them!  

Alpesh Parmar I would take your advice under normal conditions but I don’t believe that would work on these sellers. I’ll keep that in mind for any future interactions in situations like this particular one. Thanks for the input.

@Devin Scott  awsome!  That’s great you are willing to out of state invest!  NJ is tough and if you have the know how and where,  then your already at the advantage!  Good luck!  I know some new investors here in N.J. that are looking into that option but unsure of the process. Good luck with your endeavor!! Although I think luck has very little to do with! 

@Michael S. that’s awsome that BP made it to the Philippines!

@Zack Aguilera As of now that it is going into the policy binder (with circumstance of coarse!).  This particular tenant has great track record.  But you are correct.  Maybe the next time or if the owners just put a body in there that could be the bane of my existence for that time being.  Not willing to take that chance.

@Ben G.  Sorry to hear that.  Hopefully things will smooth out with your situation during the lease agreement.  But thats exactly what I can't afford or deal with.  

@Ryan Evans I'm calling up the attorney tomorrow after I write the email tonight see if I can have the home owners keep the apartment vacant upon closing.  Good call!  Also, my father is going through that situation right now in one of his units as we speak. Tenant left everything behind after few months of court and a court order.  Man what a MESS!

Thanks Guys for the input!!