All Forum Posts by: Dan V.

We are currently under contract for an industrial land in Norfolk, VA which we are planning to develop into a truck parking. We are looking for a loan of around $200K for land acquisition and $200K-250K for development. Looking for lender who is interested in financing this type of deal. More information and analysis will be provided upon request. Thank you!

Probably too small for any lender/bank. Try to ask the seller if willing to do seller financing with a little downpayment. In-fill will also need funds so make sure you have plans on how to make that happen. Good luck!

I was the other way around on the most recent properties we had. We bought them with the intention of flipping them, now that the market is turning, it sat on the market for a few weeks, and we decided to re-run the numbers as buy and hold. Well, we got almost all our initial investments back, and still cash flowing well. Totally agree with you about being open-minded and considering other options based on the given situation. Congratulations!

 

We actually bought 2 properties next to each other, one has fire damage and this one got affected as well. Both were in really bad shape, we should have just torn them down. We're all in about $185K for each house, just imagine the rehab that we have to do and holding costs. Bank will give us 75% LTV for the refi. I will post the 2nd property when rented.

 Thanks! $250K

Thank you! That's one thing I love about REI, it has multiple exit strategies and I'm glad it still works out for us with whatever the current market condition.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $45,000
Cash invested: $44,000

Longest project so far. We have to replace everything except the framing and reconfigure the floor plan to make it more open and functional. Got caught with the rising interest rate and has been sitting in the market for weeks so we decided to hold it. Closing on the refi in few days and will get initial investments back.

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

Got it cheap and lots of potential

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

Wholesaler

How did you finance this deal?

Hard money lender and cash

How did you add value to the deal?

The only original part of the house the framing so we replaced almost 95% of the house. We also reconfigured the floor layout to make it more functional and open.

What was the outcome?

Longest project so far, took us 16 months to finish it. Listed on the market for sale but not getting offers. We looked at the rent and will be ideal for BRRRR so we decided to hold it. Found a bank to refinance it so we will be getting our initial investments back.

Lessons learned? Challenges?

The property is no longer conforming with the current city code. We have to go thru a CUP process which took months to be approved. We also have challenges finding contractors due to the scope of work.

I invest in MHP and so far it's doing well. I'm just curious why you decided to convert it to multifamily instead of improving it? Do you have any more trailers left, if you do, maybe you rent them while building new homes? Or probably try to convert the duplexes into fourplex (2bed 1bath)? 

@Account Closed Thank you for your insights! It seems like subdividing it into 3 smaller spaces will get us more rent and will benefit the tenants as well since they will be sharing the common expenses. At my stage, I don't mind managing 3 tenants, industrial/commercial spaces are easier to manage anyways. :) 

Thank you for your input. What are the terms like (NNN, Gross, etc)? Also, what's the going rate now for spaces like that? I'm seeing around $6.00 for NNN and $1.25-$1.50 for operating expenses in that city. I may reach out to you once we have it under contract to help us find tenant(s).