All Forum Posts by: David Jacques

typically we try to have permits in hand before purchasing the property to mitigate some risk but it doesn't sound like your land cost is too burdensome.

0 Votes

you should know whether you are going to sell or hold the property (barring something catastrophic happening) before you pull permits

0 Votes

it's not that they are neglected... it's more that generally the places that would afford a developer to build and sell entry level homes and remain solvent typically puts you in places that most people don't want to live.

0 Votes

holy smokes this has the potential to cost your buyers a lot of money if this isn't done properly. Your contract should be contingent through obtaining all building permits to help mitigate their risk.

The builder should know other contractors for the aspects of the job that they don't want to do. If not I would find another builder.

0 Votes

Originally posted by @Michelle Elsaid:

Hi everyone,

I want to "house hack" my way into investment properties by buying a duplex, living in one side and renting out the other.

I'm searching the MLS and most of the time there are already renters in place with lease agreements. Since this will be a owner occupied mortgage - I would obviously need to live in one. So, I have two questions:

1. Do I have to honor the lease agreement with previous owner and current tenant?

If not, does anyone have experience asking them to vacate early on lease? Seems tricky.

2. Are sellers LIKELY to sell and terminate lease - since it will likely bring more hardship for them in closing, getting rid of tenants before closing, etc.?

3. If seller is willing to work with me, what would be time frame required of tenant to leave?

I know other things come into play, like how many other buyers are making offers, how long its been on market, but looking for some thoughts!

Thanks!

Michelle

1. Typically yes. Without any other arrangement in place, their lease should supersede your purchase.

2. Sellers can't just terminate a lease without cause. That is what a lease is for. You may be able to negotiate cash for keys or they may want to leave anyway.

1 Vote

call up any real estate office and ask for the newest full time agent

2 Votes

20% interest (assuming that's annual) paid back in 3 days is $8 on a $5,000 loan. I would make sure that your investor friend intends to pay a 20% return (i.e. $1,000 to borrow your $5,000) and not the previous.

0 Votes

Originally posted by @Kevin Burns:

I'm looking to wholesale a property that is in real bad shape, built in the 1900's. Honestly, I think the only way to market this is as a pop-top, expanding the house into a full scale construction adding bedrooms, bathrooms, living space, the whole nine yards. Based on the comps I just don't see a general flip/remodel will leave enough profit, needing everything from new electrical, plumbing, cosmetic and all. What is the best way to assess the value of the land itself, seeing as the house is basically worthless except maybe it's foundation and basic frame?

Land value is determined (in simple fashion) by the following:

Final All in Sales Price for a Finished Home

- Desired Profit

- Selling Costs

- Construction Costs

- Development Costs

- Soft/ Engineering/ Arch Costs

- Carry Costs

- Acquisition Costs

= Land Purchase Price

Put two developers in the same room evaluating the same property and the offer price can vary wildly, which is why land "value" is so subjective.

1 Vote

Originally posted by @Mike S.:

@Manolo D.

Would you happen to know if you can subdivide land up with existing structures in place? There is a property I am considering putting under contract. Here is the scenario BP community, please chime in with your thoughts:

1) 1 tax number, 2 sfrs on the lot, both 2 bed 1 bath, with a 3rd garage converted into a bed.

2) Not in great condition but is rentable.

3) On a large lot where the surrounding lots are newer multi-unit builds.

4) Owner says 6 units can be build on there.

Questions:

1) Can the 2 SFRs be divided into separate parcels? If so, what is needed to be done and costs involved?

2) Can we subdivide and leave the rest of the lot open for development and say, build 4 multiunits on there? Owner may consider carrying, but does not want to if structures are demo'ed.

Short answer is there is no way we can answer your questions without a lot more information. Your best bet is to start with your county planning and zoning office and see what is allowed for that property. If you have density available by right (i.e. you do not need to rezone), then you are in a much better position than if you have to rezone a property (if even allowed) to accommodate your plan.

A rezoning can take years to get approved. Even by right, in MD you're still looking at 18-24+ months to get a subdivision approved and engineered.

Owner financing is almost necessitated in this instance; or at the very least tie it up with a deposit and close when the approvals are completed.

0 Votes

Originally posted by @Kris Haskins:

hey noah, we all hv different training. as for me, my bs is in audio recording... but its very rare to find re development in a school. id bet u could intern or get a job w a local developer and tell him ur goals. he may help u. i hv a friend that paid a builder $3k to assist him in getting started so i know some r willing to help others. but remember their time is valuable.. ur gonna b great!!!

That's not really accurate. Many universities offer real estate B.S. degrees and/or concentrations for undergrad and master's degrees in development. I finished the M.S. program at Hopkins a few years ago.

0 Votes

All Forum Posts by: David Jacques

David Jacques has started 3 posts and replied 90 times.

Post: Spec home builders

Post: Spec home builders

Post: Case for Becoming a Home Builder / Land Developer

Post: How to make sure land is build able

Post: House Hack - Already have tenants?

Post: Realtors who work with Investors

Post: "Bridge loan" ?

Post: Land Value Assessment

Post: Land Value Assessment

Post: Wanting to start out