All Forum Posts by: Edward Howell, V

I’ve used clearview settlement solutions. 

I agree with @Hayes Merkert. For me Baltimore is a long term play. I’m invested in Union Square, and I’m starting to see both the vacants to value and the work where you live plans starting to pay off. That said progress is slow. From what I’ve learned this past year. Baltimore is a really LOCAL market. You definitely need to have boots on the ground. 

The house 3 doors down from me sold at an onsite auction for 31.5K sight unseen (squatters included). The guy who bought it is a local and owns a trucking business. He said he put less than 10K into it and is renting to his drivers. It’s a two unit. He’s getting $750 upstairs and $700 downstairs. I just attended an open house around the corner. We share an alleyway. It was a total gut job and they want 260K. It’s probably going to sit on the market for like 90 days, but hopefully they get something in that ball park. Whoever owns that one also owns the next 3-4 houses and 2 lots coming towards me. They intend to rehab/rebuild all of them to the same standard. That said even though we share an alleyway and it’s literally like 50 yards away diagonally. We are still kinda worlds apart. You can go from class A to classless F- in like 50 steps. That said there are opportunities if you know what you’re doing (I’m still trying to figure that part out). 

I guess the bottom line is Baltimore is really block by block, and in cases it even matters which side of the block you are on. The city is a pain to deal with, and it only seems they are getting even more stringent. A lot of newbies like myself gravitate toward Baltimore, because it seems cheap(er) and you can get a lot of bang for your buck.

However, what most of us fail to realize is that cheap doesn’t always mean inexpensive. That same property that looks “rent ready” in the photos... 20K renovation cost max... Can turn into a 60K gut job with zombies breaking in to take a 💩 on your floor. Even though there are 3 bathrooms and the water is turned on. I guess this last part was just me venting, but... Good luck, and be safe out there!

@Larry Turowski Thanks for the encouragement. I’m still in it for the long haul, albeit a little discouraged.

@Account Closed Thanks for the advice. I initially though I could just get a Home Depot special and swap it out. Still not convinced I can’t, but everybody is talking custom built 3-4 week wait.

Luray Insurance in Baltimore. I currently have a builders plan while I’m renovating. My property is in union square and was built in 1880. Two flat roofs. Ask for Kim Huff.

Soooo, yeah squatters broke in and threw a mini party. Luckily, I’ve established enough of a rapport with the guy next door that he texted me, and let me know what was going on. My insurance company doesn’t open until 9:00, but I’m the meantime I’m scrambling to try and get this repaired/replaced. 

Does anyone have any recommendations as far as contractors/sliding door guys?

Is there a way to post pictures on here from my phone?

Any and all input is welcomed. Thanks!

@Jon Holdman is there anyway to post pictures from my phone (posting this reply from my phone)?

Does anyone know if there is a way to add pictures or video when I post from my phone?

I have one Baltimore property insured with Luray Insurance in Baltimore. My property was built in 1880. They are very though and they were recommended by another BP member. I plan on using them for any subsequent Baltimore properties.

Ok, so good news/bad news. 

The good news is I came into a potential windfall in the form of a warehouse full of cheap to me (gas/time spent hauling it) AV equipment. If I can actually sell a few of the higher ticket items... That’ll pay for my crib. There seems to be a lot of movement on my block. A couple other recent sales, one on the market for retail, and anythat is a short sale. I’m still on the crust, but now when I see listings it’s HOT HOT HOT, UP AND COMING, SOUGHT AFTER... yada yada yada. I’ve already received a few yellow letters, and based upon the offers. I seem to have done ok as far as purchase price.

The bad news is I haven’t accomplished nearly as much as I should have. I am having a hard time just finding a reliable contractor, and I already dropped the ball on my assessment appeal. 

I’m looking at like 4K (low bid) to cut down a tree in the backyard that just needs to go, but coordinating anything with the city seems to take forever. Power lines need to be dropped, so, BGE needs to be involved. I contacted them in May. They’re not coming out until 7/19. 

I have cracked stucco on the side of the addition and water has leaked inside. I have a quote to patch it up and repair the drywall damage on the inside for $2500. They guy who did the rehab across the street wants to knock the stucco off of the entire addition, wrap it, and put up siding...

I can’t get either one of them to respond. The $2500 guy is always on vacation and the guy across the street seems to be too busy still working on the rehab that already sold across the street. If I was going to live there I’d probably want to former, but it’s a rental, so, I’m leaning towards the latter. However, being as neither one will respond. It’s kind of a moot point. I haven’t really had much luck with Yelp, home advisor, or thumbtack either. At this point I’m YouTubing stucco diy.

The main thing is I need to get going. This is quickly becoming a tax shelter as opposed to an income property.

-Initial offer made 11/8/17 (I was on my 90 day challenge twist... turned into 180)

-ratified contract 11/16/18 

-Purchase Price: 41K

-Bro Science Rehab Cost: 20-40K (This is my first one/Kinda winging it)

-ARV: 80-120K (2 doors down sold for 75K last month. Across the street had a pending sale asking price 115K, but the listing was removed today. I don't know what that means. Contractors were working today, so, I knocked on the door and asked for a card... He didn't have one, but I took his name and number. He quoted me 65K on a full gut job (bro science). I don't like the fact he didn't have a card, but their work was waaayyy better than the one 2 doors down. He also said he rehabbed another one on that side of the street. Mine makes 4 rehabs on the block and UMD has tax incentives to buy in my hood.)

-Long term rental in an appreciating area (Expecting $1100-1300 in rent)

-4 Home Inspection Extensions (could get the water turned on)

-4 Appraisal Extensions (couldn't get the hot water heater working)

Now we're at the end of January. Up against a deadline. We finally get the go ahead from lender all contingencies have been met. Lender only needs a few days. The seller wont extend. Keep in mind they have been the reason for most of the delays to this point.

-Ratified contract #2 2/16/18

-Lender can't close on time... Again...

-Seller won't extend... Again...

Yeah uhhh... No, unacceptable. I read my contract to figure out who is signing for Freedie Mac. I get my google/linkedin on and find out who I need to pull up on.

-I Pull Up (drive to sellers title/lawyer get extension albeit $50 a day per diem... Whatever.. $400 to keep my deal alive)

-Extension through 3/5/18

-Lender ask for extension Friday at like 4PM... says they can't close... again...

-I'm livid... Keep in mind lender is my primary bank (personal\LLC)... Mortgages just are not their thing. They don't even have docusign. I'm driving back and forth putting ink to paper.

-Pull up twice on Friday... set a meeting for Saturday

-I take out a personal loan for $25K (Should've done this 3 months ago, but I wasn't being creative enough... Apparently, I have instant approval credit??? Whatever... $540 a month for 5 years. No early repayment penalty.)

-Hadn't heard anything as far as an extension as of this morning

-Realtor calls frantically this morning implying seller doesn't want to extend... again...

-I pull up... again...

-I feel her out, and I'm pretty sure I could've gotten another extension, but at this point I just want to close the deal. 

-I was under the impression we needed 48HRS for the HUD, so, I'm thinking I need an extension no matter what. However, in order to keep my deal alive. i inform her cash is now an option. she says we can close today.

-My bank has a branch across the street. I send the wire transfer. Then I pay for insurance/reschedule walk through and closing from the parking lot.

-An hour later I'm officially a real estate investor, or at least rental home owner. I'm not sure if I can call myself an investor until I've actually made some money.

-Around the same time I'm calling my lender to let her know what happened, they send closing docs to title company. Too late. She's happy that I closed the deal and happier to be rid of this whole situation, but mad that I kinda left her out of the loop. Whatever, I lost faith in them to close the deal... Sorry

-I broach a cash out refi situation

-She say's her whole team hates her over this loan, and that if they see my name everybody is going to go crazy. Meh, my payment is roughly the same (actually a little less) except I have to pay my own taxes. The interest rate is almost double, but I'm technically already free and clear. Worst case scenario my W2 means I can stomach the loan payment, and it's only 5 years instead of 30.

I'm leaving out a whole host of other obstacles and hoops i've jumped through, but you get the picture... 11/8/17-3/5/18. Now comes the fun part... I think...

Thanks for all the help along the way. Back to work.