All Forum Posts by: Evan Manship

@Tom Camarda

Everything is state specific though you do pay dues to a national board which I find very ironic.

Nonetheless, getting my license was the best decision I've ever made. I am 24, work full-time, and invest part-time. Having my license helps immensely with my goal of getting those two situations switched.

My long-term real estate investing plan includes one full-scale real estate development by  the time I am 30. I am a little way from turning 30, but I want to start learning what I can now about development and build to suit properties.

Developers -- What is the best way to get started in the world of real estate development? What would you encourage a mid-20s investor to do in order to prepare for a career in development investing?

My long-term real estate investing plan includes one full-scale real estate development by  the time I am 30. I am a little way from turning 30, but I want to start learning what I can now about development and build to suit properties.

Developers -- What is the best way to get started in the world of real estate development? What would you encourage a mid-20s investor to do in order to prepare for a career in development investing?

@Mike D'Arrigo

I guess I should have made this more clear. I work in commercial property tax. I am very familiar with the process and intricacies of Indiana real property tax, but was more curious to see how investors handled it.

Do you hire someone to represent you or conduct them yourself? What is the timeframe normally like? Who do you find knows the most about the market (appraisers, brokers, etc.) 

I have been looking at several properties in the Indianapolis area that currently have assessed values far and above the current list price/sales price. It seems that there are thousands of dollars wasted on property tax that are due to inflated values.

How do you go about your property tax appeal process for your properties? Who (if anyone) do you use to ensure the least amount of tax liability?

Help!

I purchased a 7,000 square foot, 4-unit multi-family home last September with the intent of utilizing a FHA 203k loan to rehab and lease the units while living in one of them for free. However, after a long story, I closed on the deal in cash using hard money and have been sitting on it ever since.

I am wanting to rehab this property and lease it out OR convert these units into condos and sell them all off individually.

My fear is that if I continue looking for an investor to partner with I may not find one and holding costs will add up and at the same time, utilizing a huge loan with huge PMI sounds very risky to me and I'd like to avoid it if I can. It's a true catch 22.

Details:

Purchase Price - $90,000

Current Market Value - $130,000

Square Feet - ~7,000

Units - 4 (separate entrances, basements, meters, etc.)

Rehab Needed -$250,000 (conservative)

Post Rehab Est. Monthly Rent - $3,600 ($4,800 once I move out)

Post Rehab Est. Annual Rent - $43,200 ($57,600 once I move out)

Annual NOI based on 50% rule = $28,800

Cap Rate = 8%

Est. Value based on income approach = $360,000

If sold as condos.....

Post Rehab Per Unit Sale Price - $125,000

I think this project if done correctly can provide very solid footing for my imminent plan of being a full time investor. I have been stressing about this project for months and I am in need of serious developer/investor/friendly advice. What do I do?

Get a mortgage? Pursue joint venture? Or just sell it all together? I want to move forward with other projects and this one particularly is taking up a lot of time and money. Help!

@Rusty Scott

Sent you a PM

Sorry -- clicked submit before I was all done.

Rehab budget: $35k-$40k per unit ($150k-$160k

 Timeline: 100 day project per other contractor quotes

ARV: About $400k at time of completion.

Current Value: Most likely around $150,000

We had also thought about re-parceling the property to flip as townhomes, but getting the property into retail shape would involve acquisition of more land for parking and other costs that may not be feasible. There are a lot of moving parts to a condo-flip project that leasing the units doesn't have

Does that help, @Rusty Scott?

Hey BP,

I have a current project that I am actively working on and seeking advice from the BP community. My twin brother and I co-own a multi-family property free and clear. We were planning on utilizing an FHA 203k loan to bring the property into rentable shape. However, the contractor quotes we got plus the mortgage insurance we would be paying is too much risk to take as young investors.

However, we think that if we can field a private investment from an individual (hopefully a contractor), we could cut out the upcharge that our contractor has been quoting and avoid the PMI payment altogether.

Ideally, I would love share the cash flows with the investing member in equal share of our contribution to the project. Each unit would easily fetch $1,000/mo and most likely around $1,200.

About the property:

4 units (separate entrances)

1,500-1700 square feet/unit

2 2-bedroom units

2 3-bedroom units

Near north side of Indianapolis

Advice, contractors, potential interested deal-making parties are all welcome to the conversation.

@David Szymczak

Chalk me up. Would be great to meet up.