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All Forum Posts by: Arthur Moore

Arthur Moore has started 2 posts and replied 4 times.

Whelp,

I'm taking on my first building project :idea:

Now,

I'm young (just turned 20)...and in the past year, and initial year I've been investing in real estate.....its been damn good for me, flipped 3 new constructions before they were built and actually never made a single payment (except a few on the last one), w/o using ANY liquidity. Now the builder sold me theses properties at a discount....

But, I’ve been planning and designing and scoping for lots (I've put some work into this), got the plans....about to put the contract on the lot, price of lot is where I want it, appraisal for the plans is where I want it, financing is the best I've ever seen, Taxes in area are low.....and I've been taking a look a costs of materials....now, I'm working hard to work under budget like hell....and after the property is built I have accumulated some liquidity to suffice for a short time as reserves to retire the debt before I sell the house. Looked at all the building codes, my design fits, and I've been talking to subs everyday like crazy. Permits will be in place once I execute and get things going. Pre-construction I've allocated ample cash for marketing....and if need be...I can always hire a good realtor to close it. Area is great, low supply great demand. College prone, near downtown, residential, near largest employer of state in nearby area. Now, I haven't seen any new construction in the area, they are all older houses.....and a lot are being renovated and sold for higher value and rented out. New construction always sells better, and low wear and tear due to its newness.

Now, traffic to these high municipal, commercial, academic, medical prone areas from outer areas is getting to be a big factor, and adds stimulus to demand, added with current logistical costs and transportation.

To add more appreciation to the area, large buildings are being turned into high-rise condo buildings and lofts, going for some hefty prices.....

So IN THEORY, it looks like a win....I got some good intellectual backing from friends whom are superintends for the largest builders in the state, #1 & #2, not to mention the designer is one of my homeboys too...

Now, this has got my stomach feeling some multiple Metamorphoses wrapped up and ready to burst (if you know what I mean).......

It’s looking good so far.....

Now,
Here are your turn boys and girls to add some (+/-)critical replies, anything will help...I have got to be damn sure.......

Post: How'd You Finance Your First Deal

Arthur MoorePosted
  • Developer
  • AL
  • Posts 4
  • Votes 1

I still can't believe this worked. Financed 1st deal by aquiring 100% financing by simply credit ( in definition, financing secured by shear credit is a debenture), bought property from builder at a discount of %10 by offering him a quick close (meaning no wait-time and no-marketing expense) and frequent business relationship, contract was struck before property was finished, found several buyers before property was finished and I closed. Filtered thru those buyers and found the quickest close. Had builder pay all closing costs.

Now,

The mortgage company gives you 2 months before you actually have to make a payment. Get the buyer qualified and ready to go right after you close. Sold the property at market price and made %10 discount that builder gave me.

Builder made $40,000

Me a quick $9750, would of made $14,100 but....I had to sacrifice roughly 3% closing costs to buyer (as builder did for me) for a quick close. Big deal, I made money out of shear paper and ink being moved around. I've never even been inside the house I sold.

Made a profit W/O coming out of pocket.....

So if your a broke *** college student like I was, who was good at paying interest bearing bills, Try this one out it might work....
If it doesn't, the consequences will be utter chaos, yeah
-Art

Post: What will $250k buy in Your City??

Arthur MoorePosted
  • Developer
  • AL
  • Posts 4
  • Votes 1

In Houston: a nice loft or condo downtown encompassing hardwood 10ft ceiling or so 1000+ sqft......, taxes would run about 2.96-3.03%....and if you homestead chop a good 30% off those numbers, add some building fees per anum.....could be anything....

-also from a previous post, a pretty nice townhouse or patiohome, no more than 2500sqt.....unless its a prerryhome(=-x) low-qual......
Usually 3 floors, absolutley zero-lotline & yard space....
But some of them have Roof-Top Decks, a pretty damn good pieace of living if I must say so.....

In Birmingham, Alabama: eh, pretty robust metropolitan city.....they are currently building lofts and condos downtown, from $130k+...bring some good demand in the area.....
In the nice suburban areas, houses range from $250,000-million+.....so...I would say 250k would probably get you somewhere around mid 2000's to 3000 sqft. of good midrange quality materials to some highends.
The advantage is that lots are usually huge, with good robust acerages chilling in the .3-.7 area.
also...the taxes are generally low as hell...
Thier tax system calculated by bulk of mills is somewhat inconsistent sometimes, jumping up and down in different areas....but usually ive seen taxes really low. In the very nice subdivision outside of greystone, a highend gated community, i saw a current apprasial about a week ago with market value of a nice 2100sqft garden home @$193,000....paying taxes around $1,000....not calculating deductions.....not bad...
some its even lower....areas which don't even pay municipal tax.....
cut an extra %30 off the property tax bracket....

That about sums it up as far as my eyes can see...yeah
-Art

:wink:

Just wanted to say hey guys, My name is Arthur a newbie to the site. 20 yr oldBusiness student@ University of Houston, currently studying in alabama @UAB, taking some courses; family lives here (wanted me to try it out a semester)...will most def. be back in Houston next semester, city is too progressive for me not to be.

I am an investor on the real estate side, currently started studying the actual market dynamics of it all about a year ago....like it....since then have sold two new houses; w/ no liquidity....no out of pocket money, turned a profit and in about a week or two I will have a #3 on the resume.

I work as a mortgage broker in alabama at Colonial Mortgage Group, LLC....turning out as many purchases and refis as my infantile marketing "savyness" will allow. I don't ask for too much, as compared to other brokers, whatever I close monthly is fine...simply having an existing pipeline is hunky-dorky w/ me. Also, I handle other broker's files and do process them a bit, and get paid a decent monthly salary on top of my comission base. Can't complain.

I'm looking to start a company based upon the shear improvement of the housing industry. Cost effectiveness and gradicose quality, while encompassing stalwart curb appeal and elastic enough to meet all markets low-high, special, urban, suburban....simply chasing that dragon parabola of market perfection. I've put alot of thought into this, and I'm hear to gather ideas from you sorts. Of course, I want to make money, but I want to make prestige out of innovation and supreme strategy and tactics; put alot of sweat in to research, and produce an excellent accomdating structure(s) to brandish a signature in attitude of design and ethical business.

So guys, give me replies and we can talk. I want to know as much as possible, and mabye my grey matter will deem some type of value in exchange.

I wish you all the luck as I do my self, for the factors we can not calculate

-Art