All Forum Posts by: Chris L.

with all due respect to Ned. This place is still a nightmare for investors. Very limited blocks to be successful on. As he said only the North and South streets are getting any action. And one piece of advice is to really consider going section 8. While it sounds great most successful investors I know stay as far away from Bmore section 8 program as possible. They usually take back every bit of profit you have made on a property with their annual inspections. Lol. Again like Rich said there are just to many established working class neighborhoods to invest in to be bothering with neighborhoods like Oliver. Its just like Stations Arts district which has been under change for 20 years and still looks pretty close to what it did 10 years ago. People lost a ton of money in transitional neighborhoods in Bmore when the market turned in 2008. That bubble is building again do not be caught speculating instead invest in proven areas. Tons of deals out there. Don't compromise by investing in sub par markets! O

to prove my point if you google owner of come home Baltimore then look him up on MD judiciary search you will come back with over 25 pages of law suits and foreclosures. Must not be doing to good. Amazing he is still in business. 

no. Very hard to finance on refi or flip for buyer. Lot of board ups. Come home is bad news stay away from them. Bond street project was their original investment into neighborhood and more then half houses remain unfinished. They put on big dog and pony show for investors and homeowners but leave trail of destruction for most investors, crappy work for homeowners and projects in state of flux. Neighborhood has wide streets good infrastructure but still drug laden and surrounding area really rough. Change is extremely slow and most investors I know stay away. Just to many better areas to invest in. 

very familiar with area and is company you are speaking of Come Home Baltimore? 

This property will go for much more then 30k. That is a teaser listing. If you are looking to invest in Baltimore for under 30 k you will have to stay on extreme East or West sides. Rough areas and usually rough tenants, even the Section 8 program in Bmore is not very investor friendly. Cash flows can be obtained with larger portfolios but tenant turnovers and repairs will kill you if not prudent with your tenant selection or experienced property manager. Hope that helps!

Hey Stephen,

Great job! My biggest suggestion is make sure you pick high quality tenants that you hope will last a long time. With a cash flow of only $339 per month you can not afford tenant turnover. That is @ $4k annually which will quickly be eaten into a negative if you have to paint the place or replace something from normal wear and tear after a year turnover. I would try to lock your new tenants into a minimum of a two year or three year lease which will allow your cash flow to accumulate (don't spend it!) to cover the cost of the turnover when they do leave. Stay positive, go long!

Best of luck!

Cheers!

Hello Benjamin,

True. Cap Rates really don't apply until you get into scenarios where there are multiple streams of income on a property. Then the income of the property will help dictate the value. Most single family home values are dictated by the neighborhood/ comp value not income. Hope that helps!

Cheers!

Hello Seth,

I would like the opportunity to find out more about the properties. I may have some options for you. Please PM me if you would like to discuss further.

Cheers!

As investors you work hard for your money and that is why you should keep more of it. Everybody knows that when you get a hard money loan you pay full boat interest regardless of how many construction draws you have taken! By tweaking just one little aspect of your financing plan you can save thousands if not tens of thousands, depending on the size of the project, by finding a lender that only charges you interest on the money you have used not the entire loan amount from the time of settlement. 

Example: 

Purchase $150,000 + Rehab $100,000 +Total Loan Amount: $250,000 

Rate: 12 %

Month One Payment With Total Interest On Loan Being Charged: $2,500.00

($250,000 X 12% = $30,000/ 12 = $2,500.00)

Using the same scenario and assuming you used $25,000 of your construction reserves in the first month your first months payment would be cut in half saving you $1,250 on your first payment alone!

Month One Payment on only the money you have drawn down: $1,250.00

($125,000 X 12%= $15,000/12 = $1,250)

Imagine increasing your profit 20 to 30% on each deal with one simple move. I see it happen every day and it makes my clients smile :-)

So ask your Hard Money Lender if they charge interest on only the money drawn or total loan amount from settlement. If your caught in the wrong lending program give me a call so I can show you how to save 1,000's on your next deal! I look forward to working with you.

Cheers!

Hello Sam,

Please give me a call to discuss. Pittsburgh is one of our sweet spots and we have some great options for you to choose from. Look forward to connecting.

Cheers!