All Forum Posts by: Jacob Chaney

I recently ran across 10 town homes are all zoned/being sold as single family homes. These are all new construction and are attached to each other. The numbers involve meet my investment criteria but for refinancing purposes down the road I want to take all of these attached townhouses and "convert" to one multifamily property so that I have 10 "units" instead of 10 single family homes. I will need appraisal value based on NOI vs sales comps so that I can cash out my investors.

Has anyone ever done this before? Is it possible? Does it involve the way deeds are set up?

Thank you, in advance for any insight.

Hi HD,

What section is it in NW? Are we talking near NW off N. Capitol or Tenleytown? The location would make a difference as to its highest and best use. Do you know what the lot is currently zoned for? That could really effect what you're able to build as far as structure and density are concerned.

Any RE attorneys in DC able to put together a PA involving seller and private financing? Seller wants it in his hands by 2:30 pm today or no deal. I haven't been able to reach my current attorney (I know I need a new one :-() so I'm reaching out to BP and crossing my fingers.

This is also an incredibly insight post. Thanks Steve! Where would I even begin finding an architect, construction manager etc.? I recognize the importance of putting together the right team but have no idea where to start.

Between your and Lee Masteller's post this is starting to sound a bit intimidating. I really hope I haven't bitten off more than I can chew. I understand that the DC regulatory agencies can be unforgiving and that goes double for the ANC's. All of the work I will need performed is on the inside of the building. Would I still need to submit my plans to them do you know?

The more I discover I don't know the more I realize I don't know if that makes any sense.

Can you recommend a beginners guide to rehab inside of DC? Is it ok to PM you if I have questions?

Wow Lee!

Such great information that as a beginner I never even considered. There won't be any structural changes so I'm really hoping to keep the permitting process to a minimum. I just have two upper floor units that have already had the electric and plumbing ran but will need completely renovated and have already been demo'd down to the studs. I would feel more comfortable with an architect coming to do plans/drawings so the GC knows EXACTLY what the scope of work entails.

I agree with vetting the contractor by getting current and past references from clients. I have worked with one other GC on another project and almost had a lien placed on a property because he failed to pay one of his subs after the job had been completed.

Your insight has been invaluable. I'd prefer the work begin immediately as I'd like to have these units rent ready by the time April rolls around. Can you personally recommend any GC's that are good and could give me an estimate?

Hello All,

I'm closing on a 6 unit apartment building on Capitol Hill by Dec 6. and two of the upper two units have been gutted down to their walls. These will need complete rehab and renovation.

This is my first time doing a project of this size and I was wondering two things: 1) How many bids/estimates do you usually get to make sure you're not being overcharged and 2) Do you have any recommendations for good reputable contractors in the DMV area that deliver on time/budget?

Thanks BPers

I'll speak with another commercial broker tomorrow but this realtor is pretty insistent that we hire this attorney to help put our offer together. This was my reasoning on why I questioned the need for his services at this point in the game

LOI - We are making a straight offer to purchase, no LOI needs to be prepared

Prep of Purchase Agreement - Shouldn't our broker be able to do this adequately?

Due diligence w/ Title Company/TOPA compliance - Isn't this what the title company gets paid to do? Isn't it the sellers responsibility to make sure they are in compliance with TOPA and not ours?

Review/negotiation of loan documents - Can't I work on this with our loan officer? I need to know the terms, P & I payments, pre pay penalties etc. Is it really all that different than understanding any other loan for a single family home?

Formation of landlord entity/consultation for operating agreement for LL entity - I can form an LLC and can't we just express our 50% ownership arrangement in the operating agreement?

Attendance at closing - Thank you for the offer but I think I can take time out of my day to be present at closing

I didn't think I was a total noob at this (this will be my fourth investment property). However, it will be my first commercial property. I didn't suspect that the purchase process was terribly different than single family homes. Sure, your due diligence and loan terms will be different.

Am I missing something here? Do we really need to shell out $4k for this guys services just to submit an offer?

My partner and I are looking to purchase our first commercial 13 unit property in the Washington, DC area. His real estate agent (who I've never worked with before) insists we need an attorney even before we have submitted our offer.

This is what his letter to the agent said:

"For this representation I can provide a flat fee of $4,000.00.

This flat fee includes the following:

1. drafting/negotiation of LOI

2. drafting/negotiation of purchase agreement

3. participation in due diligence coordination with settlement/title company, oversight of TOPA compliance by seller

4. review/negotiation of loan documents

5. Formation of Landlord entity

6. Drafting/consultation concerning operating agreement for LL entity

7. drafting/negotiation of closing documents

8. attendance at closing

9. supplemental post-closing issues for three months following closing

Does not include: Title insurance, title report, closing costs of settlement agent, appraisal, survey.

Any out of pocket costs (minimal) would be extra."

I can understand spending this money AFTER our offer is accepted (as we will be competing with a number of offers). I'm just not sure we need him this early in the game.

Seems like the services he is offering is a bit redundant. Can anyone tell me if this is S.O.P. for purchasing commercial real estate?