All Forum Posts by: Javonn Musgrove

If I wanted to add an ADU onto the property of my primary residence. Where would I start? Zoning, planning, etc...? TIA

Hello BP, 

Was wondering any in the Pittsburgh market building ADUs or adding them on? Looking to get some insight thinking of it for added value/income to my property.

Im in the Pittsburgh market, I have a 14KSF lot that I want to maximize. It currently houses a 2214SF side by side duplex with attached garages. I want to convert a large parking pad and some grass into a detached 2-3 car garage/storage with an 800SF 2bd/1ba apartment above. 

Has anyone done this in the Pittsburgh area? Would love to get insight on the process and cost?

TIA

Hi BP,

Looking for advice on how to market myself to potential private lenders. 

Wanting to expand my lender list to scale and accumulate wealth for both parties. 

Any tips would be greatly appreciated. 

I am currently working on a Lenders brochure and a powerpoint presentation. 

Looking for advice on extending my private lending list. I've currently done two transactions with private money. Both with my father 100% finance PP+rehab, I bring closing cost when I refi out.

How do I market this some other family members that I know have the stagnant funds but may be skeptical? If I can increase my private lenders list I can scale even faster and close on more deals. Im learning the velocity of money and compound interest by using my dad as a lender. And using his HELOC twice in a year.

Which ultimately would allow for easier syndications down the line. 

Any tips on how you marketed yourself to potential private lenders would be appreciated. 

Investment Info:

Small multi-family (2-4 units) private money loan investment in Mc Kees Rocks.

Purchase price: $125,000

Occupied duplex purchased with private $ at 8%. Will hold with private money for ~1yr. Will perform minor cosmetic updates, increase rents. Refi into an FHA loan and house hack again.

What made you interested in investing in this type of deal?

My private lender actually sent it to me. Great opportunity to owner occupy with another FHA loan. Using the same HELOC from my first deal.

How did you find this deal and how did you negotiate it?

Listed on the MLS. AP $149K Our first offer $115k all cash home/sewer line inspection, seller countered $132K no inspection w/home warranty. We countered $125K home/sewer line inspection. Sellers agreed! ~17% discount

How did you finance this deal?

Private money (dad) recycling the money from the last duplex purchased with his HELOC on primary residence. Will refinance into an FHA loan.

How did you add value to the deal?

Will increase rent to market in one unit. Will occupy the other unit and rent out the other to coverage mortgage. Minor cosmetic repairs to update units. Rent was marketed at $690 and $750, when the actually leases were for $797 and $750.

What was the outcome?

Due to close the day after my 31st birthday!

Lessons learned? Challenges?

Stick to your buying criteria. Sellers didn't want to allow inspections initially, which was fine as we were ready to walk away.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Worked with my trusted team realtor John Gates, Lender (dad) John, home inspector William Signori

@Matt Dingus I am interested in these events.

@Fred Shatzoff that would be a possibility as well. I’m down with any type of creative financing that still makes sense for my numbers.

Hi BP,

In the Pittsburgh, PA market.

So I have a good problem if you will.

I BRRRRHOUSEhacked my first duplex with 100%, PP+reno+cc, my fathers monies. I purchased off him using FHA loan 30yr @2.25% 96.5LTV 3.5% ~$8k total out of my own pocket. Plus he gifted equity to excuse the exemption on non arms length transactions. Which would of capped my FHA LTV at 85%.

Purchased that why to save my own capital, improve my credit score, and I saved on taxes! In PA no realty transfer tax on family to family transactions.

Say all that to say, I used private money on my first deal and paid my lender back plus the interest. So my good problem is I can reuse the original $190k from my dad, but he also is sharing one of his lenders with me. She wants to invest potentially up to $250k but for sure $150k right now.

The challenge for me is to learn the velocity of money. So I need to find deals to take this initial monies and reuse it potentially 4x a year.

Purchasing an occupied duplex with private money (dad) @8%.

The challenge is I have to refinance out of that loan 3 months after closing. I could find another private lender that wants to park some money for two years at 8%, no penalty early buy out.

But is there a way to cash out refinance, to pay back lender? After holding title for 3 mos with no mortgage, purchased cash investment property?