All Forum Posts by: Jobin Cherian

@Kevin Sobilo

unfortunately yes, this what the city has told us several times. It is in the flood plains and due to us doing "significant" rehab. they require us to have the property above the 100-year flood plane and we have done the elevation survey and all and based on that report, it would require 30 inches above. 

One option some people have told us, is to make the bottom level a storage level, the second story currently has two bedrooms, and maybe we could add a 3rd story? I'm not sure? Im just trying to think of every option bc I do not want to lose big on this property. okay with losing some, but just do not want to lose big. 

is there anyone in your area that you would recommend I talk to for maybe more info?

hey everyone, 

I have a duplex that we bought about a year ago from a friend of ours. It went original owner>wholesaler>wholesaler friend>to us. We typically trust our friend since they have over 500 properties and have sold us several and they did not know it was in the flood plains. the original owner tore it down to the studs on the inside and when he filed for a permit, the city mentioned that he probably knew that it required fema requirements of being raised about 30 inches. This was never disclosed. The problem is this house sits on a slab. We found the same problem once we went to get permits and since FEMA has a 50% substantial improvement clause, they required us to raise the property or some solution to reduce the risk of floods. We know ultimately we should have done our due diligence and we will never make that mistake again. we are trying to go through all of our options and we need the help of our community. we have had this property for almost a year. we will be meeting with the city again next month to discuss our options but we wanted to be well prepared. The city has not been beneficial at all at this point. Most foundation companies and structural engineers do not sign off on us raising the foundation due to the high damage risk and the cost associated with it. With stem walls, I know a couple of their flood guys said it may result in us also having to do a flood study in the area and another foundation guy said it may throw off property values. One other option is if we had multiple bids for rehab at under 51.5k. the appraised value is 123, with land being 21k at a total value of 102k and FEMA requirement is we have to follow the rules if it's over 50 percent. we are all in at this property at 135k and with insurance cost etc, 140k. we think the property will be worth 280-300k. Are there any solutions/ideas you guys might have for us or any point of contact you recommend I talk to? I want to resolve this property as soon as possible because I feel like it's paralyzed the rest of our deals. Any help would be greatly appreciated. Thank you again.

@Andrew Syrios Thanks Andrew, I'll def watch over the weekend

@Kenneth Garrett Thanks For the input. We want to get more involved in the REIA meetings but I know COVID slowed things down especially in the DFW area in regards to meet ups. We were hoping some PML would reach out to us but we haven't really gotten to many direct messages regarding lending but hopefully we can start building our network and hopefully have more people reach out soon.

@Andrew Syrios Thanks Andrew! we will def try to build our network quite a bit more. I feel like sometimes we are nervous to ask the people we know especially since we are quite new, but I know we need to start telling more people what we are doing. 

@Andrew Syrios A few Private lenders gave us this rate and even higher rates. In your experience with finding these lenders, do you just have to network really well or have experience to find them or is it as easy as google search(there are a lot of scammers also)

@Will Fraser

Typically we are getting houses for 60k with 15-20k in rehab. rent value is between 800-900 with ARV at 115-125k. We are hoping for financing for both purchase and repair.

@Andrew Syrios Thats an awesome rate. We been getting more like 3 points up front with 11-12 percent annualized down in the south which I was hoping to get lower. 

Hey All,

We are currently looking to invest in Oklahoma City using the BRRRR strategy. We have been able to build up a lot of connections and have seen great deals become available, but we are limited in terms of funding. When seeking private money lenders, what are typical investor friendly terms and fees to look for.

Thanks!

Hey All,

We are currently looking to invest in Oklahoma City using the BRRRR strategy. We have been able to build up a lot of connections and have seen great deals become available, but we are limited in terms of funding. When seeking private money lenders, what are typical investor friendly terms and fees to look for.

Thanks!