All Forum Posts by: Joe Facenda

  Possibly depending upon who is on the team you mentioned but this is project that from purchase of the tear down to settlement of the new home can take 1 to 2 years.  It needs to be well capitalized with inexpensive money.  It is not a fix and flip that can absorb typical high interest short term funding.  I am not sure I know of any creative way to do it in this competitive market but others may chime in.  It is more dependent upon having the right partners.

Nick, As you will see I am also in Vienna VA and know exactly what you are talking about. I have lived in the town for over 25 years and man is it changing!

It sounds like what you want to become is a wholesaler.  You would get a home under contract with a small deposit and then shop it among the dozen plus builders working in town.

Now the disclaimer.  I am a Realtor but I do not represent any builders.  That just isn't my area of concentration.  I have worked with sellers trying to decide if they should sell to a builder or put it on the open market.  Those experiences, plus my observations wondering around town, led me to write a blog on my site entitled, "Is your home worth more Dead or Alive."  

I looked at the what builders paid for the tear down homes sold privately and what the prices were for those that went on the open market.  The numbers showed (and this was some months ago) was that sellers netted more  - even after commission - with open market exposure.

More recently I am noticing a real bump in the entry level price points for liveable homes in town.  With new homes commonly in the 1.3 range, folks wanting to live in the area but not in that price range are causing many basic homes to jump from the high 500s to the mid 600s.

Anyway, if you do have a connection thinking of selling and the house is need of lots of work, you may try to get it under contract and flip it to a builder.

The inspection is no issue. You need to determine what "as is" is. You simply need to state something in the contract to the effect that you will have the inspection within x days and within y days of the inspection you reserve the right to void the contract and have your EMD returned.

I have bought property out of state as well.  It was not with a turn key company.  I identified a market I wanted to explore and went there to visit.  I met with a turn key company in that town and also had a local Realtor show me around.  I felt I got a better deal with the Realtor and bought with her as my buyer agent. So during the inspection and follow up I had eyes on the ground.  I am a Realtor myself so I do value the services of professional help even though I could do most of it on my own.  As I found out, this market had a few customs much different than mine and the contracts had tweaks that ours don't.  She saved me much time and aggravation. Plus I made a trusted friend in that area.   Going forward, I will not need to visit there as I trust any deal she presents. 

Now for you, it is possible that you could connect with a local Realtor to be your eyes on the ground.  There is probably not a full commission and that will probably be okay. I bet you can find a Realtor willing to go through the property and give you an opinion of value for a flat fee  and you would pay that fee.   If I met up with an out of town investor, I know I would be willing to do something like that as I would think the odds are high we would be doing serious  business down the road.  

Also, are you using an independent property management company?  They could give you an unbiased feel for the property as well.

I have a buy and hold home under contract in Hampton VA. I do not live there and It is my first venture in that market. I have bought in other out of town markets and have found the hardest part is finding a great property manager. Maybe because I am a Realtor myself, I never have a problem finding a great agent but I've had slow starts due to the wrong property manager.

So, if you use a property manager in that market and have great things to say, please let me know.  Let me know how many properties you have under management with them and their area of strength - quickly finding tenants, tenant selection, repair cost management, great communication, etc.  I do have a recommendation and am curious if they pop up in the responses. 

By the way the Realtor I used in Hampton I found on Bigger Pockets. When I saw John Leviege of Exit Realty on this site and also saw him on the CIAS site (certified Investment Agent Specialist) I knew he was worth calling.  He has done a great job.