All Forum Posts by: Johnny Quilenderino

@Dave Foster thank you for the loop in. @Timothy Grant lots of moving parts for a 1031 but they are fun. Dave is the man when it comes to getting you through. Let me know if you want to chat. I am free most days, as I retired last year.

Team BP, 

I just got off the phone with my local lender just checking in to see how things were going down south and they informed me that they restricted their lending to multi-family!!! Anything, that requires commercial lending would not even be considered due to how hard C-19 hit the area. 

How many other areas have experienced this? Or is this just one bank limiting their exposure while others have not restricted their lending?

I am finding this out as I am looking at commercial blanket loans and looking at jumping into the market as these lenders tighten up, and the owners start shedding 5-100 unit properties.

Cheers,

JQ

I have a new client that is looking to rent, but has horrible credit. He had a major medical issue, he survived (his credit, did not), and now is making decent money on track to make 120k annually. 

Where do we send clients like this to find a place to live?

I am taking him on because I love to help people, but I am wondering if finding him a rental might be a bridge to far with his low credit score. Any ideas would be greatly appreciated!

JQ

Hmmm. I did a 1031, had to do cash for keys on the front end of the exchange. The 1031 backend a 6 unit. The 6 unit I ended up only doing a home inspection but did not do a pest, plumbing or electrical checks. Ended up having bed bugs within a month, and then getting the whole place shut down due to electrical code issue. Might have floated into the basement when it flooded, pulled the tabs out of the meter, and get the trons going so I can get the sump pumps going in the basement due to 6 feet of water after a hurricane. 

Proper inspections:
Electrical - 22k
Pest - 12k
Lost rent - 54k

all in one year.  

Currently cashflowing 3k a month, but wow what a ride the first year was!!!

JQ

DC inventory is at all time historic lows. I expect the inventory to slowly creep up, as interest rates race to back to above 3 percent. Deals are being made in the condo markets, but absolutely shredded in the single family home market. The last offer I placed for a SFR lost out to 53 other offers.

DC metro inventory would have to stop selling inventory for 10 months to get back to "buyers" market. We have .4 months of "good" inventory on the market, anything that stays longer than 14 days, there is something wrong with it and we can at cut at least 10-20k off the price to start the negotiation. 

How low is the inventory where you guys are looking to invest, or buy your first home? 

@Ozzy Sirimsi Yup, I have several houses that I am looking at, but since the recorders are backed up, I am seeing when investors, flippers and BRRR teams are getting paid. How long on average are they holding hard money. If the recording is 6 months of waiting, then it can be finally verified and refinanced. So, with loans taking 30-45 days to close, are those groups of people in Baltimore just accounting for 8 months of holding for hard money or developed a unique strategy to overcome this possible time, energy, and financial drain.

@Ozzy Sirimsi Title companies are telling me 6 months, so that is why I am asking our Baltimore investors how are things going out there with 8 months of possible holding on hard money on flips right now.

Team BP, I know the city of Baltimore is have a backlog of recordings for sales of property.

1. Recordings are backlogged in Baltimore 6 months at the moment.

2. How are BRRR's getting their refinances done?

What are you guys doing to cushion for the extended time? When do the banks actually deposit your money, on the title recordings or at wet signing?

How are your BRRRs being funded? 

@Patti Robertson sorry for the heading! I wrote that under a sinus headache ... I am just coming out of the daze and realized I wrote "fell" instead of "feel." I always find out my mistakes after I post them .... sheeesh you would not think I had a MS ... or finished college right now :P

@Josh C.

The house is already gutted and framed. The former owner got to the point of having the insulation inspection. The units are small. Trades need to get in for plumbing and electrical.

This is all section 8 housing or affordable housing area or an economic opportunity zone.

Finish work will not be high end.