All Forum Posts by: Jonathan Tavarez

Hi Russell, would love to be considered for the opportunity.

Investment Info:

Single-family residence fix & flip investment in Colesville.

Cash invested: $65,000
Sale price: $650,000

This was a cool deal, I basically negotiated with a family member that wanted to sell his house but didn't wanted to put any money for repairs. We agree on a number based on my ARV numbers, we signed a few papers and I put the money for all the repairs. I realized that this type of deal carry an extra layer of stress since I was working with family and I want to make sure they got good value but at the end we had a great product, sold for more than originally expected and everyone was happy.

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

I wanted to help a family member that wanted to sell his house but didn't wanted to put any money in to it. The house needed a good amount of repairs and he was originally considering wholesaling the property, but I saw an opportunity for both of us to make some money and because of my experience he decided to trust me with the house.

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

By talking to family members about the current real estate market and looking for a way to help and make some money at the same time.

How did you finance this deal?

Repairs performed with credit cards and cash.

How did you add value to the deal?

Fixed all mechanical issues, new floor, paint, finishing part of the basement and a few other things. I managed the project personally as well.

What was the outcome?

We sold the house for more than original/expected ARV, had it under contract in 5 days. Me and the family member made a good amount of cash and he was very impressed with the results to the point that he added some extra dollars to my commission.

Lessons learned? Challenges?

I learned that big houses carry a good amount of risk because of the size typically issues will be more expensive that my typical property under 1500 sqft. I like to work properties that are 3/2 and under 1500 sqft, so there was a lot of learning with this property that was close to 4000 sqft.

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

I worked this deal with the best realtor in the DMV, Sarah Tavarez :)

Hi BP Fam.

I wanted to know for my own benefit and the benefit of others how you guys overcome real estate stress? And how you keep fighting when you feel like giving up? A lot of us are “solopreneurs” fighting the real estate war in the front lines and sometimes it feels like literally you will go as far as your mind can take so what are your tips and tricks to push forward when the journey feels steep and things don't go your way?

@Tom Fidrych The completed renovations without the paper work happened more than 12 years ago, before even the previous owner purchased the property.  Here in MD they don't really do permit inspections of any kind at the time of sell or purchase but when its time to call the inspector for new work I guess that's when you can run in to these issues.  Thanks for sharing your experience!

@Jonathan Greene I was looking up OPRA and Certificates of Occupancy but all the articles I find are related to NJ, I'm not able to confirm if they have anything like that in MD.  I have several deals in the past 4 years and not once had this issue come up but like you mentioned the inspector is in their right to do this.  Thanks for the advice!

Hi BP Fam,

I wanted to share a recent experience with an inspector in PG County MD because in almost 4 years investing I have never run in to a situation like this and I’m hoping others can provide advice or learn from my experience. I have been working on a property recently and we were getting ready for our framing inspection for new ductwork and even though this is the only “change” we were doing that wasn’t cosmetic the inspector came in and told us that a lot of the work that was previously done in the house (almost 12 years ago) was not permitted and he plans on making me responsible for it. For example the house has a section that used to be a sunroom or screen porch and was added many years ago as part of the house and somehow none of this work was done with papers, also the basement was finished with a bathroom, kitchen and non-compliant bedroom but the entire basement is around 6’8” instead of 7” (minimum per code) so inspector is saying that the entire basement was not suppose to be finished and it sounds like he wants it all removed or to apply for a variance that he is letting me know upfront most likely wont be approved. At this point I’m dealing with the issues as they come and will take all necessary actions that I can to finish the project the right way but the lesson for me is I guess in the future look for the permits pulled for a house over the years and try to factor in potential work that was done without permits and add that as a risk factor. Anyone else with similar experience that can provide some constructive advice?

I consider all of that normal "wear and tear" but honestly go back to your contract, typically in the contract you explain in detail whats the expected condition of the property during move out, size of holes they can do in walls for hanging portraits and all that.  Anything that was done in violation of the contract should be deducted from the security deposit.  Best of luck!  

Hi Kelly,

Not sure how many properties you currently have but you can get a good amount of protection by getting umbrella insurance and some advice from an accountant on how to divide funds that you get for each property (separate bank accounts).  If you want to DIY a lot of the process then go to Legal Zoom and you can basically do everything there.  If you still want a lawyer I work with Levin Gann PA in Towson and have been working with them for years and they are great.  Hope that helps!

Thanks @Dwayne Wheeler

There are a few in meetup.com but I do want to make a distinction because a master mind group is typically for investor already working deals that need info, opinions or resources from other investors vs if you haven't done any deals there are groups in meetup that they teach how to invest, they do walkthrough of properties and things of that nature so it depends on what you are looking for and where exactly you are on the journey. Best of luck!