All Forum Posts by: Jonathan Marcus

Yes, looking forward to it and meeting @J Scott

Personally, I have not experienced a Realtor take a deal away from me, after they've agreed to work and represent me. 

You do not have to educate your Realtor about what you do, you just have to give them a mandate on what to look. Also, to show how serious you are, show them proof of funds (if you can). 

If one Realtor does not work out, fire him or her and just get another one.

For what you're looking to do, forget about those sites. Once you've identified the areas you want to build, find a local realtor who can help you find buildable vacant lands or homes that you can knock down. You might consider subscribing to njtaxrecords.com so you can easily determine land assessments. If you can buy the land close to its assessment value, you should be able to turn a profit. 

Good luck.

Has anyone here in BP done a high end/million dollar renovation? If you have what has been your experience?

I am looking at a raw space in Tribeca, NYC; a condominium with 2,975 sq/ft. My ARV is about $5 million and my research shows construction costs would be about $300/sq/ft = $838,500; add soft costs (permits, architects, designers, etc...) renovation would be about $1 million.

ARV= $5,000,000. x 65% = $3,250,000. - $1,000,000 (renovation) = $2,250,000.00 (MAO)

The seller bought it for $1.8 million about a month ago, got the plans approved and is now selling it.

I've done rehabs but never close to this price range. It would be good to hear from anyone who've done any type of spec build. What to look out for.

Thanks.

This sounds great. Please put me down as Attending +1

Thanks.

Usually that is the case. BOA maybe servicing the mortgage on behalf of an investor like a Hedge Fund or Pension Fund, etc...but BOA should still have the power of direction/disposition. Did you ask what their process is after they take back a property? From my experience the only time you're able to make an offer direct to the Bank for an REO is when you're buying in bulk. Otherwise they will list it with their REO agent.

Unfortunately you cannot make them an offer directly. Their usual protocol is to list it with an REO agent. What you should do is find out who their REO agent is; then contact that agent and tell them that you're following a Bank owned property that's about to be listed with them and you're ready to make an offer. Advice them to call you once it is in their system.

Now if this property had an FHA mortgage on it, the bank will turn the property over to HUD which will then be auctioned off, first to owner occupied buyers before opening the bidding to investors (non-owner occupied) after a set number of days.

@Tyler H is correct, the SBA 504 is designed for business owners who wants to own the real estate for their business operations. So it is only for owner occupied commercial space; and they must occupy at least 50% of the space. For example a mixed use building with commercial on the bottom and a couple of apartments on top. The commercial space must account for at least 50% of the total square footage of the building.

First find out what the appreciation rate is where this property is located. If it is in a great area and appreciation is positive, you should seriously consider holding on to it. Build up more equity and create cash flow. You can always hire a property manager to help manage the property being you're 2 states away.

Instead of transferring it to an LLC consider instead putting the property into a Land Trust for asset protection without violating the DOS (due on sale) clause on your mortgage.

Yes, having an option gives you equitable interest but it does not cloud the title automatically. You have to record a memorandum of option to do that. But only do so if you have an exclusive option to purchase where you have given a sizable option consideration on your agreement.

But if your strategy is to get non-exclusive option on SFH and put down very little consideration, I wouldn't even bother clouding the title.