All Forum Posts by: Joe Norman

Good luck with this!  203k loans are a great way to get your dream property and still have some equity.  I agree with Jeff in that the problems a lot of folks run into can be avoided by working with agents, lenders, and contractors who have experience with the 203k process.  Not all professionals have the same set of experience and skills!  

Have you looked into Hard Money Loans? These are going to be more expensive then a private loan but are easier to obtain. These are also a great way to get started because the Hard Money Lender has a vested interest in the success of the property. Instead of looking for private lenders, why not look for a local HML with experience rehabbing houses? You'll get your money easily (albeit more expensive then going private) and you'll also get an experienced set of eyes on the deal before you commit to it (helping you to avoid making a bad purchase).

I've had experience with both an REI mentor and with a business coach. They have both been invaluable to me in different ways, which I think about in context of the E-Myth's paradigm of working "In" your business vs. working "On" your business.

The REI mentor started out as an informal/unpaid relationship where I would occasionally ask him a few questions (I tried to be respectful of his time and not overwhelm him). I decided that I wanted more of his time and that I was willing to pay for it and so he and I collaboratively worked out a "paid" mentorship where we partnered on two rehabs (I put up the money, he provided a hard money loan, and we split profit approximately 60/40 - don't recall specific split but I know I got the larger share). That worked out wonderfully for me in terms of getting out of it what I wanted (we were very upfront and clear with each other on our expectations before we agreed to partner up). I believe that he got a significant amount of personal satisfaction out of it and I also know that he now has a local client for hard money loans. He and I continue to have an informal mentoring relationship and meet for lunch as often as we can. From this REI mentor I received experienced insight into how to find, analyze, and run a rehab project. I also was rapidly able to grow my local network since I had a formal relationship with an established player. My REI mentor helped me lay a good foundation for how to flip houses (that is, how to work "in" my business).

On the other hand I have a paid business consultant who is helping me work "on" my business.  This individual (he is truly an individual - not a large consulting company) is guiding me through the process of building and growing a true business (my goal is to have a business that doesn't need ME to run it).  My business consultant doesn't know the first thing about real estate investing, but he doesn't need to.

In short, I think both an REI Mentor and a Business Coach can play valuable roles in your growth, but don't put the cart before the horse - which is to say before you can work "on" you business you need to know how to work "in" your business.

Good question and good luck!

Checkout FranklyMLS.com - it is a great resource for pulling comps in Maryland.  There is a bit of a learning curve to figure out how to set up the right search terms (eg., "21234 (3bdr,4bdr) (2ba)" will pull up all the properties in 21234 with 2 bathrooms and either 3 or 4 bedrooms) but it has more data then any other website besides MRIS (which, of course, you need to be licensees to access).  I have MRIS access but I still use FranklyMLS to do quick comp searches.

Good luck!

Hey Asma, welcome to BP.  I've had great experiences flipping in Baltimore.  Since you are in DC I suggest looking in some of the west side neighborhoods like Gwynn Oak, Forest Park, or Howard Park.  There is a lot of demand from young professional families who want a house and a yard but are still committed to city living.  Plus there is plenty of vacant inventory to pickup cheap.  Good luck!

Welcome to BP! You'll get a lot of information on this site and, if you are willing to put in the time and effort, will find that the REI community in Baltimore is very open and accepting to new investors. There are plenty of great opportunities in Baltimore for buy-and-hold and for fix-and-flip. Good luck!

Welcome Jessica!  The investing community in Baltimore is very open and inviting: If you put yourself out there and are willing to work hard then I'm sure you'll find many informal mentors who are willing to help you out.  Baltimore is a great place to invest if you are looking to "force" equity by rehabbing distressed property.  Good luck!

Julie,

Congratulations on your move to Charm City!  I think you'll quickly find that its not all drugs and murder like its sometimes made out to be.  Its an amazing city with so many unique neighborhoods, suburbs - and Opportunity!

The Harford Rd corridor (Lauraville, Hamilton, Parkville) is my favorite part of the city to invest in. The large homes and lots in the area is desirable for 30-somethings who want to stay in the city but have a more "suburban" feel then some of the downtown neighborhoods. There is also a good stock of large distressed homes lend themselves well to SFH-to-appartment conversions if you're up for a project.

Hamden is another neighborhood that sees a lot demand but still hasn't become over-gentrified to the point of making it nearly impossible to find investor friendly opportunities.

My final recommendation is Reservoir Hill. Its got a more urban feel than the Harford Rd corridor, but is similar in that there are a lot of large, distressed homes that lend themselves to SFH-appartment conversions. The neighborhood is undergoing a revival due to its super convenient, central location and amazing architecture so there is a lot of potential for appreciation in the area for a buy-and-hold.

You will definitely want to start with finding a GOOD realtor.  There are a lot of crappy, fly-by-night agents in Maryland and a handful of really top notch guys that stand out.  I'd be happy to refer a few if you want to send me a private message.

Good luck and welcome to our great state!

Joe

Thank you @Andrew Cordle that is great information.  The big take away I got from it is...hire a professional videographer and let them do their thing! 

@J Scott Thanks for the ideas, I'll check those out as well.