All Forum Posts by: Joshua Smith

Hi all - My brother has a 4 unit in DC which has 35% equity in it. I'd like to do a significant renovation and am exploring the viability of a HELOC to accomplish that. As an owner occupant, should my brother expect that banks will give me the typical 90% or even 95% LTV HELOC? @Aaron Smith 

Hey guys - just an update for everyone. My brother and I are on track to acquire two four unit properties in Trinidad. I've acquired TOPA rights to one four unit and am on track to acquire the property shortly.. My brother is closing on a big four unit in early 2017. It's been a long road to acquire these... we marketed all over Trinidad and Carver Langston with yellow letters. Still have 4 properties in the pipeline; although four unit properties have appreciated ~ $75K in the past few months since we spoke to those properties' owners. Good news is we locked in prices back then for these properties. 

My property is pretty run down and needs a gut renovation, which is great. I'm lining up a 203K for the reno and will rent to Galludet or Georgetown students, let it season, and then refi out for other investments. 

My brother's property is in much better condition and needs ~$150K facelift. We plan to rent out and refi there as well. The property will have two big three bedroom units and two regular sized two bedroom units after reno. Property will cash flow well for appraisal. 

Condos are a great idea, although with so much inventory coming on line in 2017/2018 and rates increasing, we are considering more seriously keeping the properties apartments and cash out refi-ing. 

Hi all,

My brother @Aaron Smith is planning on 1031'ing proceeds from his 4 unit into a 4 unit renovation project in Washington DC. 

Two quick questions for all you 1031 experts:

1.) Can he 1031 into an LLC? (meaning can he purchase the property with an LLC, having 1031'd into it). He owned his previous property in his own name.

2.) If so, can the LLC have a partner?

The reason we are asking is so that he can have the best chance to get approved for financing (If a partner is able to join the LLC to bolster the financial strength of the LLC).

Any and all comments are invited.

Thanks

Josh

@Meaza Aboye Very close to putting an off market 4 unit under contract. Pretty exciting.

@John Sa Great - always good to have someone on the same track. PM me and let's keep in contact. 

@Umair Ahsan seems there are three options: renovate and condoize simultaneously (while vacant), rent out for fixed contracts that end around the same time and start condoizing process when vacant, hope for the best while condoizing and pay off if TOPA gets in the way. DC is a tough place!

Hi all,

I'm about to acquire a 4 unit property in DC. They are pretty beat up properties and I'll need to do some heavy rehab work. 

Do you all have any recommendations for 203K contractors in DC?

Hi all, 

I am gearing up to purchase a preforeclosure or foreclosure with hard money, and then refinance into a 203K. 

The main issue is that the four unit properties I'm looking at need a lot of work - probably $200K-$225K. I will likely be able to buy them for around $300K-$400K. I understood that non-streamline 203K loans provide up to 50% of the loan for repair, which would mean that the max I could get would be $150K-$200K. Is this the case, or is it "up to 50% of ARV"? Any insight would be very helpful.

Thanks,

Josh

Got it. Thanks. I'll let you guys know what ends up happening. Should be a good option for the seller - all taxes wiped away with cash.

@Ned Carey - Thanks for the insight. Sounds like my best bet is just approaching the owner, offering to pay his taxes off if he signs the property over to me. At that point the lien would expire, correct? and the holder would no longer have any claim on the property? I know you are not familiar with DC, but is that generally how it works?

@Russell Brazil - Thanks!

@Ned Carey - Any insight would be very useful! Looks like the lien was assigned to the private LLC last year in early May. Does this mean expiration of the lien is coming up here shortly (one year anniversary)? It seems if the taxes are paid off by the property owner (or by myself) before the year anniversary, then the lien owner would not have the opportunity to gain title. I would effectively steal it away perhaps?

Hi all - I have been looking for distressed properties in DC and came across a property with nearly $200K in delinquent property taxes. It is the perfect opportunity to get a property for a massive discount.

However, looking at the records, it looks like a bank had a tax lien and then assigned it to a private LLC a little less than one year ago. I'm not too familiar with tax liens; however, how could I gain control of the property? Could I offer the owner cash to erase all taxes with the understanding that I would take control of the property? If so, would the lien disappear?

Any help with this would be much appreciated!