All Forum Posts by: Justin Hammerle

@Abe B. - there's a lot to consider here, but flood insurance aside if your using $200 per unit/month you should be protecting yourself from underestimating your numbers with a 2-4 unit property in the providence area.

Not sure where you are in the buying process but glad to connect you with an insurance agent if you are looking for referrals.

happy new year! It doesn't seem unreasonable to me that someone doesn't have 3x monthly rent and needs a month in order to save for it with a $60k salary.

Sounds like 50% of soft costs and the value of the raw land would be your contribution, the remaining being the responsibility of your partner.  Whatever that percentage ratio is after pro-form analysis should serve as a good starting point to the equity split.

You are improving a property that has debt against it I assume so perhaps you want to include some additional provisions to ensure that debt is satisfied to the extent you are either keeping it on the new lot or paying it off.

Hi @Jacob Crow

1. Interest rates are subject to market conditions, and can change daily even.  There will not be a wide range on what each bank is offering, it is going to be more based on what the current market dictates.  You can go look up what the current rate is for a 30-year fixed now online.  

2. If you get a loan pre-approval from a bank, they will need to do a hard inquiry against your credit which will impact your credit score.  But as you said if you get multiple pre-approvals within a 45 day window credit bureaus will understand what your are doing and only count it as one inquiry.

3. If you have not signed an exclusive with an agent, selecting an agent is completely optional and whether or not you want to work with one is your choice.  Agents create value by assisting and guiding buyers/sellers through the transaction and if your comfortable doing this yourself you don't need to use one.  If you do decide to use one it is best to get them involved sooner than later so yes at minimum they should be submitting an offer on your behalf.

Rent out the unit you are in now, and house hack the next one with a gov subsidized loan if you qualify.

hi @Lorenzo L. - Bentley is a great school.  I've spent some time underwriting deals in the boston area and glad to connect and discuss more.

Boston as you may know is highly competitive and somewhat of a playground for institutional buyers/sellers; but there are opportunities out there for those focusing on the right RE asset class/size.

Hi @Adam Sankowski - I've heard good things about Nexus Property Management; and have know a few people that have worked there and have a relationship with them on a subcontractor basis.  

Hi @Noelle Stecher - I like #2. If you were not aware, you can use an FHA for a multi (up to 4 units) as long as you plan to occupy.

Most banks like Rockland Trust have commercial lending divisions that offer construction loans. Although they are more admin heavy than HML, rates should be more competitive. I would call a few and see whether or not you could qualify.

Congrats @Eric Sullivan - great deal and nicely designed.  Condo conversions are common and end up doing very well on the East Side of Providence, RI if you've never taken a look and have interest in exploring the area.