All Forum Posts by: Kawika Smith

So first issues I ran into is my entitlement for my counties in NM and my entitlement that I have left currently-- I still own my first home (primary Residence) and wont have enough to build the 4-plex. A lender told me I could re-finance my current home out of a VA or do a cash out Refinance.

Next issue I ran into was the fact that the VA would be looking to make sure that the home I am building (investing in) is a noticeable upgrade from my current home-- Current home is 1600 sqft. So the unit that would be my primary residence would have to be noticeably larger and "nicer". Which causes the issues of cost to build a home larger that 1600 sqft and additional 3 units would be difficult or improbable with my remaining entitlement.

Also, the lenders I spoke to said that they could not take into consideration the future rents during the build to assist me in qualifying.

As for Comps on the 4-plex that was another issue since I have to make a larger unit for my residence, there were no comps for the bank/lender to justify the build or plans.

So not totally impossible, but for me as self-employed and without full entitlement it would be a stretch. If anyone has any more input that would be greatly appreciated as I still would love to do this in the future!

0 Votes

Albuquerque, New Mexico

Quote from @Erik Browning:

Quote from @Kawika Smith:

Quote from @Erik Browning:

Hi @Jeff Marzo, you can certainly build a multifamily with a VA Construction loan - I'll attach the screenshot of the product matrix at the bottom. I'm a broker and can facilitate these in the states that I'm licensed in. I've done a renovation loan myself on a residence that I owned and these are similar in nature. Also, I'm helping a fellow veteran in Washington state right now with his construction loan - although he's doing a single family.

@Kawika Smith Here's the thing with building - most veteran buyers are not aware of how hands on they need to be with the process. It's like a part time job that you must tend to on a daily basis.

Everyone's favorite thing to complain about (contractors) are the biggest hurdle because there is required paperwork that needs to be filled out and (most importantly) the contractors need to answer the phone and communicate.

So know these 2 things before you start:

1. Are you actually serious? Or did you just watch a TikTok for building a home and you think it's a fun little project? Serious people only with these things - most people are not serious.

2. Understand that you will need to get contractors that are equally serious, answer the phone, and are partners in the process. Additionally, quality contractors come at a premium.

Here is the product matrix I promised: I am absolutely serious and very passionate about this! I appreciate your straightforwardness. I am also a realtor who specializes in military/VA— I am new into real estate investing, and two years into the business as a realtor.

Hey Eric, I am absolutely committed to this and willing to do the work. I am also a full time realtor— for two years, so still fairly young at it. Thank you for your straightforwardness! I understand this is a huge task and project but I am committed.

I have a small understanding of the process but I do have an investor who owns his own design and construction company who want to support. I have beginner knowledge on this subject but am dedicated to learning and making this happen!

I would love to connect with you to find out more! Thank you!

I think I have a webinar that I could send you. It's specifically designed for realtors.

YES please! That would be great! Thank you!

0 Votes

Albuquerque, New Mexico

Quote from @Erik Browning:

@Kawika Smith Here's the thing with building - most veteran buyers are not aware of how hands on they need to be with the process. It's like a part time job that you must tend to on a daily basis.

So know these 2 things before you start:

1. Are you actually serious? Or did you just watch a TikTok for building a home and you think it's a fun little project? Serious people only with these things - most people are not serious.

2. Understand that you will need to get contractors that are equally serious, answer the phone, and are partners in the process. Additionally, quality contractors come at a premium.

1 Vote

Albuquerque, New Mexico

Quote from @Jonathan Cisneros:

Kawika,

I too would like to find out about this. I'm a Veteran myself. Feel free to PM me.

Hoorah

I will keep you updated and send you a pm brother.

0 Votes

Albuquerque, New Mexico

I am a Realtor in New Mexico! Please send me info!

1 Vote

Albuquerque, New Mexico

Hello! I've seen many ask about using their VA Construction loan to build a quadruplex and I am looking into the same thing. I was wondering if anyone had success with this? Also, looking for lenders licensed in New Mexico that may be able to do this.

Any experience/input helps!!

0 Votes

Albuquerque, New Mexico

Hey Andy, I know you posted this years ago but, how has this worked out for you? I am attempting to do the same.

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How did this work out for you? I am attempting the same thing now!

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One of my good friends has a business here in NM, and is renting from their landlord who is willing to help them out with acquiring other commercial properties to help them grow their business. (Complicating but not sure how to word their relationship.)

My friend wants to partner with him on an investment. This investment is going to be purchased on a Real Estate Contract by his current landlord, but my friend wants to be partial owners with him as well as the opportunity to buy the property from him after about 7 years. How I am interpreting the wants of my friend is that he wants a Real estate Contract within a Real estate contract? I am completely new to Commercial real estate, but avidly study residential investing.

Any creative ways to make this work?

Thank you!

-Kawika Smith

0 Votes

Albuquerque, New Mexico

All Forum Posts by: Kawika Smith

Kawika Smith has started 2 posts and replied 9 times.

Post: VA Construction Loan for Quadruplex???

Post: VA Construction Loan for Quadruplex???

Post: VA Construction Loan for Quadruplex???

Post: VA Construction Loan for Quadruplex???

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Post: VA Construction Loan for Quadruplex???

Post: VA New Construction Multi-family Loan

Post: VA construction loan for small multi-family

Post: Creative help and advice please!!!