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All Forum Posts by: Brian Anderson

Brian Anderson has started 4 posts and replied 28 times.

Post: Need some guidance

Brian AndersonPosted
  • Baltimore, MD
  • Posts 29
  • Votes 1

The best advice I could give you is to peruse bigger pockets postings and podcasts as much as possible before diving into anything. Get a solid gist of what the moving parts are and go from there. I am into wholesaling, buy/hold and rehabbing. I have a lot of savings up front along with private money so I am not reliant upon wholesaling to get into these three aspects. At the same time, wholesaling done right is a nice boost to build up your cash. Rehabbing is a great place to start if you can find the right deal, the ROI is unbeatable. As I always tell people in psychiatry, there are many different ways to approach the same goal, its about what you feel most comfortable prescribing based on your knowledge and experience. I believe real estate is the same. Since you have no experience, I say learn as much as you can and then figure out what you like because a certain type and level of stress comes with each choice. You want to make sure its something that grabs your interest. For example, you may hear about all the wholesale deals people are doing but you never hear about the work/money required and how easy deals can fall through or not come to fruition, etc. When I started, I spent months on this site for many hours a week learning. I wish you the best Adam

@Val Csontos It is nice to meet you, your in MD, I love Annapolis... Yes I looked a bit online through keywords and did not get too far. I will continue to peruse the internet but thought I would try my friends on biggerpockets!

@Bill Gulley Thanks Bill! Yes, that was an idea I had and have been contacting real estate agents in the area. Its been rough drilling it down to the neighborhood or zip code. I am still searching and calling around :/.

@Joel Owens Great to meet you and thanks for the info! By "end stages" I mean I have the private money lined up, a guy desiring to sell me the property which needs a full gut, and an estimate with a great contractor. Its looking like acquisition is 25k (shells) with 75k for remodeling which is cheap (good friend of mine) and market rent for 2/1 is $1000/m and 1/1 $800/m. Property will be 6 units at 2/1 and 2 units 1/1.

So maybe I am at the beginning of the end stages!ha Yes 8 units is small, but a start! I plan to upgrade next time and hopefully end up in much larger buildings within a few years. I have A LOT to learn first though. I am attempting to jump in head first without cracking my skull :/. All the research is attempting to build a helmet.

@Bill Gulley Maybe Bill can help!? :)

@John Ma

Absolutely. I also thought I had heard there was a place to find vacancy rates in a particular area online?

1) Is there a website or means of acquiring average vacancy rates in a particular area?

2) What is the best way to figure out if an area will rent out a multiunit?

I am in the end stages of building an 8 multi-unit building and am doing my due diligence.

Thanks!

@Chris Winterhalter Thank you for the info and tips. So do you think I am going to have to go hard money? It sounds like you don't think any bank would give me a loan before construction. Also, "lease up period", what are you referring too? The contractor thinks 4 months for rehab. Would I be able to do this with a 1 yr hard money loan you think? The purchase price with repairs is 110k (verified with estimate) and ARV will be approx 275k. We are also going to look into building basement apartments which would make it a total of 8 apartments but I am aware the state has certain laws. 6 apartments at $1k to 1.2k monthly isnt bad though.

@Chris Winterhalter Thank you for the info, that was really helpful! Why do you feel it might take 18 months to refi? "Tenant improvement costs and leasing fees" - what is this exactly?

The businessmen are lollygagging but it still seems like a good setup. Rental rates in the area are 1100-1300 monthly and there is a need for apartments. 3 rows of townhouses were just build a block away. I am thinking of still doing the deal and renting each unit separately with a property management firm. Now that I do not have a lease in hand, it may be harder to find a bank to fully finance it right? I have a HML lined up already and shopping for banks as an exit plan now. Ive never done this before but from what I got from you all I need to have a bank sign a contract with me stating they will refinance with me at say 70% LTV once the construction is complete?

Thanks again everyone, extremely helpful information!

@Bill Gulley Good points! Could you please clarify what I had asked about the ARV loan, I am a little confused about it.