All Forum Posts by: Michael Washington

Need some advice. I recently put an offer on a Baltimore City 4 unit property that was on the MLS to BRRR. During the negotiations, the seller was notified by the city that the property will go into receivership with a possible auction date of August.

I contacted my lawyer who is in contact with the sellers lawyer. They would like to know what is my new offer.

ARV at $450k, construction at $200k. Rents at $6k once renovated. I am leaning toward $100k and seller financing. Thoughts on pricing given it's pending receivership? Any one experienced with seller financing with properties pending receivership? Thanks.

I was recently able to secure three rehab deals in Baltimore, MD. I have an investment partner who is also a commercial contractor but interested in diversifying doing residential development and future buy and holds. He is willing to provide capital for the downpayment and closing cost. The properties are in my LLC and the loan is in my name. However, he wants to have a joint checking account - which would hold the deposit AND the funds/ payments from the loan. Additionally, he wants to be paid from the draws on the loan for scopes of work he is performing. He will hold contracts and provide labor and material for the majority of architectural work (i.e. framing/ drywall/ flooring)

I have never done this and I could use some guidance/ thoughts from those who have done something similar. What are best practices? Should I have a joint bank account? Should he be paid from the draws for work performed? (I think it is reasonable). Should he just write a check to the title company? Should he have 2nd position lien rights to the properties? 

BP Family - I have a tenant who does not pay rent on time. I am using Maryland Rent Court Services to serve the eviction notice. However, the tenant is also running a message business out of the apartment with multiple people coming in and out which is an inherent liability and risk. I walked the unit and in the bedroom has a massage table and no bed. Operating a business out of the apartment was not included in the lease, proper insurance has not been submitted and the building is not zoned for a business. 

I am in need of an eviction lawyer who can file for breach of contract to begin the eviction process. 

Please send any recommendation for a reasonably priced but efficient lawyer serving Baltimore, MD. 

I am looking at a possible 203k opportunity as a GC. For GC’s out there, what has been your experience with getting timely draws? What is the average turn-around time between draw submission and actual payment? Any pointers/ lessons learned?

I have a potential client who wants me to do a total rehab of their residence but I have heard horror stories in that payment takes a while and contractors end up being over leveraged or needing to stop work due to slow payments.

Thanks!

@Mary Mitchell This makes the most sense. Thanks.

My lease agreement says rent is late on the 5th after 5pm. Tenant says that the law (Baltimore City, Maryland) states 11:59pm. I have not seen this when I search online. This tenant does not want to pay the late fee. 

HELP!!! 

I recommend Jeff Cohen. 

Excellent question!!!! I am facing the same "problem" rather amazing opportunity as well. How did you end up structuring your partnership? 

All - These are great suggestions. Thanks for the input. 

That's a really great and clever idea!