All Forum Posts by: Pamela Swanigan

My understanding of government is that the only way to legally seize private property is through eminent domain.  

em·i·nent do·main/ˈemənənt dōˈmān,dəˈmān/nounLAW

1. the right of a government or its agent to expropriate private property for public use, with payment of compensation.

Even HUD - the Federal Housing Authorities are getting out of the business of managing public housing...it's too expensive for them because their federal budgets are being cut. They are depending more and more on public-private partnership to manage their public housing. So...if they can barely deal with the public housing in their portfolio I really don't see them trying to take on more private property from private owners. That's just not how our government works. Government operates based upon the "consent of the of the governed"...that's us. We live in a democratic republic...not Russia.

I concur with the others who believe what you've heard is pure conspiracy theory...

I had a really great experience with them.  However, their fees very high.  Know your numbers cold before going in with them.

Pam

We are very interested in building a working relationship with Hudson Lending Company, a private lending company.  Seems to be a great company.  Any thoughts you'd like to share if you have worked with them.  

Kind regards,

Pam Swanigan

Would you all be interested in expanding into New York?

Address:  1073 Howard Street, Schenectady, NY 12303;  
2800 s.f. bldg. 6Brs, 2.1 Ba.

Acquisition cost: $25K; Rehab Costs: $90K; ARV $166K - have formal appraisal; area rentals $1,100. Has attached parking lot.

Great return on investment.

Looking for gap funding.  If interested, can send a full investor's package.

Thank you.

Hi Nick,

I live in Niskayuna, NY right outside of the Capital District Region of Albany, NY -- the seat of State government, the central office for the State University of NY (SUNY) which has over 64 university centers, four year and community colleges throughout the State and two major hospitals -- these three entities employ the bulk of the people in our region --- they are known as "Anchor Institution".  These type of institution do not pull up stakes and move to a foreign country or another state for tax subsidies every few years.  They remain in the community regardless of the economic turmoil. 

What I have found is that the housing market remained relatively stable in the Albany, Schenectady and Troy area of NY during the 2008 recession for this reason.  With the a stable job market based upon the State workforce, SUNY and our hospitals -- and a chip plant (they manufacture the chips for the Samsung phones) in this region.  The value of house while it slipped a bit, there was no massive sell off that was seen is TX, AZ, FL and CA back in the 2008 market down turn. Additionally, we bounced back quite quickly. 

Not all areas of NY -- which are upstate -- are problematic.  Perhaps you can look for other city centers with a relatively stable workforce to invest, and "Anchor Institutions", rather than needing to leave NY altogether.  I believe Syracuse and Rochester may be worth exploring.

During this age of COVID-19, I'm really okay paying the taxes necessary to keep my community safe from the spread of this virus. Not trying to throw shade...just finally recognizing the need for a well funded and competent government.  There are pockets throughout NYS that are still good investment regions.  

Hope this helps.

I want to thank everyone on this conversation thread for helping me to understand the need to act on the excellent advise shared today.

Just finished applying for the $10K Loan/Grant. Does anyone one know why they need to pull credit? Will this be a hard or soft pull? I'm in the process getting financing via hard money lender...will this reduce our credit score. They are pulling the credit scores of the owners, not the business. We have an LLC. Did I misunderstand the evaluation process?

I also had a contractor call me out of the blue to ask if I would help him apply for all of the opportunities...his payroll  was over $315,000 last year.  He does not have the time.  What should I charge for this assistance?  Rate per hour, flat fee? 

Thank you!

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Beyond whether the numbers work - I need advice on how critical are blueprints during the acquisition stage.  I purchased schematic drawings for $1,200 and developed a fairly comprehensive SOW I would like to have the contractors use to give me a quote.  I'm going to get at least 3 quotes. I want to use Bargain Outlet to do the layout for kitchens and baths.  I have overall sf for both kitchen 102 sf and bath 67 sf. 

I'm being advised to get blueprints now because the 1st floor is wide open since it was formerly a church.  The cost for blueprints is another $3500 -- lowest quote I've received so far.  Is it reasonable to expect a good contractor to give me a solid estimate and build out the 1st floor without blueprints.  Can't they map out what needs to be done from the schematic drawing?  Or am I being penny wise and pound foolish?  

My other option was to take the most responsible bid price, tack on another 20% and then buy blueprints after I've gotten financing finalized -- and before I sign a final agreement with the selected bidder. I would have them use the blueprints to negotiate a final price. I have about 40% of the cash to finish the job.

Your thoughts?  What am I missing?

Thank you!

Investment Info:

Single-family residence fix & flip investment in Schenectady.

Purchase price: $25,000
Cash invested: $69,000
Sale price: $180,000

Purchased a vacant distressed home with a lot of water in the basement and everything associated with a home which had been abandoned for 7 years. We were able to breath life back into it and made it a welcoming home once again. Great success for our first project. Bought this tax foreclosure for $24K , put $85K (hard money) $25K (private lender) into it sold for $180K to cash buyer the first week it was listed.

I followed a lot of the suggestions from listening to the BP podcasts.

What made you interested in investing in this type of deal?

It was an off market deal that I brought to the attention of the City of Schenectady and asked them if they would foreclose on the house because I could not find the owner (he had passed away in 2012), nor any of this children. I found it by using the "driving for dollars" technique.

How did you find this deal and how did you negotiate it?

By Driving for Dollars technique. I purchased a county map for the areas I wanted to specialize in and starting driving about as many hours as possible when I wasn't working. I developed a proposal, presented it to the Mayor of Schenectady; they had to go through city council to approve this off market sale because it was taken outside of their Land Bank Process. So I negotiated with the City of Schenectady to buy it for the back taxes.

How did you finance this deal?

Use a hard money lender ($85K) who charged us 15% and an additional $16K is ALL KIND OF FEES I did not fully understand until later.
I also found a private investor ($25K) through my REI network -- we meet on a monthly basis.
Then I used a credit card to buy materials because of how the draw system worked with the hard money lender.

How did you add value to the deal?

This project was a 1950's Cape with strong bones,
New mechanical in the basement - new HVAC, Plumbing, Sump Pump, New electrical wiring, new roof, new 10x20 deck, new kitchen cabinets and appliances, converted from 4B -1 Ba into a 3B, 2 Ba - with a master bedroom suite on the first floor -- took out a few walls installed headers and created an open concept look to the home. Also added crown molding on first floor, including the master bedroom suite to give it an added wow factor.

What was the outcome?

I made about $50K -- spent about $25K more than I should.

Lessons learned? Challenges?

Don't let your brother do the rehabbing for you
Get multiple quotes from carpenters
Get materials list from everyone up front - go to Home Depot in a more scheduled manner
Know your numbers COLD when working with hard money lenders
Have your bookkeeping system set up before you start spending money

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes. I had to list with another real estate agent, than the one I started out with because I wanted a 4.5% listing fee -- I refused to pay 6%. I shopped around until I found more value for dollar -- Traci Cornwall listed my house for 4.5%; had professional pictures taken after I staged it sold within the first week. Also, the first realtor insisted that the house should have been listed for about $160-$165; Traci showed me new comps that indicated the price point was closer to $189,000.

Good morning!

Hi Brian,

Thank you for replying to my question. My thought was to use the Land Bank in either Albany or Schenectady County to find very inexpensive land. I want to use the calculator in Bigger Pockets but don't understand which would be best - don't see option for new construction or modular construction to see where the price point should be to ensure profit. For example -- what translates to a 70% ARV for this type of investment model. Just not sure.

Brian, I'm happy to meet up for coffee -- I see that you're realtor in my area on a forum for real estate investors.  

Be well,

Pam