All Forum Posts by: Philip Bashaw

@Brian Adams congrats on another successful syndication! It looks like you got that last $3 million together pretty quickly. Do you have any pointers for doing it on a smaller scale? I'd like to raise $1.5-2 million to purchase and rehab a small apartment building; under 20 units in an A class neighborhood

Thanks for the input @Rick H! Are you saying 8% plus an equity share? That seems a little too generous since it be a longer term loan while the community improves and banks start lending there again...

Hey BPers!

I had a friend quit claim a condo to me in Lithonia, GA. However, it needs a lot of work due to water damage. He also owed the HOA a lot of money, but they are working with me by allowing me to pay only the principal balance and waiving all the accrued interest and late fees and giving me 18 months to pay back everything in arrears interest free!

The values are low due to condition of the community and deadbeat not paying their dues for years. However, the HOA is motivated and feeding me deals because I am willing to go in and rehab the vacant, abandoned & neglected properties once they foreclose or have them deeded over to them. The community is in the 2nd year of a 4 year assessment to improve the buildings and grounds. This is one reason I'm interested in the community. Another reason is the fact they are motivated and have a good legal team and management company willing to work with investors that want to improve the community and get homeowners in there. That is my plan.

Here's my questions:

What are my best options for finding money to rehab several properties at once? and the best way to find a private money lender for 8% or better terms so I can offer owner financing to new homeowners?

FYI, banks won't lend in there yet. We need a higher ratio of homeowners and higher compliance/participation rate with HOA dues.

Thanks! I'm looking forward to the responses!

Oh yeah...the HOA is giving me very favorable terms on paying the dues in arrears for the quit claim deeds and any of their internal foreclosure as well. The most I will be on the hook for is 12K per property with 18 months to pay it back interest free.

Thanks!

Hello BP Bankers, Lenders & Brokers!

I am seeking guidance (and possibly funding) for a very unique opportunity in an undervalued condo community in Lithonia, GA. Normally I wouldn't be interested in this but I am for 3 reasons. The first reason is that I am working directly with the HOA so they can feed me deals via quit claim deeds or HOA foreclosures. The second reason is that the HOA is in the 2nd year of a 4 year assessment to improve the community by fixing all the exteriors of all buildings, removing dead trees, repaving walkways and working toward resident compliance with HOA dues and more... The board is very engaged in improving the community. One board member owns 4 units and she is very active with the HOA and retired.

I am currently rehabbing 1 unit in the community (acquired via quit claim deed) and their are several more on the way; 3 coming next month. This is the 3rd reason and the HOA board members all like my plan to go in and rehab these properties, record 2-3 sales with owner financing to set some good comps so banks will start lending in there again. There are 1BR units, 2BR units and 3BR units that are either flats or townhouses. My goal for the 1BR's is ARV's of $55,000. The 2BR's to have ARV's of $70,000 and the 3BR's to have ARV's of $90,000

This first one I am doing is a 2BR/2BA with 1200SF. My plan is to do a really nice rehab on it and get it appraised. I will owner finance it to a qualified buyer. 

My question is this: What is the best way to attract lenders that will give me favorable terms so I can do several of these at once? Remember, the HOA is giving me the first crack at anything that comes up. There will probably be 15 properties this year

Hey @Nick Brubaker

Like @Rick Baggenstoss said, I have experience on McAfee and currently own a house on McAfee. This was my first investment purchase and Rick actually advised me on it, so I don't mind sharing. It's good you are paying cash! That part of McAfee a better rental than a flip because it's a busy road, on the bus line and the values aren't as high for a flip, especially at a 48K purchase price. A lot of buyers are turned off by busy roads and you generally have to lower your price to sell it, which reduces your profit. 

My house is on 2551 McAfee and also a dividable lot. It's good to have that as values increase, but I would not worry about that right now and just concentrate on doing the bare minimums to get it rent ready as fast as you possibly can. Dekalb housing authority might be a good fit here because I think they need more houses for their program participants. I have decided to use mine as a live work/ space for my REI business and have started setting it up to do that.

Let me know I'd be happy to meet and look at your property. I also have a local, retired painter that loves to do local projects. He's a bit slow, but will do a good job for you.  

Donovan,

Search the forums for Brian Adams...he has written a lot about syndication deals. I think that's how he does a lot of his deals. Also, let me know if you want to do anything in a Atlanta market.

Phil

Mersades,

You can also drive for dollars. I found a very profitable probate deal  by l leaving a note inside of a dirty screened porch. The house look bad with an overgrown yard, old dusty car in the carport, etc...it actually looked creepy. The owner had died w/o a will and it had just come out of probate. His son called me and we struck a deal. 

It took a little longer to close because he had to post a legal ad for 4 weeks for any potential heirs to come forward. The flip is now underway with a nice backend profit. This one makes up for all the ones I haven't gotten by leaving notes on doors or porches. Good luck and keep your eyes open while driving neighborhoods. FYI...This house is actually in a good neighborhood with 350-500k ARV's!

Phil

Hello BP!

I thought I was doing well enough to get an FHA approved mortgage for my primary residence. I was actually approved and in process by Quicken Loans, but they mortgage banker didn't properly prequalify me, so they cancelled my loan. I now stand to lose $4500 earnest money unless I can find another lender that looks at more than DTI and only documented income. My credit is good, but I just sunk a lot of cash into my current project and I don't have the reserves I now require.

Does anyone know of and FHA or conventional banker that can get me qualified? There's got to be a way to make this work, but I only have about 40 days to close. The seller signed an extension.

What about a crappy apartment complex in a good area? Is 10% the average? I'm about to jump into apartment investing in the next few months in Atlanta (intown Atlanta) and have seen a lot of older buildings that need updates. For some weird reason, they have really high occupancy rates. Must be location...

Good info guys! I'll have to adjust my budget for my first building