All Forum Posts by: PJ Boxel

Good morning PJ, This is actually something that we specialize in. Feel free to DM me and I'd love to be of any assistance.

Hey PJ,

There are still a few great lenders who can help like something like this, but you might run into some loan minimums with groups who can maximize leverage.

How much is the ARV? And how recently did you purchase it? You might also deal with some seasoning issues as well. And I'm assuming that you did some rehab to the property as well?

70% is certainly doable with the right group, and I actually think there are a few that can do 75% if the seasoning is there. 

@PJ Boxel trust those instincts sir.  You are posting this for a reason.  Trust what you are saying to yourself. 

Also, related here is making sure you are getting the necessary training to be hyper accurate on your comps. I want your goal to be within 5% of your initial estimate when you flip or refinance.  Take every class you can on this subject.  Ask your title company if they give these classes.  Get connected with local real estate investor groups in your area and show up when they provide training on this subject.  Do everything you can to be REALLY accurate when estimating value.   It will help your career. 

Hope all of that makes sense.

Hi All,

I am looking to do a BRRRR in a market that I am not very familiar with (Actually not familiar with at all). The person I am doing it with brings alot of value and they have resources in that market that will make this cool (Sober living).

Comps are an issue though, because there are really no comps of similar properties. This is a 5/2 ,but it is only 2300 sf, whereas most of the 5s in the area are 3200-4k+. This is more the size of 3/2s. 

So here is the question: When evaluating ARV, if we have a 3 bed and a 5 bed of similar size, build, condition etc, how much value do we give to the extra bedrooms for the 5 bed, when the square footage is the same as the 3 bed?

I've seen articles with arbitrary numbers like 10, 20k. Anyone have any ideas? Thanks,
  

Quote from @PJ Boxel:

Quote from @Kevin Sobilo:

@PJ Boxel, I don't consider myself an expert but I think I can offer some info.

With zoning, a municipality starts by creating a master plan for how they want to see development unfold in their community over the coming decades. That is how they plan where the boundaries of each kind of zone are. 

From the master plan they create a zoning ordinance that lays out all the details for how each type of zone is to be regulated.

A subdivision is a plan to develop a plot of land by subdividing it and usually adding in infrastructure like roads and utilities. I'm sure in most cases the land involved is all within 1 zone appropriate for the type of development but I'm sure sometimes they need to get zoning changes/approvals as well.

A subdivision is just a land use like building a single home and unrelated to how zones are laid out except that when they update the master plan in the future they may adjust some boundaries to run along these subdivisions.

Also, while an appraiser will likely look for comps within a subdivision, in many places that will not be possible and they absolutely will use comps from outside.

 Hi Kevin,

Thank you very much for your answer, appreciate it! It definitely helped me get an understanding of the differences. 

In most books/podcasts I check regarding the subdivision topic, it is stated that appraisers prefer to go further back in time (recently sold from 3>12 months), before leaving a subdivision. Because the building type, structure and/or age could wildly differentiate per subdivision. Ant thoughts on this?

I'm guessing this depends on the area. I don't think there is a hard and fast rule. In my area subdivisions are probably smaller than some other markets. Many are probably 10-50 homes. So, many times there may not be good recent comps. Also, if the houses are not similar in size etc then they may not be good comps within the subdivision.

In addition, if the local market is appreciating or depreciating quickly going back in time is probably less accurate than staying closer in time and expanding the area to find comparable sales.

So, I would not think there are just a few hard and fast rules they go by. I think it can be a little more involved and like I said it could be different in other markets where subdivisions are larger and comparable sales withing the subdivision are easier to come by.

@PJ Boxel, I don't consider myself an expert but I think I can offer some info.

With zoning, a municipality starts by creating a master plan for how they want to see development unfold in their community over the coming decades. That is how they plan where the boundaries of each kind of zone are. 

From the master plan they create a zoning ordinance that lays out all the details for how each type of zone is to be regulated.

A subdivision is a plan to develop a plot of land by subdividing it and usually adding in infrastructure like roads and utilities. I'm sure in most cases the land involved is all within 1 zone appropriate for the type of development but I'm sure sometimes they need to get zoning changes/approvals as well.

A subdivision is just a land use like building a single home and unrelated to how zones are laid out except that when they update the master plan in the future they may adjust some boundaries to run along these subdivisions.

Also, while an appraiser will likely look for comps within a subdivision, in many places that will not be possible and they absolutely will use comps from outside.

Hi PJ - 

There are lenders that'll allow FNs that don't have credit established in the states. Happy to connect.