All Forum Posts by: Ramez Qubain

Investment Info:

Single-family residence other investment.

Building 9 new Single Family Homes between 3,800 and 4,200 SQFT. Mediterranean style in the Maida Vale development in Durham.

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

there were 9 lots available for sale in a fully developed community. We got a good deal on the lots, and now with the very high demand in Durham and with the lack of supply, we decided to start building now.

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

My partners were having a casual conversation with a broker about another deal and he mentioned this one to them, so they went and saw it and we made an offer and the owner accepted.

How did you finance this deal?

Land was paid in cash, the building was through some cash and construction loan

How did you add value to the deal?

bought the lots at a price lower than the market at the time. we are adding value through the design and my partners being the contractors.

What was the outcome?

yet to be determined

Lessons learned? Challenges?

the biggest challenge is that we try not to sell before completion of construction due to the instability of the construction costs. so there is some stress on the cash flow and financing.

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

TBD

 thank you so much Emily

 Thank you so much

 thanks Matt

Hi, 

My new construction townhouse is going to finish by end of this month and am looking for a property manager specializing in high-end properties. Most of the ones i found on google have properties listed at a much lower price point than mine. i am worried that those don't have the experience, the marketing channels or the service required to handle high-end properties. 

Can anyone recommend a company in Raleigh/Durham NC?

thanks

My new construction townhome is about to finish by the end of the month and am looking for a home inspector to inspect the home before closing. 

thank you

Hi Caleb, 

i am currently working with 

Paul Norment from Cross Country Mortgage, LLC.

i haven't closed with him yet, but so far he is very responsive and seems to know what he is doing. 

let me know how it goes?

Update: 

The market value of this property is currently 675k or higher, and my contract with the developer as mentioned earlier is 529k;  and the property will be ready to close in a couple of months (there has been a delay from the original handover promise date)

So i need your advice on which option might be best

Option 1: close on the property using cash from a Private Loan and immediately sell it with a profit of 146K and pay a hefty capital gains tax,  then use the net proceeds from the upside and the 5% down payment that i paid the developer last year to put the money on another property as a down payment?

or Option 2: go ahead and get a mortgage on the 80% of the original 529k, rent it out and have 20% down payment plus the 146k profit as equity in the property? so i will be having a mortgage of 423K and an equity of 251k right from the get go. i did the rental calculation using a 3500 per month rent and i should be cashing positive $220

which option do you guys think i should go for, keep using the money to flip properties or buy and hold one with lots of equity in it?

Hi Bigger Pockets, i need your advice on this off plans property that i already put a down payment on.

Background information. last year i joined BiggerPockets premium with the intent to invest in real estate no matter what. i am currently living overseas (US Citizen) and given the pandemic it was not easy to find a distressed property which i can flip or fix and then rent out. however i came across an alternative option which offers both some kind of safety in terms of the property's condition and the risk associated of buying remotely and incurring lots of hidden problems while at the same time getting some upside on the deal . 

so i found a developer in NC who is willing to sell me at a discount for a property that will be finished next December, i.e. 8 months from the now. the property information is as follows

City: Durham

Development: 25 Townhomes, 5 buildings and 5 townhomes in each building. there are end units and middle units.

Property Type: Middle unit Townhome

Size: 2,600 SQF, 3 ensuite bedrooms, 3.5 bathrooms, 1.5 garage

Listed Price: 529k

Handover Date: December 2021

Down payment to hold the townhouse and price paid to the developer: 5%, i.e. 26.5K

The development is different than anything in that area in terms of design and quality and they have already sold (under contract) 15 out of the 25 units. 10 units will be delivered this May. 

I opted for the last units because it would buy me time for appreciation (the market there is very hot, very limited supply) and to come up with the rest of the down payment should i decide to close. 

These are my options

1- Cancel the purchase before the closing and get 50% profit, i.e. the difference between the purchase price of 530k and the market value at the time, i.e. the developer is nice enough not only to give me back my down payment but to also to share the appreciation

2- Close on the house and then sell right away at the new market value and keep 100% of the appreciation minus the closing costs and capital gains taxes

3- close on the house and rent it out with a zero positive or negative cash flow. i did the rental calculation. then sell anytime in the future. either two years later to avoid capital gains tax or before when i feel is the right time to exit.

so my question is two fold. what do you think of this deal (let me know if you need more information) and which option would you opt for?

Great feedback Rabih, are there any issues or certain procedures to overcome for non US residents? I have some non Us residents who are interested in partnering with me but am not sure how to go about it