All Forum Posts by: Roger Poulin

Think environmental!  If the ground is contaminated, you may face an expensive remediation project to clean it up before you do anything. Put an clause in the contract that lets you back out if there is an unsatisfactory environmental study, then hire a engineer to do a "Phase 1", that will tell you what you need to do more tests for. I can give you an engineers name if you message me.

Other than that you would value it like any business. Figure out what the net operating income is (total income - total expense except loan servicing), than figure out what cap rate you want and do the math.  If the yard nets $100K per year and you want a 10% Cap, you get a value of $1MM (100,000 / .10). I found an ad for a land lease under a metal scrap yard advertised for a 9.2% Cap which would put the value at $1.082MM (100,000 / .092).  I am not an expert at junk yards but that is my 2 cents worth.

A good  option would be to  try to partner with a person that wholesales commercial real estate.

Good luck 

So you want to take good money out of your personal home to pay more on it each month (potentially putting it at risk) so you can put it into a non-performing investment. If the economy turns (election year) it puts both the investment and the personal home at risk.  If thing go right you may get a extra $200/mo in cash flow, maybe. It sounds like a lot of risk, for not much reward.

The Nashville market is hot now and prices have gone through the roof. Most areas have recovered or past the pre-bubble prices. However this is not a great city for cash flow. I suggest you find a good agent and see if you can sell it for what you owe, or more. You may be surprised.  Feel fre to message me if you do decide to sell. If it is near the city, I'll be glad to make you an offer, as-is.

Thanks for that Keith. I plan to be my own GC, I have a long list of subs I can call on. High quality construction around here is $90-100 /ft if you hire a GC, so I should be able to do it for quite a bit less.

I am trying to get an idea if older homes sell for $95-110/ft, what can I expect for new?

The location is close to a major hospital (Sky Line) and a couple of large employers. It is also about 2 minutes off Briley Parkway so you can commute easily to many areas of town. It is 1.3 acres, so I feel it will appeal to many that do not want the congestion of the urban core. Am I crazy?

I have a lot in the Bourdeaux area that I am planning to build on. I don't know how big to build. The house next door is 5,000 sq. ft., but most of the houses within 200 yd. are 2500 - 3500 sq. ft. If I go a little further the houses shrink as low as 1500. I would like to hear from experienced builders what size to build, and why.

I also need to project my sale price but the comps are old (1-2 years). If I throw out the foreclosures, the sales are about 95-110 per foot, but those are houses 20 to 50 years old. How much should I expect per foot if I build?  By the way, one of the foreclosures is th

Getting a short sale in Nashville these days is nearly impossible because the market is so hot. The neighborhood is an important factor.  Some parts of town you can pay mare than that level it , and build new to make more.  Also how big a house and lot are you looking talking about.

assuming you have an extra $20k on top of the usual closing costs, yes you should be able to refi after seasoning is met, A word to the wise, know all of your closing costs for the initial finance and refi. It will eat into your margin.

I recently did a purchase using cash advances on credit cards, then the following week I did a cash out refi using a commercial mortgage (no seasoning requirement).  There were lots of fees but I got a screaming deal because I could act fast. 

REIN is the local investors group and they have lots of break out groups. 

I need an person that is familiar with Nashville, TN zoning and codes. I have a lead on an ugly duplex, that was converted to a SFR, and is close to an area being "re-gentrified". According the the assessors web site the lot is 7000 sq. ft. (50 x 140) and the zoning is R6. I know I could rehab the house and put it back to a duplex and that would be good. Could I bulldoze it and put up 2 skinny houses? There is an alley in back, so I would like to put a rear entry garage / basement. I know there are set-back requirements. I think a HPR will be needed if I try to do 2 deeds. What other restrictions will I face? Is there a site I can use to research utility easements that could get in the way? I know about the property maps site, but can't find a layer for water, sewer, etc.

@Charles Baugh there are a number of factors that effect the value.  If a lot has the space and zoning for 2 houses, it can be real boom for people that had a $40k house 5 years ago. If you have a house / lot, message me and I'll take a look at it.

Depending on how active you want to be, you may want to consider getting into a syndication on an apartment or other commercial property. You will be able to have more units and that usually translates into more stable cash flow.  A side benefit is there will be many eyes on the deal and it is less likely something will go unnoticed.