All Forum Posts by: Sam Sharata

I am an investor and licensed Virginia Realtor living in Northern Virginia who enjoys transforming and improving communities by rehabbing run down and abandoned properties and making them available to families who would otherwise be unable to afford a home. To me, this not only makes sound business sense, but it is a socially responsible way to earn a living while providing a valuable community service.

Welcome to BP Jami. If you're time constrained and concerned about your budget and return on investment (who isn't?), then you might want to consider partnering with an experienced investor. You increase your purchasing power, the learning opportunity is priceless, and you also share the workload and risks. Trying to buy and hold in DC or VA is a losing proposition, particularly with a price point at or below $160K. Whether you choose a partner or not, you will have to make time to research your market (i.e., stalk properties), work with a realtor (or be your own), and formulate a strategy for buying your investment. Take the time to review the FREE real estate course being offered by our friends at BP (it's under Education link. I recently discovered it myself and I've learned a thing or two (kudos to Brandon for the awesome class). Very best of luck with your investing pursuits.

Originally posted by @Linda Weygant:

One thing to be careful of is that you, as a direct lineal descendant of your father, have some restrictions when dealing with your father's self directed IRA.

Linda, you raised an important point that I'm unclear about. I'm also about to leave my 9 to 5 career and am considering rolling over my employer managed pension fund to a self directed 401K with checkbook control so that I may grow the fund by investing beyond ETFs (namely real estate). I understand that all proceeds from my investments go back to the SD401K, and the restrictions regarding family members using or buying assets belonging to my SD401K. So what happens when the day comes and I bequeath my estate to my surviving children and spouse? With these prohibitions, it seems counter-intuitive to me. Can I hand over the assets as well the monetary value of the SD401K to them?

Hi Dawn, 

I used an online listing service to post my property to the MLS. The realtor representing the listing service merely acts as a limited service agent.

Sam

Thanks for the feedback Dev & Gilbert. I actually listed only 1 of my 2 properties on the MLS and made no mention of a FSBO. But it's obviously a FSBO since I didn't indicate that I'm a licensed realtor on the listing.

I priced the property on the MLS based on CMA (what has sold and what's currently on the market), and based on the features and what's presently available, I think it's reasonably priced with very little margin. I did indicate on the listing that I will award a 3% commission to the buyer's agent.

I don't want to participate in any creative financing arrangements; I simply want to cash out on the equity I currently have in the properties. 

Perhaps I need to go back and take better photos that don't have all of the tenants' belongings. It's challenging trying to sell a tenant occupied property, and even more challenging when the only people talking to me are simply interested in positioning themselves for a guaranteed commission once a buyer comes along. I simply don't want to risk being tied down to a contract for 3 months or more with an agent who has no buyers.

Perhaps I may need to lower the price to the point where buyer agents can no longer ignore my listing... I don't know. The property has only been on the MLS since Memorial Day, so maybe I'm being too anxious or ambitious.

I think I'll give it another week, then make a decision to either drop the price further, or break down and make a deal with a listing agent. 

My goal is to close on both properties by the end of July.

Hi all. After holding onto and rehabbing 2 investment properties in the Northern Virginia area for a number of years, I am now trying to sell them. I've had little to no response to the MLS posting, but when I posted to Craigslist, I was inundated by realtors calling and trying to convince me to list with them.

I thought by offering a 3% buyer's commission, I would get a better response. Some agents suggested that they can do a more professional job of listing my property, and they are better positioned to leverage their connections to agents who have buyers. 

I also heard the full spectrum of opinions; it's easier to negotiate down than up, while others contend that setting my price below the market will stimulate a bidding frenzy. 

At this point, I don't know who or what to believe... listing my property at a fair price based on CMA doesn't seem to be working like I expected.

Would love to hear from my fellow BP colleagues to get a sense of their experiences.

A very interesting discussion thread, and while it is true that you will be hard pressed to find a positive cash flowing (or high cap rate) investment in the NOVA area, I found that buy and hold to be an effective investment strategy for this area. You will be building equity while having a tenant or roommate subsidize the purchase of your investment. This is especially beneficial if you can manage your own properties.

After 11 years, I am selling 2 rental townhomes in the Northern Virginia area. One is located in the Pinecrest Heights community of Annandale, close to 395 and Duke Street, and the other is located in the Carlyn Springs community in Falls Church (close to Bailey's Crossroads). Both properties have been fully updated and are completely turnkey, so you don't need to do anything but either rent them out or move in and start enjoying. 

They are both currently rented and will be vacated by the end of July. Current tenants have taken excellent care of the places, so they will be ready for immediate occupancy with little or no rehab.

You may view them on Craigslist here: http://washingtondc.craigslist.org/nva/reo/5055430...

and here:

http://washingtondc.craigslist.org/nva/reo/5054501...

These homes are not foreclosures, short sales, or flips, and the prices listed reflect a realtor commission. I am looking to sell these properties before the end of June and close by the end of July. I am open to reasonable offers, especially if we can forgo the realtor fees, so drop me a line if you're interested.

What is your exit strategy? Are you planning on flipping it or renting it out? How much do you need to rehab the place? Hard money lenders don't care about your credit, as long as the investment has potential, but if you're planning on holding on to it for long term, their fees are high and you will definitely want to pay them off as quickly as possible. 

If you plan to flip the property, make sure you've done your homework and can price it right so you're not holding it for too long., otherwise their fees can take a bite out of your profit margin.

You should certainly try to approach a bank to see if you can secure a home equity line of credit, but they may not give you all the money you need if your credit gets in the way.  Best of luck.

I have always been curious about investing in Baltimore. A recent visit to The Avenue (west 36 st) tells me that the area is poised for a renaissance. By the same token, there are so many neighborhoods where the majority of homes are all boarded up keeps me on the fence. 

From what I've heard on Real Deal meetup, Baltimore is a great place to buy rental properties because there are so many section 8 prospects, but not necessarily the ideal city for flipping. I'd be interested in hearing more and possibly joining forces with a group. Being a small time investor, I'm too scared to go it alone.

This sounds like an interesting situation. Just how motivated is this seller? What is the status of his lease with the tenants? If he's really motivated and he knows you're serious, there should be no issues with showing you the lease. If it's a standard lease agreement, there should be a clause for failure to pay rent. In Virginia, you don't need to go through hoops to evict a non-paying tenant (assuming the place is in VA). In any case, good luck and do please update us on how it goes.