All Forum Posts by: Frank Gucciardo

It's offered in bulk at a certain price because economies of scale come into play.  The bank can package several hundred or thousand loans together and do one negotiation/sale with a single or  group of institutional buyers.  

Now, if the bank has to negotiate each loan, with individual buyers, they lose the economy of scale and the cost to transact the business becomes prohibitive.

Hi Everyone

I'm looking to connect with wholesalers (wholesellers?) who are operating in the Hudson Valley.  I'm trying to open up new channels to find multi-family homes for buy and hold.

PM me as I would love to connect and discuss how to get on your lists.

Thanks

Hi Barry, Welcome to BP.  I'm right across the bridge from you.  We should catch up sometime soon.

 Mark,  while I agree with your statement for a flip where I would have a contractor crawling around the place to come up with an quote I disagree with you on a buy and hold property.  I wouldn't move forward with a B&H purpose without a full inspection.

Just curious, what did you spend those 2,000 hours doing?  

Not trying to be sarcastic, I'm seriously curious what your time was focused on?  I think it would be a good learning experience all around to get a better understanding of how you spend your RE time.  I think everyone does it differently so there is no real right or wrong answer.

 Mark, good question.  A little more detail on the timing.  There was no sewage smell when we initially visited the house with my agent and again when I went poking around the outside of the house looking for issues.  The house was winterized by the bank and was not de-winterized until the day before the inspection.  The smell did not show up until the inspector came and started to put the mechanical systems through it's paces which is what prompted my further investigation.

In the future, on properties that have well and septic, I'd likely do that due diligence before bringing the inspector in and spending the money.

Since, on this property, we didnt know if the well/septic would be a deal killer the inspector did all his normal inspector stuff.. checked out the entire electrical system (boxes, gfci, etc..), Boiler/water heater inspection, foundation, roof, ventilation, sufficient insulation, fire saftey issues, etc..  The education I received from those three hours will carry over into other houses that I look at.  I'll likely have a more critical eye towards some things before I get under contract.

We are dealing with a lot of older housing stock here in the NE so inspection is critical.

So close on our first buy and hold purchase.

FannieMae Homepath Tri-plex that we got under contract for 160K.  The numbers worked out really well.  Not much work to be done, just a re-paint and I was going to replace all flooring with laminate. 

Waited for our inspector to get back from vacation and had the inspection on Tuesday.. the wheels came completely off the deal, and thank god for our awesome inspector.

the house inspected well, electric was great, structure was good (1950s house), roof only 10 years old.  Great, going to finally get this business off the ground...... except for that lingering smell of sewage outside.  

Come to find out, the property had and old school cesspool that failed back in 2007 (had to call the local septic company and they had records for the property).  Looking at a 30K fix, it was time to cut bait and run.  To compound the problem, the well was only producing enough for a one family and may have been cross-contaminated by the failed septic.

Moral of the story - always get an inspection.. it was worth the $350 we paid (no report only a walkthrough) and you get tons of education on things to look for and test when looking at a house.

I've also learned that I don't want my first property to be on well and septic if possible.

Just thought I'd share

20-25pct down on multi-family is average for conforming loans.  Are you going to owner occupy?  

Welcome Kelly

I'm located in Highland and getting started as well.  One buy-and-hold triplex under contract at the moment but planning to grow exponentially.

There is a good REIA meeting held in Poughkeepsie on a monthly basis. Just google MHV REIA (not sure if I can put in the website).

Let me know if you ever want to catch up and best of luck.

No dog is inherently violent unless they are raised to be violent.  It really depends on the owner and your screening process.  Honestly, anyone who raises a dog to be violent would likely not be a good tenant.