All Forum Posts by: Account Closed

Thank you both for the insight! Turns out a local credit union in my home town will finance both units in one file. The underwriter said as long as the lots were side by side, it wouldn't be a problem. Appraisal has been ordered and I'm on my way!

Hello BP,

I quickly need your help and I'd love your advice on how to proceed with the pickle I'm in. Back in Nov '19 I signed a contract to purchase what I thought was a duplex. I'm planning on living in one side and renting the other. The contract was written by the builder's attorney who is also handling the title work and has both address' listed on the contract. Closing is June 30 and my lender JUST let me know that I need two separate contracts to move forward with them since it turns out these are two attached SF homes (not a duplex), with two lots, two parcel numbers, etc. My problem is that when I asked for two new separate agreements, the builder told me the price would increase somewhat significantly since he would have twice the costs to pay at closing. I guess this makes sense.. anyways, I need advice on how to obtain financing on the existing contract I have in place. Is this even possible based on fannie mae's guidelines? From my understanding, it's a specific underwriter's policy to require two contracts in this situation and it's not the law so to speak. I'd appreciate any and all feedback and let me know if I need to clarify further on any of the above. Big thanks in advance!!

Scott

Thank you both! I'm making good headway with a local CU. Terms seem fair and they're being very responsive with me.

@Pedro - you mentioned the manufacturer should warrant for a period of time. What do you think is fair? Also, in terms of modular construction, is there anything you recommend me paying special attention to throughout the process? What was your biggest 'learning lesson' when dealing with modular?

Hello BP,

I'm highly considering building a new 4-unit MF property on a piece of land I have and I found a great deal for the project with a modular construction company. My question; any recommendations on a lender for non-recourse debt? Appreciate any and all feedback!

-Scott 

I'm so very happy I read through most of these posts. I had an appointment scheduled for tomorrow morning to speak with him (or someone from the company), got all my cash ready to go and was eager to move forward with them. I owe you all BIG TIME! Thank you. 

With that said, does anyone suggest a reputable company or group of folks who have a similar model? Or is this just another 'too good to be true' REI idea.

I appreciate any suggestions/advice in advance!

I absolutely LOVE this read and feel every investor should read this (and your new book!) to get an overview and basic understanding of Economics. Then, apply it to their current exit strategies. 

Here's a brief 30 min. video I usually turn to for a quick refresher. This is Ray Dalio's explanation/opinion of the ECON cycle and I tend to agree with it.

https://www.youtube.com/watch?v=PHe0bXAIuk0

I agree, thanks Eric! Turns out the listing I originally read online was incorrect, the properties are not in the opportunity zone for tax credits. They're about 3 mi. outside of it. 

Is it common for a seller to say you can only site the property one time, only AFTER an offer has been accepted? To me this was a red flag. I can understand they don't want people coming by and disturbing the tenants but to say a buyer can only visit ONCE made no sense to me. 

Sorry guys, I should have elaborated more. My question is not about the numbers but the neighborhood the units are in, specifically Crystal Lake. The units listed were purchased in 2016 and are listed again for more than double the purchase price. Given the rehab work put into it, NOI vs all expenses and market rents in the area my, the numbers still work well for me. I grew up in Lakeland (now live in VA) and back then Crystal Lake was NOT an attractive area at all. I'm curious to know what has been done in or near the neighborhood in the past 5 years that drove the rents up? Did any new companies open up shop? Is there some local tax credit offering I'm not aware of?

In my mind, the neighborhood is C-  AT BEST but was looking for confirmation from anyone who knows the area well. 

Hello BP World,

First and foremost, I hope everyone had a fabulous Christmas yesterday! 

I'm looking to purchase my first multi-family property and desperately asking for someone's advice and/or feedback on 3 quad-plexes I'm analyzing in Lakeland, FL. My math is working out in a way that I feel it's a B- investment but I'm skeptical and hoping someone has the knowledge to push me one way or the other. Please message me directly so I can give you details on the deal(s).

Thanks,

Scott

Thanks Thomas. Can you elaborate a bit more on the $1200/ mo. loss and poor cash flow rate you mentioned above? This is the first opinion I've heard that our investment is a terrible one and I'd love to get underneath why that is.