All Forum Posts by: Shawn Dandridge

I am in Frederick, MD. I know most counties in MD require new construction and major upgrades to include sprinkler systems. Like you stated, you want to verify with your own locality on the specifics.

@Curzon Peier

I know a guy that may be able to help but he will charge you 12-14% on the loan, 2-3 points. Let me know if you want his details. 

Another caveat, one of my best friends lives in a pretty nice neighborhood in the 38018 zip code. He just had his car left on 4 bricks in his driveway a couple of months back. So as far as Memphis is concerned, the crime isn't concentrated in the inner city zip codes anymore. 15 years ago when I lived in 38018 as a kid, there was virtually 0 crime, same for Hickory Hill back in the early 90's when I lived there. Not the case for any of these places anymore.

The number one mistake I see people making about Memphis is using a zip code to generalize an area. If you pull a police report on 2/3 zip codes in Memphis the crime report will be 20 pages long. I grew up in 38126 which many would consider a war zone. We never had a break in, mugging, shooting, ect on my street in my entire life. This was even true when LeMoyne Gardens, one of the biggest projects in the city was a block over. You have to take a street by street approach with Memphis, generalizing zip codes will leave a lot of money on the table. I do understand that most people are afraid of Memphis in general and will never venture into these "warzone" zip codes. I grew up in 38126, 38106, 38109 area so I know what really happens in these places.

@Brian Adams

I am not 100% certain that I will do the deal but it seems promising on the outside. I'm making a trip to Memphis at the end of the month to get a firm grasp on the entire scope of the project. I will know for sure what will happen after that visit. I thank you for your thoughtful and sound advice, this is why I love these forums!

@Brian Adams

My exit strategy is to fix and flip. I have been talking with a HML I've done a previous deal with and they're willing to a piece of equity to lower the lending costs over the term of the loan. Based on the prelim discussions we have had this will significantly lower the loan costs without giving up too much equity (5-10% equity for them at most).

@William Wong

There aren't any types of special protections for foreign buyers investing in the US real estate market. You'd have the same avenues as American's have, which is the court system.

My wife and I have been thinking about buying a small 1 bed condo on Galveston for a weekend getaway and to rent the remainder of the time. Looks like you can get some nice ones in the 65-70k range right off the seawall. Does anyone currently own a condo in Galveston? If so, what are your monthly expenses (i.e. insurance, condo fee). Thanks!

@Joel Owens

Thanks for the information. I am looking at a hard money I/O loan to finance this deal.

Roy,

I have a pretty good idea why the taxes are 30K in arrears. Like I stated, the property has significant deferred maintenance and no one wants to stay there. The only reason she has tenants now is because the rent is around 200-250 per month compounded with a 40% vacancy rate there is no way she can pay most of the expenses. This is still a great opportunity IMO.