All Forum Posts by: Shawn Devoid

Thanks for replying @Alex Deacon.  Since I originally posted, my husband got a promotion here in Tucson, my father just died in Iowa leaving me two run-down (but i think could be cute) houses, and I have a condo that needs a total make-over and sale in Vermont, so I don't think I'll be headed there anytime too soon!

You never know though- I may end up looking you up again someday!

@Jared Stroebele.  Good on you for coming up with an action plan!  Even if it doesn't work out, it's an excellent exercise for learning the ropes.  Look forward to hearing more!

Also, if you haven't already, try looking at Zillow in the area.  It might have the condo sales prices, as well as links to the tax assessors website so you can have a little background before calling the agent.  

Another tip, if you call the agent yourself, be sure to state right away that you reserve the right to have your own agent.  The agent may not be willing to answer your questions.  That's ok.  If you aren't already working with an agent, then you may not understand how it works.  Basically, if you contact the agent yourself, the seller's agent will represent both of you in the transaction and take both commissions (which the seller pays).  That means you won't really have someone in your court when it comes to negotiations or if there are problems during the transaction.  I suggest you get your own agent (the seller pays their fees).  Additionally, if you do decide it's something you want to pursue, you'll probably want to run everything by a real estate attorney.  It will be a little money out of your pocket, but as a developer, you probably don't want to take any chances.

Hi @Marian Smith.  It's all local and it's all based on comparable sale prices.  I wouldn't think Zillow or anyone else has put together anything of much use on a small, local scale.  Your best bet is to comb through "closed" sales.  Using comparable square footage,  compare the ones with redone kitchens and baths to ones in the same neighborhood with old kitchens and baths.  Three bedrooms to four bedrooms.  You get the idea.  In my area, I know appraisers add $15,000 for a pool, $2500 for a built-in spa, $10,000 for another garage space.  They observe the materials used in the home and make calculated adjustments.  They adjust for views, landscaping, and other amenities according to their judgement.  As far as a community pool or other community amenities like gates or guards, everyone in the community has them and the appraiser will probably only use comparable from the same community, so it's a moot point.

If you have a burning question, don't be afraid to call a local Realtor and just ask.  You might even find one here on the site that you can PM.

Another tip, pay attention to homes that have been "flipped".  Be on the lookout for homes that have sold less than a year before and pay attention to the work that's been done and what the price difference is. 

Hi @Kevin Andrews.  It all depends on the deal you have structured with your seller.  What do you want to do?  What does he want to do?  If he'd rather have the cash, then he probably won't penalize you for early pay-off.  Usually there's a six month seasoning period between purchase and refinance.  I suggest you find a local lender now and ask these questions so you don't end up with a bad surprise down the road.

Hi @Jared Stroebele.  Your post caught my eye because I'm originally from Iowa and lived in Des Moines for a couple years after college.  When I first read your post, I had no idea how to answer it (& wasn't even going to try!).  But I'm glad I clicked on your links.  It looks like somebody already started a development there and there are already existing condos in the area.  I would give the real estate agent a call and see what's up.  If they've already poured foundations and there are already similar units in the neighborhood, they probably already have the plans.  They probably know how much it cost to build the other units (or can direct you to the builder).  I would look up the neighboring addresses and see who built them, who owns them now, etc.  I would also ask why the developer is selling them off partially finished instead of finishing them himself.

The realtor (or their client) might also be able to direct you to financing.  If not, try local banks and credit unions.  If they don't do purchase and build loans, ask if they know someone who does.  Ask about the terms of the loan.

In the meantime, google all you can about condo development and read up on local regulations pertaining to condo development.  It's a pretty big undertaking for a new investor, but I applaud your gumption!  Good luck!

Thanks @Patrick Allen.  I had been planning to go, but a condition that I thought was under control flared up.  I'll definitely try for next month.

Hi @Patrick Allen and @John Powell. I'm in Tucson, too, and looking to network and learn, as well. I haven't been to the Tucson area REIA yet. My husband and I weren't sure if we were staying in the area (his work), but now that it looks like we'll be here for a while, we plan to acquire our first deal in the next six months or so. Let me know if you guys would like to get together sometime.

I think it's all been said, but when I read the title of your post, I was thinking it could also be named, "How late is too late to fire your property manager?".

I would wait until you (a) know what you're going to do with the money- like maybe partner up or (b) have enough cash-out for your next investment

Otherwise, you're just paying $4,000 closing costs for $14,000 that's just going to sit around not collecting much interest.  Maybe somebody else can chime in, but 5% closing costs for a refi seems a bit high to me.