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All Forum Posts by: Steven Goldman

Steven Goldman has started 15 posts and replied 514 times.

Sponsoring a meetup is more about event planning than real estate. So if you are organized you can plan the meetup.  If you spend the time, you will expand your connections and improve your knowledge. Ultimately, making you more capable when you make your first move. You might even find an investor with money, no experience, little courage and time, to team up with you . Sometimes, the difference between success and failure is all how you look at it. Take action. If nothing happens, nothing happens!

Post: Did I dodge a bullet or was I too suspicious?

Steven GoldmanPosted
  • Lender
  • Pennsylvania
  • Posts 530
  • Votes 459

@jonathangreene  Spot on!

Post: Affordable repairs and renovations

Steven GoldmanPosted
  • Lender
  • Pennsylvania
  • Posts 530
  • Votes 459

As an investor lender we see wide disparities in rehab. proposals from General Contractors. Rule number 1 is the contractor wants to get the job. Many contractors will under bid the job(Like a realtor over valuing a house, to get the listing) When the work begins hidden, or undefined work, results in a ballooning budget and disharmony between the investor and the contractor. I am suspicious of very low quotes. One of the ways to combat this is to get 4-5 proposals and never accept the lowest or the highest. There exist a myriad of good estimating software which will skew the pricing to your region. I always run my own estimate as a extra check on the reliability of the contractors proposals. 

Often your low ball proposal is not specific as to scope of work. You discover that the contractor only intends to use a single coat of paint, or reuse materials which you wanted replaced. Repair not replace the roof. So detailed scope of work is essential. All of the proposals should be for the identical job. Do not add, or subtract work, from your proposal requests or you may be unable to compare one to the other. Do not forget to get an estimated time to completion.  Time is money. Some of the lower priced contractors take on too much work. Your job drags on, causing you on your interest, or the time value of your money. 

Every professional that you work with should bring some experience to the table in the real estate and construction fields.  Your lender, broker, lawyer, banker or partner should all have sufficient experience in the real estate rehabbing and investment field, to help provide you the information you need to be successful. Good luck. Real estate is my passion. 

The Poconos in North eastern Pennsylvania still has  reasonable threshold pricing to enter the market. Close to New York and the NYC party location of preference. Carbon, Monroe  and other counties in PA. Ski areas, lakes and plenty of space to make noise. Gated communities to prevent over occupancy. Finally, second home conventional financing for your first purchase. 

Post: Leaving W2 Job and Getting Bank Loans

Steven GoldmanPosted
  • Lender
  • Pennsylvania
  • Posts 530
  • Votes 459
Originally posted by @Benjamin Aaker:

Hi @Joe Johnson and welcome to BP!

I am a physician and real estate entrepreneur. I have invested in others' deals and principaled my own.

Your physician friends will have significant cash but will want to know how you will get their money back to them. It's good that you have some experience and you will need to explain this to them. You found out that you can't secure the loan yourself so you are looking for one or more key principals. These people have to have a large net worth but also need to risk it in order to be the principal on your financing. Even though they might have no money in the deal, they are risking their income because if you fail, they are on the hook to pay the mortgage. Unless you find a sucker they will want at least 50% of the deal for the loan guarantee. You shouldn't have much heartache giving that to them as they are risking a lot on your word that you'll do a good job. 

I totally agree with @joejohnson. As a broker I advise my borrowers who need down payment assistance to form partnerships with a partner who can supply the capital. Obviously, you will want to make the best deal. In many cases surrendering a 50 percent share of the deal will be necessary. One hundred percent of nothing, is nothing.  

As an alternative, funding companies will lend you money without regard to your income. The rate is higher, but they underwrite their loans based on debt service coverage.(1.0 or greater) So you need the down payment, and closing cost money, but they do not depend on your income to approve your application. (You need six months cash reserve in order to be approved.) Good luck. Real estate investing !is a great journey! 

Post: Building Permit Process

Steven GoldmanPosted
  • Lender
  • Pennsylvania
  • Posts 530
  • Votes 459
Originally posted by @Wayne Brooks:

@Steven Goldman I did a lot split in WPB….3 months or so, close to $4k with survey being the majority…it’s not just a survey, they created the new lots, etc. 

I don’t think you’ll get a permit to build any non occupied structure, by itself, on the empty lot. 

Edit: I see they build “container homes”….I would absolutely have them acquire the building permits as the structures have to be properly engineered/certified. 

Post: Add a bedroom or not?

Steven GoldmanPosted
  • Lender
  • Pennsylvania
  • Posts 530
  • Votes 459

A three two always has greater market value. If you are doing it yourself it is a no brainer! Do it and good luck!

Post: Building Permit Process

Steven GoldmanPosted
  • Lender
  • Pennsylvania
  • Posts 530
  • Votes 459

First, congratulations on your properties in Delray Beach what a great place. My parents lived in the area for 25 years. Great beach, restaurants and music venues. I will miss Doc's drive in. I read that a number of developers have started building or demolition of structures without the cities permission which really pissed them off.(Especially if you are in the historic district.) So, talk to the zoning and building department to determine the building codes and zoning codes that will apply to your project.  Things always work better if you communicate with the city prior to construction and get them on board with your concept. Good luck 

I agree with every thing Wayne said.... My point was you need to find the product to match the problem. I know of multi family lenders that will do 5-8 units but you need at least 20 percent down. You should probably stay away from multi units if you do not have adequate cash reserves on hand or, available for contingencies. Good luck!

Good Morning: As a mortgage broker the most important thing is to know your projects and your products and be able to match them effectively. I believe the five unit is eligible for a HUD Multi Unit loan. Here is a description from their website:

MORTGAGE INSURANCE FOR RENTAL AND COOPERATIVE HOUSING: SECTION 221(D)(4)

Summary:
Section 221(d)(4) insures mortgage loans to facilitate the new construction or substantial rehabilitation of multifamily rental or cooperative housing for moderate-income families, elderly, and the handicapped. Single Room Occupancy (SRO) projects may also be insured under this section.

Purpose:
Section 221(d)(4) insures lenders against loss on mortgage defaults. Section 221(d)(4) assists private industry in the construction or rehabilitation of rental and cooperative housing for moderate-income and displaced families by making capital more readily available. The program allows for long-term mortgages (up to 40 years) that can be financed with Government National Mortgage Association (GNMA) Mortgage Backed Securities.

Type of Assistance:
FHA mortgage insurance for HUD-approved lenders.

Eligible Activities:
Insured mortgages may be used to finance the construction or rehabilitation of detached, semidetached, row, walkup, or elevator-type rental or cooperative housing containing 5 or more units. The program has statutory mortgage limits which vary according to the size of the unit, the type of structure, and the location of the project.

Eligible Borrowers:
Eligible mortgagors include public, profit-motivated sponsors, limited distribution, nonprofit cooperatives, builder-seller, investor-sponsor, and general mortgagors.

Eligible Customers:
All families are eligible to occupy dwellings in a structure whose mortgage is insured under this program, subject to normal tenant selection. There are no income limits. Projects may be designed specifically for the elderly or handicapped.

You should research a broker or lenders who can help you with this project. Over my years of experience I have learned that this is the best way to evaluate your financing options. Good luck. I love real estate!