All Forum Posts by: Tal B.

Hi all,

My name is Tal and I am new to the business. I am starting out now and DC is the area I am looking into.

I was wondering if there are any DC investors here. Perhaps I can draw from some of your experiences. How do you find the DC market for flips? What in your opinion are good neighborhood to flip? Is there a good investor association in DC that I should check out?

Any insight would be greatly appreciated. Most of all, I wanted to introduce myself and meet fellow investors.

Thank you!

Tal

Hi all,

I am a new member to BP. Have learned a lot in the short time I have been here.

I have decided to partner up with friends and start a flip and fix business in Washington DC. Prior to that I was focused on upstate NY but decided to change course.

I am trying to look for distressed properties there. Interestingly enough I have been told by my realtor, that DC has a law which forbids banks from foreclosing on homes. I was pretty amazed. What incentive does a homeowner have to pay his mortgage (other than hurt his credit). 

Does anyone know something about this? For those who operate in DC, what is your MO for finding distressed properties?

Thanks! and again pleasure to be part of such great investor community.

Tal

I will be there. Thanks @Darren Sager 

Is that confirmation enough or should I sign up formally somewhere?

Thanks,

Tal

Hi all,

Has anyone read or can give me his opinion about the book and its other?

I'm thinking of buying it.

Thanks!

Tal

Hi Jim,

Thanks for the quick reply and for being forward. I appreciate it. You are right on the money, literally... As you can tell by my questions, I am a novice and I've been asking myself (and am still asking myself) if I should foray into development when I'm doing my first steps in the field. That said, I am a fast learner and I have legal background. My friend has been doing development for some years now and most of all, he needs someone whom he can trust.

However, I still need to be very careful. We do have some serous investors backing us and my friend has established good relationship with banks. As for personal guarantees. I will only take the project if it is non recourse. If we can't get such terms, I will not go through. I do not know if banks are inclined to do so in today's market but I will try.

Thanks so much,

Tal

Hi Everyone,

My name is Tal. I'm new to BP and also to the real estate development world.

Excited to start here and I hope I can get some useful information and make some friends.

I have a friend who wants me to partner with him on the development of a 40 unit residential building. We estimate the development to be in the millions of dollars. He has investors who will supply the financing and we will take also bank financing (about 20%-30% equity).

He wants me to take charge of the project, which is still on paper and coordinate everything. He will still be involved of course. I imagine this will take at least half of my work week (You can tell me if I'm right or not) .

It will take about 1.5-2 years to complete the project. The apartments will be for rent (i.e., we count on cash flow from rentals). Also there may be other projects in the pipeline. We need to come up with a fee for myself. It will be a combination of salary and equity rights. I am not required to bring any equity of my own.

Here is where you can advice me: What is the acceptable developer's fee for this kind of project? What should I ask for? What does it depend on? A percentage of the total cost? How to allocate salary and equity? (most of my income will derive from the project). If there was a discussion or an article about it, I apologize for not noticing and will be happy if you can refer me.

Thanks a lot!

Tal