All Forum Posts by: Tim Kelly

Thanks for the mention @Teri Feeney Styers 🙏🏼🙏🏼

Happy to chat or answer any questions you have about this game. Don’t hesitate!

Thanks for the intro @Will Wiggins!

@Stephen Hand, welcome to BP! It’s always amazing to have other active military guys see the benefits of real estate. 

Like Will said, there is an incredible local REIA... PIG.

Take advantage of it, as well as all the wisdom and knowledge on this platform. 

Feel free to send me a DM so we can link up for coffee. 

@Cody W., welcome! Trust me, you have come to the right place!

There is nothing but opportunity and BP has many tools to help get you started. 

I love the fact that you’re desiring multi family right from the start! Smart man!

Also, do yourself a favor and check out ADPI, as @Markian Sich mentioned. 

It’s an incredible platform designed for guys like us who are on active duty but have goals, massive goals, in real estate, as well!

Let me know what I can do to help. 

BP! 

Huge passive income opportunity!

My partners are I put together an incredible mobile home community deal together and are looking to close within the next 45 days.

As many of you know, mobile home parks offer incredible cash flow and explosive upside and THIS IS THE EPITOME!

Reach out to me if you're looking for a chance to get involved in this awesome niche!

Also, feel free to check out Podcast 282, where I was featured as a guest!

https://www.youtube.com/watch?v=VycHSn1W85I&t=24s

Andrew, we're using:

Charles James

Clark and Partington

He does both Pensacola and Mobile area.

Good Luck!

I will always emphasize, to anyone willing to listen, the 203k loan is arguably one of the smartest ways to get involved in real estate. 

There is some “red tape” and may take longer than expected once it’s all said and done; however, leveraging the bank to pay for not only the property but the rehab itself is mind blowing!

Let me know if you have any questions. 

@Jay Helms It is indeed!

@Mark Martin, can you send any financial data you have to:

[email protected] 

And 

[email protected]

Thanks for the mention @Jay Helms.

I did recently go through a very similar, very dissatisfying experience with a 4-plex. 

Unfortunately, the appraisal is one thing that seems completely out of your control. 

The banks will not take an income approach and if there are no like-kind properties around, it will be compared to the nearby duplexes, regardless if they are similar in year built, condition, sq. footage, etc. 

I know you’re attempting to refi our to pay the line, but if you don’t, and you don’t get  it appraised for what you want, can you still hold for cash flow, and perhaps appreciation?

The only other thing I’d recommed... request comps from a few different agents in the area who support you and can help provide market analysis’ to the bank of any other triplexes that may not be close by, by in the zip code or even city. 

If not, it’s not the only one out there, lesson learned, on to the next!

@Jay Helms, thanks for the connection. 

@Kole Kingslien, about a year ago, I purchased a 4-plex with asbestos siding using a 203k loan, so here’s what I experienced...

The asbestos siding (at least mine) is not dangerous to health, like many people believe the insulation. 

Some of the shingles were actually in need of repair, so our contractors had to remove and replace them or reinforce them. 

You shouldn’t have anything to worry about at this point; but I cannot allow this to be a blanket statement for every house with asbestos siding. 

Your contractor and home inspector should give you the details on how to proceed. 

Let me know if you have any questions. Good luck!

Hey Brandon,

Thanks for the connection @Jay Helms!

Congrats on deciding to use what I believe is one of the absolute best tools to get into the investing game. 

I leveraged a 203k loan last year on a 4-plex and yes, there is a bit more red tape than a traditional loan, but it was completely worth it. 

Just like when you are searching for any other vendor/team member to complete a real estate transaction, you can find your contractor here on BP, at your local REIA or other networking events, and simply asking around... make sure everyone you talk to knows what you are looking for.

One you’ve identified your GC, the final bid has to be approved by the GC, you, and the bank, all before closing. 

Once you close the loan, the rehab will begin. Once the contractor is ready for one of a few “draw checks,” they will send a request to you and the bank to approve. 

The bank will send an inspector out to the property to ensure the work stated to be completed, was indeed done. The bank will issue you a check to sign and hand over to the contractor if you believe the work was adequately completed. 

Some tips... try to include as much as possible into the bid. I’m talking the details. Unless you anticipate going in during or after the rehab to do it yourself, make sure you include in the bid, things like:

- Trim

- Painting 

- Light fixtures/fans

- All floors and surfaces as you imagine the tenants using

- Landscaping 

- Etc. 

I say this because once the loan closes, and the rehab begins, if it is discovered anything needs to be changed or added, a “change request” must be submitted to the bank from you and the GC.  

FHA guidelines state the changes MUST relate to health or safety, or they will not be approved.

I can go on forever with tips! But just know this a great tool to become a homeowner, an investor, and a landlord, all in one deal. 

Message me if you have any other questions. Good luck!