All Forum Posts by: Tim Davis

Issue 1: I own a 1.3 ac commercial parcel in Fallon, NV which has zero inventory available and desperate for housing. I am planning either a 3-story 27 unit apartment building OR if I can purchase the combined 0.8ac parcels on each side of me, construct a gated condo community with end to end road access. One owner is a wealthy casino owner who collects land and may consider selling but for way more than its worth. He paid for it back in late 90s. His break even number may not feasible to me. The other side is a closed laundromat with building and approach that would work perfect. The real gem is that utilities for a laundromat is behind the curb and could work as my utilities. This would save a ton on running them in from the street. The owner paid $150k in 2003 and was an operating business. Now is .14 acres and worth maybe $30k. We cant agree on a price or terms yet. 

Question 1: Whats a good creative way to get them to sell these lots either outright or as a short term investor and can buy them out when the construction loans turns to mortgage? Open to any options

Issue 2: I'm a building inspector and a residential property landlord. I can inspect it and pay someone to manage it but I am on a steep learning curve for building it. I have a business plan, positive feasibility, relationship with a number of contractors and even the city officials. I still need to find investors and probably one partner.

Question 2: What is next step here...architect? Or do I want to take a general concept and start working on getting the funding under way? I ask cause an architect costs money and Im not rich. Yet a bank needs more than basic concept. I want to make sure this process happens in the right order, so i dont lose my *** and instead have a beautiful income producing asset. There's all sorts of videos and books that say do this and do that but Im convinced if you spend a ton of time on telling people how to do it, then your probably not doing it. Those who cant do, teach. 

Thanks

Tim

In the process of putting a deal together for an 29 unit apartment building on my property. Need to get the investor pool and lending put together. Any good recommendations on multifamily construction loan lenders working in Nevada? Any advice would be appreciated.

Yes sir that’s exactly the idea. Rent the existing, buy a new out of state. I work as a structural inspector so I can find a contract project. Stay a year at least then come home. I should aim for a 2-4 plex to make it worth my while to leave a six figure career for some sanity. Thank you!

Hi everyone,

My wife and I live outside of Reno and we have a primary home with a conventional loan at 2.5% interest. Two months ago we lost our youngest daughter and have hit a point we need to escape our hometown for a while. Search for purpose in life I guess. Either way we have money to invest but with the current state of the market and lending, we are holding back. However there is a sense of urgency to leave. We would like to house hack somewhere for a year but then return to our home here in Nevada. Finally the question. Can I still get approved for an FHA primary home loan with an existing conventional loan of my primary? If I just rent the our current home out and move, can I deem it as a secondary home? Any assistance would be helpful to a couple of broken people. Thanks folks.

We are looking to get a HELOC to use for a BRRRR. Our mortgage is $243k with home value of $420k. Our mortgage was just bought out by PNC from Amerisave. We looked at getting it through PNC or Bank of America which we have used to pay our mortgage from for years now.

The problem is reviews for both PNC and BofA regarding HELOCs don’t offer much comfort. Both have really bad reviews. Can anyone offer some options for a good lender open to working with investors?

Thanks

(Actually in Goodyear AZ - wasn’t on list) So my parents own a 2bed/2bath 1440 sf property in Pebblecreek golf community. Their house has a 280 degree view of the 1st fairway. This house is beautiful and was used for many years on Pebblecreeks flyers. Per Pebblecreek it is one of the top 3 views in the entire community. 
My parents are snow birds and use the house from November to April every year and have for the last decade or more. With kids, grandkids, great grandkids and age they are considering getting rid of it. I told them I want to buy the house. Now yes I would inherit it eventually but not if they sold it or my sisters got it. They would sell it and take the cash. 
The house per Zillow is worth $579,000 which is low if you have saw the inside and remodeling done. Not to mention the golf cart garage and landscape added. It’s well worth $600,000. They bought for $300,000 way back when so they have $300 in equity. 

Now I live near Reno and have a full time career up here. I can't cover both mortgages although my parents have said they will give me a good price. I am told that this area can collect some crazy short term rental rates most the year but around spring training can get up to $5000 a month. The STR comps I find sit around $4000 for a minimum of 1-3 months. The LTR sit around $2500 a month.
I wanted to pick the brain of people smarter than me. If you had this opportunity, how would you structure the purchase to afford keeping it as a rental? Long or short terms. I am working on numbers but just looking at others opinion here.

Thanks

Hi Dawn,

My wife and I have been working on building a 120 unit storage facility in Northern NV for the last year. The 1.6 acres was gifted to us and we will eventually inherit a 110 unit facility next to our lot. We have Civil plans completed and working with Mako Steel to construct. It’s consists of five buildings with 4 exterior entry and 1 interior entry. We do have a great concept in mind which will change the game in our location. Were designing and building climate controlled exterior entry units. How were designing is even cooler. Our biggest hurdle which is beyond frustrating is completing a 40’ lot line adjustment and cross access easement. We can’t complete financing until this is done although at this point we are probably going to aim for partnering or private funding. It sounds like it’s finally moving through the city council.
We won’t be at BPCON but contact me anytime to discuss what we’re doing as it may help and give you some ideas. Here is our general concept….minus the trees. We’re in the desert. We wish we had trees like this. :)

Cheers

Tim & Maci

@Chris Blackburn

Thanks for response Chris. Didn’t notice anyone responded. Any progress on your project?

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $2,000,000
Cash invested: $200,000

This is not a purchase but a new development consisting of 2 8-plex buildings. In engineering phase and holding until lumber prices and labor shortage level out.

Thank you both for your responses. The learning curve on financing can be daunting. The purpose of the question is in relation to building 2 8-pled apartments on a parcel I own. The town is desperate for housing with no available rentals. Prime opportunity in a growing area. My problem is down payment. Based on my figures before the current rise in materials prices was approximately $1.9M. With the land worth roughly $110k that still leaves me with a substantial chunk of capital to come up with. Since this post we have pulled back waiting for material prices to level out. Last week lumber came down 40% so we are back on. I may have some more questions from people smarter than me like yourselves. I hope as I go along I can move forward with some better knowledge.