Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Tommy Adeoye

Tommy Adeoye has started 9 posts and replied 152 times.

Post: Shaping proptech innovation through your input

Tommy Adeoye
Pro Member
Posted
  • Investor
  • Posts 156
  • Votes 77

Absolutely @Jonathan Klemm ! The feedback is greatly appreciated.

I should have been more concise -, the goal is to shake things up and elevate the tools available to real estate investors like yourself. We're talking about CRMs, lead gen platforms, and deal analyzers—the whole kit and caboodle. While there's no shortage of options out there,as you mentioned, such as PropStream, DealCheck, REI Simpli, and Podio, the aim is to stand out by honing in on what really matters to investors: ROI, value, performance, efficiency, and possibly price.

Expanding on what matters as outlined earlier, here are my assumptions regarding what investors might require if I were to launch a product today:

User-Friendly Experience: A platform that feels like second nature to real estate investors, with intuitive design and features that make life easier.

All-in-One Solutions: A toolbox stacked with everything necessary for successful investing—from finding leads to analyzing deals and managing properties.

Seamless Integration: Make workflow smoother by seamlessly connecting with other essential tools and platforms you rely on.

Insightful Analytics: Next-level decision-making with advanced analytics and data visualization that help you optimize investment strategies.

Now, the challenge lies in the fact that every investor is unique, and the features might be excessive if they don't offer genuine value. The platform must align with  investors' specific needs and preferences.

Ultimately, the mission is to flip the script on prop tech and deliver a game-changing solution that tackles the pain points investors face head-on, empowering investors to reach their investment goals with confidence and ease.

But here's the thing—we can't do it without investor participation. Firsthand experiences and insights are what would guide us in the right direction.

I am urging REIors to unleash the floodgates, share theirs thoughts and on that one thing that would make investment journey smoother. Feedback is like gold dust, essential for sculpting the future of proptech software.

You see what I am saying?

Post: Shaping proptech innovation through your input

Tommy Adeoye
Pro Member
Posted
  • Investor
  • Posts 156
  • Votes 77

We're on a mission to make investor's lives easier and investments more successful. But we can't do it without you! Yep, that's right, we need your help.

So, which tool in your real estate toolbox do you swear by? Maybe it's CRMS, or perhaps those deal analyzers are your go-to. Whatever it is, we want to know!

Now, let's talk frustrations. We get it, the REI journey isn't always smooth sailing. What's been bugging you the most? Whether it's paperwork headaches or communication mishaps, lay it on here.

As we dive into brainstorming a brand-spanking-new prop-tech platform, we're itching to hear your wish-list. What features would turn your world upside down (in the best way possible)? Tell us how your life can be easier, more profitable, and just plain better.

Oh, and about those fees... We're all ears. What kind of fee setup would make you jump for joy?

Your input is absolutely crucial – it's the secret ingredient to REI's success. No product can genuinely thrive without meeting a user's pressing need.

Take a sec to share your thoughts, experiences, and dreams for the ultimate for future real estate tool. Let's make magic happen together!

PS. Remember, if for any unforeseen circumstance we don't develop it, someone else might stumble upon your ideas here and make theirs even better.

Post: Boutique Hotel Investing - Financing

Tommy Adeoye
Pro Member
Posted
  • Investor
  • Posts 156
  • Votes 77

Fantastic transition from STRs to boutique hotels. Where better than Richmond, VA, a promising location for such an endeavor? Your case is indeed a challenging one, especially when traditional lenders are hesitant.

Here are a few avenues folks often explore in times like this:

You are already on this path - Owner Financing: It's great that the seller is willing to finance a portion of the deal. Stretch the terms or better still negotiating favorable terms with the seller could significantly ease the burden of acquiring the property.

Private Investors: As of December, the stock/forex market are performing bullishly. Remind them , how they felt back in July and how your deal edges against the amount of cash pumped into the economy (inflation). They might be interested in partnering or providing funding for your project. 

As mentioned by @Chris Mason, Bridge Loans: These short-term loans can provide immediate financing until more traditional financing becomes available or until the property stabilizes and becomes more attractive to lenders.Interest rates and stipulations may be a pain.

Out of the box here and requires a few more research, SBA Loans: Small Business Administration loans can be an option, especially the SBA 7(a) loan program, which can be used for hotel acquisitions.

I heard someone  mention - Mezzanine Financing: it involves a combination of debt and equity financing, which might appeal to some investors looking for higher returns. Not sure if this appeals to you

Joint Ventures: Partnering with a larger hospitality group or another investor might not only bring in funding but also expertise and industry connections. 40% of a deal is better than no deal. Reverse engineer the list of most recently acquired hospitality business built or bought within the 30-40mile radius, You’d be puzzled at how much capital they have to play with.

Crowdfunding or Real Estate Syndication: Platforms dedicated to real estate investment might have investors interested in backing a boutique hotel project. Your project may not have enough meat in the bone for syndication but if it scales, why now explore.

    Caveat: each avenue comes with its pros and cons. However, weighing your options and performing due diligence carefully based on your specific circumstances, the property's potential, and your long-term goals. There should be some financial advisors or real estate attorneys on here around your area who specializes in hospitality ventures and might provide valuable insights tailored to your situation. These guys operate like flies on the wall. Best of luck pulling down that boutique hotel.

    Post: 203k FHA construction loans - and use cases

    Tommy Adeoye
    Pro Member
    Posted
    • Investor
    • Posts 156
    • Votes 77

    As @Paul Welden mentioned, if you are a homebuyer or homeowner looking to finance both the purchase or refinance of a home and the cost of its rehabilitation or renovation , the 203k FHA construction loan program is a popular choice. So think fixer upper or upgrade of existing property.

    FHA Construction to Permanent (C2P) loan on the other hand, also known as an FHA One-Time Close (OTC) loan, is a mortgage financing option that combines the features of a construction loan and a traditional mortgage into a single loan. 

    Here is how the 203(k) FHA Construction Loan Works:

    Loan Types: There are two main types of FHA 203(k) loans:

       - Standard 203(k): This option is for larger renovation projects, including structural repairs and major remodeling. It involves a more extensive application and documentation process. You’d be buried in paperwork’s.

       -Limited 203(k): Designed for smaller projects with a maximum loan amount of $35,000, such as cosmetic upgrades and minor repairs. It generally has a simpler application process.  

    Property Eligibility: The property being financed must meet certain requirements, and the repairs or renovations must be intended to improve the home's functionality and value.

    Loan Amount: The loan amount is based on the home's after-repair value (appraised value after renovations) plus the cost of repairs or renovations. There are limits to the loan amount, which vary by location.

    Loan Terms: The loan terms for 203(k) loans are similar to those of typical FHA loans. You can choose fixed-rate or adjustable-rate mortgages, with typical terms ranging from 15 to 30 years.

    Renovation Process: After closing on the loan, the renovation or repair work can begin. The funds are typically held in an escrow account and disbursed to contractors as the work progresses.

      Interest Rates:

      The interest rates for FHA 203(k) loans are typically slightly higher than those for regular FHA-conforming loans. The exact rate you'll receive can depend on various factors, including your credit score, the lender you choose( lender shopping is highly recommended), and market conditions at the time of application.

      I re-emphasize,It's important to shop around and compare rates from different lenders to find the most competitive offer. Since FHA loans are backed by the government, interest rates tend to be more standardized across lenders, but there can still be some variation. Look up posts on here that talks about how to negotiate with lenders, you may draw some inspiration.

      Also, Keep in mind that while the interest rates may be slightly higher, the 203(k) program allows you to finance the cost of repairs and renovations into your mortgage, which can be a significant advantage if you're looking to make substantial improvements to a property.

      Overall, before applying for a 203(k) FHA construction loan, it's a good idea to consult with a qualified lender who can provide specific information about rates and terms based on your financial situation and the property you're interested in. Additionally, be sure to thoroughly understand the program's requirements and process to make an informed decision about whether it's the right fit for your renovation project.

      Post: A few questions about duplex new construction.

      Tommy Adeoye
      Pro Member
      Posted
      • Investor
      • Posts 156
      • Votes 77

      Congratulations on completing your quiet title action and being ready to build! Here are some answers to your questions:

      1. Before you begin interviewing builders, there are a few things you can do to prepare:

      - Have a clear idea of what you want to build, including the size, layout, and materials you plan to use. This will help you communicate your vision to potential builders and get accurate estimates.

      - Get a survey of the land done to ensure that you have accurate property lines and understand any potential limitations or obstacles (such as easements or zoning restrictions) that may affect your building plans.

      - Research local building codes and regulations to ensure that your plans comply with all relevant requirements.

      2. Estimating the build cost can be tricky, as it will depend on factors such as the size and complexity of the project, the materials used, and the labor costs in your area. One approach is to get multiple quotes from builders and use those to create a budget. You can also consult online resources (such as the Building Cost Estimator from HomeAdvisor) to get a rough idea of average costs in your area. It's important to be as detailed as possible when creating your budget to ensure that you don't run out of funds halfway through the project.

      3. Some things to look out for include:

      - Hidden costs or unexpected expenses (such as permit fees, utility hookups, or unexpected delays) that can add up quickly.

      - The reputation and experience of potential builders - make sure to check references and look at past projects to ensure that the builder has a good track record. 

      - Any potential legal issues (such as zoning restrictions or easements) that could affect your building plans.

        Overall, it's important to do your research and plan carefully to ensure a successful build. Good luck with your project!

        Post: Cost to Build in Worcester, MA Currently?

        Tommy Adeoye
        Pro Member
        Posted
        • Investor
        • Posts 156
        • Votes 77

        I have been playing around the construction space for a while and I hope this little token helps.

        Regarding the cost to build in Worcester, MA, it can vary widely depending on factors such as the size and complexity of the project, the materials used, and the contractor you hire. According to HomeAdvisor, the average cost to build a new home in Worcester is around $296,000, but this can range anywhere from $169,000 to $427,000. Alternatively, you may be able to get an idea looking at comps for single family but a different underwriting may be required for commercial multifamily. What you are trying to put on the lot and what zoning allows plays a huge role. Density analysis helps. 

        As for a down payment on a construction loan, it can also vary depending on the lender and the specifics of your project. Typically, construction loans require a down payment of 20-30%, but some lenders may offer more flexible terms. It's important to shop around and compare offers from different lenders to find the best option for you. Local banks in Worcester, MA may like the deal better.

        There are some creative ways to reduce your down payment, such as getting multiple quotes and working with contractors who offer competitive pricing. You can also work to increase the value of the property by using sustainable or energy-efficient building materials, which could potentially increase the appraised value of the property.

        In terms of BRRRR (Buy, Rehab, Rent, Refinance, Repeat), this strategy is typically used for existing properties rather than new construction. However, it's possible to use a similar approach with new construction by refinancing the construction loan once the property is complete and rented out, using the proceeds to pay off the construction loan and potentially even pulling out additional equity for further investment.

        I hope this information is helpful! Good luck with your project.

        Post: How To Find Land Value?

        Tommy Adeoye
        Pro Member
        Posted
        • Investor
        • Posts 156
        • Votes 77

        Another option is to look at the property's assessed value on the county website and subtract the estimated cost of demolishing the destroyed home and any other cleanup costs and 15% unforeseen. The assessed value may not reflect the true market value of the property.

        Post: Florida - Where should we look?

        Tommy Adeoye
        Pro Member
        Posted
        • Investor
        • Posts 156
        • Votes 77
        Quote from @Michael Simmonds:

        Good morning BP,

        My wife and I are looking to 1031 our Ohio rentals into a property in Florida. We current ly have two new constructions under way in Cape Coral with Rent to Retirement. We like Cape Coral but we want to select a different market for this deal to avoid  having all of our eggs in one basket. For the 1031, we are looking for a property in the 450-550k range. 

        Can anyone recommend some strong markets with the potential for cash flow and appreciation in that price range? Any feedback would be greatly appreciated. Thank you!!


        Definitely not a financial or investment advice but some general guidance for consideration.

        Some of the factors ( A few I think you already are aware of ) I look for when evaluating a market include:

        •  Population growth and demographic trends
        • Job and economic growth
        • Rental demand and vacancy rates
        • Property taxes and regulations…@Patricia Steiner laid this out brilliantly.
        • Overall real estate market conditions

        Based on your budget and investment goals, you may want to consider mid-sized cities with strong economic growth and rental demand, such as Austin, TX( There is a new Samsung plant brewing in Taylor,TX); Nashville, TN; Charlotte, NC; or Raleigh, NC. These markets have experienced significant population growth and job growth in recent years, which can translate to strong demand for rental properties. A real estate data analyst is gradually becoming a developers’ best ally or must I say significant member of his development team.

        I have also found qualified and seasoned real estate agent , who has experience with 1031 exchanges to be a valuable resource in providing market-specific insights and recommendations.

        In addition, you can also leverage online tools and resources to research and analyze potential investment markets, such as real estate investment websites and databases, local news and economic data, and demographic and rental market reports. Don’t have time, a few reliable freelancers can do the leg work on your behalf.

        Overall, As cliche as this may sound, real estate investing involves risk, and I admire your proactive move in evaluating properties before making any investment decisions. 

        Good luck with your 1031 exchange!

        Post: Land For Sale in Subdivision (residential single family)

        Tommy Adeoye
        Pro Member
        Posted
        • Investor
        • Posts 156
        • Votes 77

        Allow me to start off with asking that you do not base your offer off the land assessment value (LAV) or the value of homes built around. Those can be part of the factors considered when you analyze your deal.

        I must say I am not qualified enough to offer financial advice. However, I can provide some general guidance on other factors that might be important to consider when evaluating a residential subdivision lot for investment purposes.

        Some factors to consider might include:

        1. Location: The lot's location is a critical factor in determining its investment value. A desirable location might have easy access to amenities such as schools, shopping centers, and public transportation. Considering your location is in an award winning golf course neighborhood, You may have satisfied this requirement.
        2. Size and shape of the lot: The lot size and shape are also essential considerations. A larger lot might have more potential for development or resale value, but it may also come with higher taxes and maintenance costs.
        3. Zoning and land use restrictions: The zoning regulations and land use restrictions of the local government can impact what types of structures can be built on the lot and can affect its overall value.
        4. Utilities and infrastructure: The availability of utilities such as water, electricity, and sewer systems, as well as the state of the infrastructure in the area, can also affect the lot's value.

        In terms of the offer, the price should be based on the fair market value of the property. Perhaps a 20-30% buffer would suffice.

        As mentioned earlier, the land assessment value and the value of nearby homes can be useful reference points, but ultimately the offer should be based on an accurate appraisal of the lot's worth. 

        Now Whether a lot is a good investment for building a single-family home or not would depend on a variety of factors as well, including the location, zoning regulations, and local real estate market conditions. It's always a good idea to consult with a few of your  local real estate peers for more specific guidance.

        Post: Development Idea for Northern Arizona Cabin Rentals

        Tommy Adeoye
        Pro Member
        Posted
        • Investor
        • Posts 156
        • Votes 77

        I must imagine, starting a project like this can be daunting, but it's definitely possible with the right guidance and planning. It's great that you're looking to speak with someone who has experience in this area. Here are some suggestions on how to proceed, some of which you may or may not be already aware of:

        1. Consult with a local architect: You’ll be dazed at how much ideas they possess and are willing to make available to you “pro bono”.  An architect with experience in Coconino County can also help you create a site plan and building plans for your cabins. They have vast knowledge and can also advise you on local zoning laws and building codes. Look for an architect who has worked on similar projects in the area, and ask for references. You may be able to find some out here on BP.
        2. Hire a contractor: Not sure if you plan to understate this project on your own to the get the experience under your belt. If this isn’t the case, then once you have your plans, contact a contractor to build the cabins. A local contractor can help you navigate the permitting process and ensure that the construction meets all local building codes. Get the creative juice flowing when you meet with the contractor.
        3. ( You may have done this already ) - Speak with the Coconino County Planning and Zoning Department: The county planning department can provide guidance on the specific requirements for obtaining a conditional use permit. They can also answer any questions you have about zoning regulations, setbacks, and other building requirements.
        4. It’s best you connect with other local vacation rental owners: Talking to other vacation rental owners in the area can provide valuable insights into the market and help you determine the best approach for marketing and managing your properties. A concrete pro forma is pivotal to the success of your project.

        Starting any new project can be challenging, but with the right support and guidance, you can navigate the process successfully. Don't hesitate to ask for help and advice along the way, a zillion questions are always welcomed. Good luck!