All Forum Posts by: Tom Meade

@Ben Dunavent there are no posted replies here, but did you ever find a software solution for private/HM Lending - origination and servicing?  I'm looking for one myself and searched BP forums but don't see any answers...

sounds like EB5 money...  I'm not saying it can't be done but there's a ton of paperwork and your deal definitely has to have a certain profile, as far as the economic impact and job creation.  

Typical rehabs or for-sale new construction probably won't work.

Hi Graham - what is the purchase price, renovation budget and loan amount? How long until you re-fi out? You could certainly go with a Hard Money Lender or Private Lender, but depending on the loan size, LTV and sponsor experience, this could be a candidate for a bridge loan from a commercial lending shop - more expensive than conventional/bank financing but not as expensive as HML or PML.

Great response from @Ray Hurteau above.  Couple points are worth repeating/expanding on. 

1.  Value - great point that the property is worth whatever it's worth today based on the current use/occupancy.  This is like when you're buying a poorly managed multifamily.  You don't base your purchase price on *potential* rents at the property, you have to price it based on the current rent roll.  To the extent you are able increase the rents after you purchase it, that's value that YOU created and you don't want to pay the seller for that.  As Ray points out, if the seller wants to stick to his number, make him come along for the ride - he'll get his price, but only if you get your approvals.  You also save big money on carrying costs by structuring the deal this way.

2.  Given that this is your first run at something like this, I would definitely partner with somebody on it.  The best would be if there's another investor in town that you've seen have success with this type of petition - s/he'll already be plugged in to the town officials and professional service providers (attorney, architect and civil engineer) who can get it done for you.  Next best would be an investor who has this type of experience in other towns - if you understand the mechanics of how this is done, you can find the right (connected) service providers and take it through the process in any town.  I'd be careful about partnering directly with an architect or civil engineer - if they were good at the "big picture" stuff, they'd be doing it full time.  Even some of the best of these guys (and gals) I've worked with are very good at their piece of it, but fall short of seeing the big picture.

Best of luck!

16' wide (actually 15'9") is pretty common in modular construction because of shipping issues - not sure but I think they can put that size box on a trailer and just be subject to "Oversize Load" transportation requirements (such as an escort in certain states).  Anything wider than that and it gets astronomically expensive to ship.

I'm working on two separate townhouse condo developments (one is three attached units, one is five attached units) with floorplates of roughly 16 x 32.  They're tall skinny units, but with some tweaks to the floor plans the layouts aren't bad - parking under; kitchen, 1/2 bath and open living area on the first floor; two beds and a bath on the second floor; master bed and bath on the third floor.  1,400 - 1,500 sf of living area.

 Hi Amit,

There are some good posts around the forums on JV's more generally - maybe not as complex as what you outline above, but you can get some good background what the various stakeholders/deal participants will get in different JV setups. Here's a decent thread from while back:

http://www.biggerpockets.com/forums/521/topics/116195-jv-partnership-feedback-those-w-experience-please-weigh-in

All the best,

Tom

welcome @Michael Zack !

I too hail from Quincy. Love it.

BP has a strong community of Massachusetts members, definitely connect with them, set up some keyword alerts for the areas you're interested in (geographic and subject matter).

I'd also recommend attending some of the local REIA events - BP is awesome and there's a ton to learn here, but there's nothing like sitting in a room full of people who are doing what it is you're aspiring to do.

I wish you all the best!

Hi Chang- I got the Certificate in RE Finance from BU. Good program to build a foundation. Shoot me an email and I'd be glad to grab a coffee with you and see if I can be of any help.

I have Paslode framing nailers that are like 8-10 years old. Used heavily while I was a GC full time and sporadically as a weekend warrior for the past few years. Never a problem, very few jams and love the paper tape nails. I have a porter cable pancake compressor same age and usage that has been great along with porter cable finish guns (straight nailer, angle, brad and finish staple). Also have a Rigid 5-gallon compressor that's pretty heavy and cumbersome to drag around but works fairly well. Believe it or not that little porter cable pancake might be all you need. True the hitachi nailer seems to have more oomf but not sure you need it.

Search around BP for auction.com and nationstar (I think) war stories. My understanding is that auction.com is being used my banks to confirm that short sales or REO sales they already have offers for are in the ballpark. One local investor told me he had the winning bid on an auction.com property twice and they failed to deliver it. Frustrating.