All Forum Posts by: Chris Wallace

Quick Update:

The project is currently stalled due to a dispute with the other adjacent property owners. Also the city is requesting changes to the building design because of zoning compliance. 

Due to significant structural issues, my renovation is over budget and I'm running out of funds. What was a bathroom and kitchen job turned into a major reframing. I need another $25k to complete the project, and I have already been declined by Lightstream and my credit union any advice on what to do? 

A developer has purchased my next door neighbors house and plans to demo the house and build a small condo development. Yesterday while walking my dog the developer approached me, introduced himself and explained to me what he was doing. I told him about my interest in real estate investing and development. We walked the property, chatted a bit he then offered me a "job". The job for now consist of managing the details of prepare the house for demo: Arranging the clean out, having the utilities disconnected, obtaining parking permits, etc. He also offered to show me the biz from his perspective and would be open to partner on some wholesale deals.  

A little background:

I live in the Columbia Heights neighborhood of DC. It has been a hotbed of renovation, flipping and now small condo development as the area has been gentrifying over that last few years. The condo developments are usually a converted rowhouse with an addition to the rear and sometimes vertically to yield 3-6 units.

  My neighbor was a little old who's family has owned the house and the land around it for 100 yrs!  I'm kicking myself right now for not asking her if she was going to sell. The area consists mainly of rowhouses (most are at partially attached), lowrise apartments and few highrises. 

A contractor friend advised me that this guy may have decided its better to win me to his side now rather than have to fight me later, when problems arise. I don't think that's untrue, but saw a possible opportunity to learn something and make connections, both with the developer, his network and vendors. 

I have zero development experience, but I have mortgage experience primarily residential with a few retail commercial deals.

What say you BP? Would you do it or nah?

Comments and questions are appreciated, Thanks 

Chris

Hey BP!

I'm looking at fourplexes to invest in but other than price what should I be looking for?

 What are some things I should ask agents for?

Some of the listings I've seen have basic financial information like gross annual rent and taxes or an annual expenses figure with no breakdown.

Am I entitled to ask for rent rolls, tax returns, utility bills, etc?

Is any info not disclosed until after an offer is made?

Please point me in the right direction

Thanks

Wow guys thanks for the suggestions! 

@tanya s. - 

Right now I'm looking for buy and hold for cashflow. The price points in Texas are bargains compared to most of the DC Metro. 

I've lived in Columbia Heights for the last 5 years and I love it too. I've watched the neighborhood transform over the years and there have been a few flips and a couple flops just on my block. I think its being by driven the shift toward urbanism and specifically the staff at the Hospital Center discovering the close proximity to work and all the amenities

I'd really like to do some deals in the neighborhood to build my reputation in the community.  

Hi BP I'm visiting Texas and taking a road trip across the state (woohoo!) and I always like to drive around to scout properties when I visit new places. Can anybody recommend any areas within the city limits of Houston, Austin or San Antonio where you like to invest or prospect?

Many thanks,

Chris

He may be able to find a solution at credit union vs a big bank. 

Try asking the loan officer if they have any FPR (future principal residence) programs.

It just the type of program your son is looking for, it will count the property as primary residence even though the borrower isn't taking immediate possession. There will be an addendum to the mortgage / affidavit to be signed at closing stating the intent to occupy the residence within 12 months of closing. And the interest rate is usually .5 -1% higher than a conventional loan.

.

Thanks guys for the advice dealing with family can be very challenging. We definitely don't want anyone to feel like we took undue advantage or swindled them. Also the median listing price for a home in my area is $450k its very expensive here.

Thanks again

Hi all!

I may have come across my first deal. One of my inlaws husband recently passed and she is considering selling her home.

The property is SFH 3 bed / 2 bath it is located in good neighborhood that is currently undergoing alot of development and investment activity. Its worth about $450k as is with a current mortgage balance of about $380k. ARV based on recent sales is about $515k

My wife and I have expressed our interest in buying the home for a rental but we have some concerns.

firstly financing we know that we won't qualify for conventional financing as we don't have the funds available for a 25 percent down payment for investment property.

Second most lenders won't fund a non arms length purchase.

Any insight into finding financing for something like this?

Sorry the links were missing:

http://www.trulia.com/homes/District_Of_Columbia/Washington/sold/91446-777-Kenyon-St-NW-Washington-DC-20010

http://www.zillow.com/homedetails/777-Kenyon-St-NW-Washington-DC-20010/474634_zpid/