Newbie with Property Under Contract

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Newbie with Property Under Contract

Kenyatta DonleyPro Member
Real Estate Agent · PA · Member since 2021 · 46 posts · 37 votes

Hi...I am a fairly new member to the community but have been following the podcasts for a bit. I just wanted to take a second to share that I got my first property under contract. I am based in Philadelphia area and purchased a property in Baltimore. It was through an auction site that is managing a good volume of properties in that area. I took a last minute shot not expecting to win and well...I did. Baltimore is super hot right now and slowly gentrifying like many urban cities. So I am excited. The transaction and communication has been super smooth and we close next month. 

So right now I am just lining up my next steps. I have reached out to get insurance coverage while I rehab and also just reached out to get an inspector into the property to give me a full report of the condition and any concerns. Then from there I hope to start working on a scope of work and find me a good contractor to begin rehab. That's it! 

That's my story. I just wanted to contribute something to the community and hopefully encourage someone who is sitting on the sidelines. I was stuck in analysis paralysis most newbies and one night I just said screw it and submitted a bid. I will say the week before I had also put in an offer to a wholesaler which was pretty aggressive and I didnt expect to be accepted. The point is I made a decision to start taking some at bats and the Universe rewarded me. 

I am still working through my numbers and plans but will keep the community updated!

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Sara Frank
Realtor · Baltimore, MD · Member since 2020 · 255 posts · 182 votes
4y
Quote from @Kenyatta Donley:

Update: so it’s been a couple of months and i am chugging along. As many of you know finding a good contractor is a **** show but i ended up going with a referral after interviewing several.

There are lots of challenges in Baltimore and materials are super expenses but I m committed to completely the project. I also experienced my first break in. Some clown stole about $1000 worth of plumbing supplies. It could have been worst. My site has been robbed. So i guess i m really official now! 

I am using my own cash/credit cards on the project. So i have no loan payments or hard money timelines breathing down my back. However the pressure i m putting on myself Is probably just as bad! 

I m based in the Philly area. So i can get to Baltimore in about 90 minutes. So it’s a distance project but not so far that i can’t put feet on the ground. I actually just met my contractor in person for the first time this week. We have been doing everything electronically and the crew has been working over a month. We exchange lots of texts, email, video and early morning calls from Home Depot. 

So it’s my first project and i am a anxious wreck but all in all things are pushing along. 


 Looks great -- good job!! Definitely consider installing even fake security cameras, they will help to deter unwanted visitors. Baltimore can be tricky but you have the right approach in going all in and not succumbing to analysis paralysis. 

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  • Josie Wells
    Member since 2022 · 1 post · 0 votes
    4y
    Congrats Kenyatta! Glad to hear you to action! Best Wishes!
    0Reply
  • Account Closed
    Investor · Baltimore, MD · Member since 2015 · 10 posts · 8 votes
    4y

    Congratulations on the new purchase. I’m currently purchasing my first rental in the city as well. 

    1Reply
  • Kenyatta DonleyPro Member
    OP
    Real Estate Agent · PA · Member since 2021 · 46 posts · 37 votes
    4y
    Originally posted by @Account Closed:

    Congratulations on the new purchase. I’m currently purchasing my first rental in the city as well. 

     Congratulations. I am just got off the phone with a local inspector. So hope to get my inspection done tomorrow and then we will be rolling! Let's keep connected. 

    2Reply
  • Account Closed
    Investor · Baltimore, MD · Member since 2015 · 10 posts · 8 votes
    4y

    How’d that inspection turn out? 

    0Reply
  • Sylvia Franklin
    Chicago, IL · Member since 2015 · 1 post · 0 votes
    4y

    Congratulations! Would love to hear more about your rehab journey as it unfolds.

    0Reply
  • Danielle Jackson
    Phoenix, AZ · Member since 2021 · 504 posts · 282 votes
    4y

    Congrats! Excited to hear about your journey. 

    0Reply
  • Kenyatta DonleyPro Member
    OP
    Real Estate Agent · PA · Member since 2021 · 46 posts · 37 votes
    4y
    Originally posted by @Account Closed:

    How’d that inspection turn out? 

    Just got off the phone with my inspector a bit ago. It didn't go too bad. Again for context this property is a shell. Looks like someone bought it or already owned it, started doing some work and then called it quits. So its gutted and pretty cleaned out. Inspector said there are couple of support beams that need repair/replacing. Plumbing and electric still intact. Looks pretty good but breaker box needs replacing and possibly replace water supply pipes. No foundation issues. He's sending over the full report obviously but I requested a conversation once the inspection was done just to get his read. So he actually walked me through the house on the phone while he was still there. 

    0Reply
  • Alaina Hinds
    Huntingtown, MD · Member since 2021 · 9 posts · 5 votes
    4y

    Congrats! Looking forward to hearing more on the progress.

    0Reply
  • Ozzy SirimsiBusiness Member
    Real Estate Agent · Baltimore, MD · Member since 2016 · 1k+ posts · 782 votes
    4y
    Quote from @Kenyatta Donley:

    Hi...I am a fairly new member to the community but have been following the podcasts for a bit. I just wanted to take a second to share that I got my first property under contract. I am based in Philadelphia area and purchased a property in Baltimore. It was through an auction site that is managing a good volume of properties in that area. I took a last minute shot not expecting to win and well...I did. Baltimore is super hot right now and slowly gentrifying like many urban cities. So I am excited. The transaction and communication has been super smooth and we close next month. 

    So right now I am just lining up my next steps. I have reached out to get insurance coverage while I rehab and also just reached out to get an inspector into the property to give me a full report of the condition and any concerns. Then from there I hope to start working on a scope of work and find me a good contractor to begin rehab. That's it! 

    That's my story. I just wanted to contribute something to the community and hopefully encourage someone who is sitting on the sidelines. I was stuck in analysis paralysis most newbies and one night I just said screw it and submitted a bid. I will say the week before I had also put in an offer to a wholesaler which was pretty aggressive and I didnt expect to be accepted. The point is I made a decision to start taking some at bats and the Universe rewarded me. 

    I am still working through my numbers and plans but will keep the community updated!

    Congrats!!!

    if you need any material such as cabinets, flooring with good pricing, I can give you names.

    0Reply
  • Kenyatta DonleyPro Member
    OP
    Real Estate Agent · PA · Member since 2021 · 46 posts · 37 votes
    4y
    Quote from @Ozzy Sirimsi:
    Quote from @Kenyatta Donley:

    Hi...I am a fairly new member to the community but have been following the podcasts for a bit. I just wanted to take a second to share that I got my first property under contract. I am based in Philadelphia area and purchased a property in Baltimore. It was through an auction site that is managing a good volume of properties in that area. I took a last minute shot not expecting to win and well...I did. Baltimore is super hot right now and slowly gentrifying like many urban cities. So I am excited. The transaction and communication has been super smooth and we close next month. 

    So right now I am just lining up my next steps. I have reached out to get insurance coverage while I rehab and also just reached out to get an inspector into the property to give me a full report of the condition and any concerns. Then from there I hope to start working on a scope of work and find me a good contractor to begin rehab. That's it! 

    That's my story. I just wanted to contribute something to the community and hopefully encourage someone who is sitting on the sidelines. I was stuck in analysis paralysis most newbies and one night I just said screw it and submitted a bid. I will say the week before I had also put in an offer to a wholesaler which was pretty aggressive and I didnt expect to be accepted. The point is I made a decision to start taking some at bats and the Universe rewarded me. 

    I am still working through my numbers and plans but will keep the community updated!

    Congrats!!!

    if you need any material such as cabinets, flooring with good pricing, I can give you names.

    Great…thank you! 
    0Reply
  • Kenyatta DonleyPro Member
    OP
    Real Estate Agent · PA · Member since 2021 · 46 posts · 37 votes
    4y

    Just a quick update. Settlement was 2/22/22. Everything went fine other me pushing back on some settlement fees. As a lot of you probably know some of these companies are loading up on junk fees in your settlement/closing costs. Unfortunately the way the deal was structured I had to use this company. So they kind of had me . I still made a small fuss anyway. Then I got over it and moved on quickly.

    Still working on GC estimates. I m behind schedule due to some weather and being under the weather myself. So hoping to get this moving this week. 

    0Reply
  • Kenyatta DonleyPro Member
    OP
    Real Estate Agent · PA · Member since 2021 · 46 posts · 37 votes
    4y

    Update: so it’s been a couple of months and i am chugging along. As many of you know finding a good contractor is a **** show but i ended up going with a referral after interviewing several.

    There are lots of challenges in Baltimore and materials are super expenses but I m committed to completely the project. I also experienced my first break in. Some clown stole about $1000 worth of plumbing supplies. It could have been worst. My site has been robbed. So i guess i m really official now! 

    I am using my own cash/credit cards on the project. So i have no loan payments or hard money timelines breathing down my back. However the pressure i m putting on myself Is probably just as bad! 

    I m based in the Philly area. So i can get to Baltimore in about 90 minutes. So it’s a distance project but not so far that i can’t put feet on the ground. I actually just met my contractor in person for the first time this week. We have been doing everything electronically and the crew has been working over a month. We exchange lots of texts, email, video and early morning calls from Home Depot. 

    So it’s my first project and i am a anxious wreck but all in all things are pushing along. 

    2Reply
  • Sara Frank
    Realtor · Baltimore, MD · Member since 2020 · 255 posts · 182 votes
    4y
    Quote from @Kenyatta Donley:

    Update: so it’s been a couple of months and i am chugging along. As many of you know finding a good contractor is a **** show but i ended up going with a referral after interviewing several.

    There are lots of challenges in Baltimore and materials are super expenses but I m committed to completely the project. I also experienced my first break in. Some clown stole about $1000 worth of plumbing supplies. It could have been worst. My site has been robbed. So i guess i m really official now! 

    I am using my own cash/credit cards on the project. So i have no loan payments or hard money timelines breathing down my back. However the pressure i m putting on myself Is probably just as bad! 

    I m based in the Philly area. So i can get to Baltimore in about 90 minutes. So it’s a distance project but not so far that i can’t put feet on the ground. I actually just met my contractor in person for the first time this week. We have been doing everything electronically and the crew has been working over a month. We exchange lots of texts, email, video and early morning calls from Home Depot. 

    So it’s my first project and i am a anxious wreck but all in all things are pushing along. 


     Looks great -- good job!! Definitely consider installing even fake security cameras, they will help to deter unwanted visitors. Baltimore can be tricky but you have the right approach in going all in and not succumbing to analysis paralysis. 

    1Reply
  • Joe Norman
    Property Manager · Baltimore, MD · Member since 2014 · 1k+ posts · 1k+ votes
    4y

    Way to take action! Be sure to keep that job site secure. Fake cameras are one option, or you can use the Ring Jobsite Security System that they sell through Home Depot.

    I assume you're doing a Lead Free Reno since this is a full gut anyway?

    0Reply
  • Travis TimmonsPro Member
    Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
    4y

    You haven't invested in real estate until you've said, "What the hell am I even doing?!?" or "Why did I think this was a good idea?" a few times. Nice job on pushing through and keeping a good attitude. We've all been there...If I'm honest I'm kind of there right now but it's a little easier after you get the first one behind you.

    0Reply
  • Kenyatta DonleyPro Member
    OP
    Real Estate Agent · PA · Member since 2021 · 46 posts · 37 votes
    4y
    Quote from @Sara Frank:
    Quote from @Kenyatta Donley:

    Update: so it’s been a couple of months and i am chugging along. As many of you know finding a good contractor is a **** show but i ended up going with a referral after interviewing several.

    There are lots of challenges in Baltimore and materials are super expenses but I m committed to completely the project. I also experienced my first break in. Some clown stole about $1000 worth of plumbing supplies. It could have been worst. My site has been robbed. So i guess i m really official now! 

    I am using my own cash/credit cards on the project. So i have no loan payments or hard money timelines breathing down my back. However the pressure i m putting on myself Is probably just as bad! 

    I m based in the Philly area. So i can get to Baltimore in about 90 minutes. So it’s a distance project but not so far that i can’t put feet on the ground. I actually just met my contractor in person for the first time this week. We have been doing everything electronically and the crew has been working over a month. We exchange lots of texts, email, video and early morning calls from Home Depot. 

    So it’s my first project and i am a anxious wreck but all in all things are pushing along. 


     Looks great -- good job!! Definitely consider installing even fake security cameras, they will help to deter unwanted visitors. Baltimore can be tricky but you have the right approach in going all in and not succumbing to analysis paralysis. 

     Thanks! We immediately put the fence up in the back and working to get initial inspections done. That way we can get those walls closed up this week. Thank so much for your response/comment. 

    0Reply
  • Kenyatta DonleyPro Member
    OP
    Real Estate Agent · PA · Member since 2021 · 46 posts · 37 votes
    4y
    Quote from @Joe Norman:

    Way to take action! Be sure to keep that job site secure. Fake cameras are one option, or you can use the Ring Jobsite Security System that they sell through Home Depot.

    I assume you're doing a Lead Free Reno since this is a full gut anyway?


     Yes my contractor put in a jobsite set and we secured that rear window and added the fence. Definitely a lead free reno. The house was down to the bricks when I purchase it. So that was a plus. we were able to in with a clean slate. 

    1Reply
  • Kenyatta DonleyPro Member
    OP
    Real Estate Agent · PA · Member since 2021 · 46 posts · 37 votes
    4y
    Quote from @Travis Timmons:

    You haven't invested in real estate until you've said, "What the hell am I even doing?!?" or "Why did I think this was a good idea?" a few times. Nice job on pushing through and keeping a good attitude. We've all been there...If I'm honest I'm kind of there right now but it's a little easier after you get the first one behind you.


     I feel like I'm in a bad relationship. Some days I am excited and on top of the world and other days its exactly what you said! I've had more than a few "I putting this thing up for sale"  moments. As I mentioned I dont have the hard money clock ticking but just as bad is my own pressure. However, I think there are a lot of political and economic winds in my favor and despite the worries (which is not always a bad thing) I think this is going to be a great first of many. 

    2Reply
  • Kenyatta DonleyPro Member
    OP
    Real Estate Agent · PA · Member since 2021 · 46 posts · 37 votes
    4y

    A word of advise to my other newbies friends....beware of people calling themselves contractors. I had one crew that was going to try and do my job without permits until I questioned it. Then they brought in another guy who was supposedly "licensed". Well when I pulled up his information he was licensed as a real estate appraiser and not a general contractor or trades person. Maryland has a website that makes it super easy to look up someone's credentials. Everyone is trying to get paid which is fine but we are responsible for our properties and risking our finances. So don't be afraid to verify and ask questions especially if things don't see correct. 

    2Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    4y

    Keep chugging along and updating us! 

    0Reply
  • Heath Thomas Jr
    Lender · Baltimore MD · Member since 2015 · 201 posts · 66 votes
    4y

    Hey @Kenyatta Donley wanted to see how this project was coming along. If you are planning to flip it, try to market it with Live Baltimore's Vacants to Value program if it is eligible as it is a great incentive to buyers and could help you squeeze a little more profit out of the flip.

    0Reply
  • Kenyatta DonleyPro Member
    OP
    Real Estate Agent · PA · Member since 2021 · 46 posts · 37 votes
    4y
    Quote from @Heath Thomas Jr:

    Hey @Kenyatta Donley wanted to see how this project was coming along. If you are planning to flip it, try to market it with Live Baltimore's Vacants to Value program if it is eligible as it is a great incentive to buyers and could help you squeeze a little more profit out of the flip.


     Hey Heath thanks for the tip but I m not looking to flip. I think we are entering interesting times in Baltimore. So my goal right now is to build a portfolio rental properties. I think in this current market there will be a lot of opportunities in rentals. I believe in Baltimore specifically has DC becomes less and less affordable Baltimore will become attractive for young professionals. At least that's my plan for now. As I think I mentioned I have my own cash in these deal. So I'm the bank and the only real pressure is the pressure I put on myself. 

    In terms of my project...I'm stuff in the inevitable Baltimore mud. We're running into some problems with an over zealous inspector. So he's holding up my framing approval. Then we have had electric services rescheduled several times and waiting on the water meter installation. Not "major" issues just pain in the a$$ things that are slowing down the project...mostly the inspector. The good thing is that I paid my contractor in draws that we both agreed to. So its not like he is walking around with my money and nothing is going on. He benefits him to keep things moving. So he is doing his part to help follow up on services and approvals. We have great relationship that started out and it appears to be paying dividends.

    The upside is that the neighborhood is continuing flourish with some new neighbors coming in who are higher wage earners and a lot of curiosity and interest in my the completion of my project. So I am actually popping down tomorrow just to show my face on site. 

    2Reply
  • Sara Frank
    Realtor · Baltimore, MD · Member since 2020 · 255 posts · 182 votes
    4y
    Quote from @Kenyatta Donley:

    Hi...I am a fairly new member to the community but have been following the podcasts for a bit. I just wanted to take a second to share that I got my first property under contract. I am based in Philadelphia area and purchased a property in Baltimore. It was through an auction site that is managing a good volume of properties in that area. I took a last minute shot not expecting to win and well...I did. Baltimore is super hot right now and slowly gentrifying like many urban cities. So I am excited. The transaction and communication has been super smooth and we close next month. 

    So right now I am just lining up my next steps. I have reached out to get insurance coverage while I rehab and also just reached out to get an inspector into the property to give me a full report of the condition and any concerns. Then from there I hope to start working on a scope of work and find me a good contractor to begin rehab. That's it! 

    That's my story. I just wanted to contribute something to the community and hopefully encourage someone who is sitting on the sidelines. I was stuck in analysis paralysis most newbies and one night I just said screw it and submitted a bid. I will say the week before I had also put in an offer to a wholesaler which was pretty aggressive and I didnt expect to be accepted. The point is I made a decision to start taking some at bats and the Universe rewarded me. 

    I am still working through my numbers and plans but will keep the community updated!


     Congrats! Most get caught up in wanting to read every book and listen to every podcast before they take action. It only holds them back in the long run. Best of luck:) 

    0Reply
  • Kenyatta DonleyPro Member
    OP
    Real Estate Agent · PA · Member since 2021 · 46 posts · 37 votes
    3y

    Just a quick update for those that have been following my progress. Here are some of the final photos (scroll up for some of the earlier photos). The project has been complete for a couple of months but was working through some final loose ends. We are currently interview potential tenants and hope to have it rented by the end of January (given the holiday). It's been an adventure and I have learned so much by jumping in and getting started. Certainly I would have done some things differently but all in all its been good!

    0Reply
  • Kenyatta DonleyPro Member
    OP
    Real Estate Agent · PA · Member since 2021 · 46 posts · 37 votes
    3y

    Final update….

    So here’s how my rookie first project ended up:

    Purchased shell for $15,000

    Rehab was about $150,000 (during COVID supplies shortage and price surges). No mortgage on the property. I used personal cash and business credit cards. 

    Appraised for $196,000 in January

    Listed as rental for over market based on level

    of rehab. Signed my lease with my tenant for $1750 per month on February 2, 2023.

    Completing a cash out refinance to clear out the high interest business credit. I actually sign tomorrow. 

    It wasn’t pretty but I got it done and definitely proud of the results. 

    My final message is don’t just join biggerpockets for entertainment. Make a promise to get started in 2023. There will be scary moments but you’ll get through and learn from your mistakes. I did!




    1Reply
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