Thanks in advance for anyone who reads and answers and thank you all for the community as I very much enjoy reading the forums and listening to the podcasts.
My fiance and I purchased a small Buckhead condo in 2013 which, based on recent sales within the building, seems to have appreciated by as much as seventy or eighty percent of the purchase price. This happened purely by luck and chance but I have long had an interest in real estate and as of a few weeks ago we were in the early stages of listing the condo with the idea of re-investing the equity in a small (2, 3 or 4 unit) multifamily building.
Our plans are unchanged but temporarily on hold due to damage from a busted pipe in an upstairs unit. Dealing with the insurance company and their preferred contractor has left me with some questions and although I have not yet heard a final scope and value of repairs, I am preparing for the worst and have thus far spoken with my lawyer and a public adjuster, who was a really nice guy but a bit of a fast talker.
My questions are these:
First, does anyone have any suggestions on how best to deal with the insurance company? Again, I have yet to hear a final value of repairs but there have been conversations that make me doubt whether their primary goal is to indemnify my loss. I have read accounts of those in a similar situation who hired an attorney only to be tied up in court for a long period which isn't really an option for us as we are living in a hotel until our condo is put back together; and my concern with the public adjuster is that I would ultimately have to come out of pocket to pay their 10% fee.
Second, I may have to sub out or even perform a portion of the work myself to stretch the money that we receive from insurance so that all repairs are accounted for. Is there anyone who could recommend local subcontractors for tile, sheetrock, painting and trim work?
What I recommend doing is liquidating your home first. Since the property has equity, use that to do the repairs on the home. I'm interested in then buying the property from you and I would be more than happy to walk through the whole process with you and not charge you a dime.
Inbox me if you would like to know more details.
Thank you for your response. I'm not sure what you mean by liquidating but my question to you would be what is the value, to me, in selling to a wholesaler? Keep in mind that I have no experience in buying and selling real estate in anything other than the mainstream world of realtors and traditional mortgages so that I don't mean that to be argumentative so much as it is a genuine question of why I would sell to a wholesaler. From what little knowledge I do have of wholesalers, I feel like you guys buy at some percent beneath wholesale value, then sell to an investor at wholesale value who then sells the property at retail value. That sounds like something that works out well for everyone except the seller unless they are in some distressed situation that makes selling at the steep discount a viable solution but that is not our situation.
That said, I would be interested if you have any suggestions of properties that I might purchase, from you or otherwise, as we are having a difficult time finding a multifamily in a decent itp neighborhood, eg buckhead, brookhaven, virginia highlands, etc that also makes sense as an investment. We would have a sizable down payment but at the prices that I am seeing we are by no means a cash buyer, if that makes a difference.
Thanks again - Jimmie
What I would do with you is get into property management. You could use your money down and consider lease options. You would then sublease the property to someone else or work with another seller and take a percentage off of the rental and management aspect.
You could also get a mortgage and place a tenant in the property and have then pay the rent, while you use the access cash flow to accelerate the mortgage. Up to you if you want passive income or short fast cash.
Would definitely love the passive income but hoa does not allow rentals.