Investing in the DC Metro During the Recession Q&A

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Investing in the DC Metro During the Recession Q&A

Account Closed
Real Estate Broker · Rockville, MD · Member since 2018 · 47 posts · 54 votes

Hello to all!

While we are all in quarantine, I am sure most of you are taking the time to educate yourself and learn more about real estate investing.

I have worked over 30 years in this market. During the last recession, I was able to acquire several properties [including single family, homes, offices, multifamily properties and retail] and was able to stabilize my portfolio. 

I am willing to answer any questions you may have.

ASK AWAY!

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Aaron Hunt
All Over, USA · Member since 2017 · 689 posts · 756 votes
6y

DC area is known to be more resilient than other areas. This hasn’t been an area to find major wins in a long time. (Family has been here for 30 years)

We’re buying a primary now in the area. We were under contract before the COVID mess started and had a long close. Then put a COVID addendum in as well. We’re still moving forward and looking forward to it.

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  • Ryan Daigle
    Investor · Apex, NC · Member since 2018 · 253 posts · 215 votes
    6y

    Hey @Account Closed, not specific to DC but how has your underwriting changed to account for the economic impact of the quarantine? I.e. what dials do you turn in times of hardship to ensure you're taking advantage of the opportunity but are also being realistic about the impact?

    0Reply
  • Account Closed
    OP
    Real Estate Broker · Rockville, MD · Member since 2018 · 47 posts · 54 votes
    6y

    @Ryan Daigle : Each transaction is examined individually. All factors are considered when placing any transaction with a particular lender, including guidelines, turn times, type of transaction and qualifications of each borrower. This is a policy which is always in place, regardless of what factors are currently affecting the market. There are always variables which affect the ability of either a borrower or a lender in performing at any given time. Careful analysis of ALL aspects of a transaction provide the best potential for a successful transaction.

    0Reply
  • Ryan Daigle
    Investor · Apex, NC · Member since 2018 · 253 posts · 215 votes
    6y

    @Account Closed got it. So.. what's changed in your approach since 4 weeks ago?

    0Reply
  • Marielle Walter
    Investor · Washington, DC · Member since 2013 · 135 posts · 39 votes
    6y

    @Account Closed I have heard that if property values dip, banks can ask for the money back to make up the difference. Have you heard of this happening? I heard its not likely but possible. 

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y
    Originally posted by @Marielle Walter:

    @Account Closed I have heard that if property values dip, banks can ask for the money back to make up the difference. Have you heard of this happening? I heard its not likely but possible. 

     No that is not possible.

    [email protected]301-893-4635Podcast Guest on Show #192
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    0Reply
  • Account Closed
    OP
    Real Estate Broker · Rockville, MD · Member since 2018 · 47 posts · 54 votes
    6y

    @Ryan Daigle The approach has not changed. The markets are always changing but my approach always remains the same. I keep my figures conservative.

    0Reply
  • Account Closed
    OP
    Real Estate Broker · Rockville, MD · Member since 2018 · 47 posts · 54 votes
    6y

    @Marielle Walter Once a  loan is closed, the bank cannot request “money back”. In order for a bank to accelerate a loan (initiate foreclosure) the borrower must be in default (for residential loans this can ONLY be for lack of timely payment).

    0Reply
  • Marielle Walter
    Investor · Washington, DC · Member since 2013 · 135 posts · 39 votes
    6y

    @Account Closed thanks for the feedback, but i am not referring to foreclosure. Brandon Turner talks in his books about a phenomena where if the value of your investment property drops, the bank could technically ask you for the difference (this is my understanding at least - and the clause had a name, i cannot remember). You are not aware of anything like this?

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y

    @Marielle Walter

    Commercial loans are subject to review at different points as per their contract. Residential loans are not.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    0Reply
  • Marielle Walter
    Investor · Washington, DC · Member since 2013 · 135 posts · 39 votes
    6y

    @Russell Brazil that is excellent news, thanks. 

    0Reply
  • Account Closed
    OP
    Real Estate Broker · Rockville, MD · Member since 2018 · 47 posts · 54 votes
    6y

    @Marielle Walter

    There is no such clause for residential property, investment, second home or primary residence.

    0Reply
  • Bola Williams
    Real Estate Agent · Rockville, MD · Member since 2015 · 39 posts · 16 votes
    6y

    Hi @Account Closed thanks for starting this thread, just a quick question, with lending drying up seemingly overnight, what are your thoughts on purchasing flips in this immediate market?

    I've seen a few absolute gems (40-50% ARV) properties come across my plate, I was able to find a lender willing to lend on these specific properties in this current climate but as I read through forums I see that most people are saying the smart money is out of the market.

    I have a few listings in PG County (under 350k list price) and one in DC (650k list price) and all of them have seen double-digit showings over the last few days. I feel like this contradicts the smart money?

    Maybe I'm wrong?

    What are your thoughts?
     
      

    0Reply
  • Zee Ayezain
    Member since 2019 · 24 posts · 3 votes
    6y

    Thanks @Account Closed, appreciate you starting this thread. Just curious, how do you build your maintenance team? 

    I am a long distance investor in DC spending a majority of my time away and would like to have a good solid team of go-to maintenance folks ready to call in case something pops up in my 3 unit multifamily property. I dont know where to start. 

    Appreciate any help. 

    0Reply
  • Aaron Hunt
    All Over, USA · Member since 2017 · 689 posts · 756 votes
    6y

    DC area is known to be more resilient than other areas. This hasn’t been an area to find major wins in a long time. (Family has been here for 30 years)

    We’re buying a primary now in the area. We were under contract before the COVID mess started and had a long close. Then put a COVID addendum in as well. We’re still moving forward and looking forward to it.

    2Reply
  • Account Closed
    OP
    Real Estate Broker · Rockville, MD · Member since 2018 · 47 posts · 54 votes
    6y

    @Bola Williams Lending has NOT dried up. However, lenders are adding additional overlays to protect themselves against equity reductions and ensure borrowers (and contractors) have sufficient cash flow to complete projects. If there are any specific projects you would like to discuss, feel free to message me.

    0Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    Why does everybody underestimate Arlington, I think will become Silicon Valley 2.0, real estate prices will grow accordingly in my opinion for the next decade +

    1Reply
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