All Forum Posts by: Jared W Smith
Jared W Smith has started 27 posts and replied 657 times.
Post: Multi-Family Property & Major Rehab - New Investor
- Architect
- Westchester County, NY
- Posts 669
- Votes 467
Originally posted by @Grant Farrington:
Hey, Jared!
Have you considered hard money or private money? If you can get a good estimate of the ARV, then you can possibly find a hard money lender willing to loan you 70% of the ARV for the purchase and rehab.
As long as you could afford the monthly interest payments for 6-12 months, you should be able to refinance the property to pay your lender back and maybe even make some money for more deals! (Assuming the deal works how you hope it can).
I am interested to see what you end up doing. My wife and I are going to purchase or first investment property this year, and figuring out financing is our current obstacle as well.
Best of luck to you!
I have researched these options, however I have to work out the time frame between purchase and being rent ready. Thanks for your comment and advice.
Post: Multi-Family Property & Major Rehab - New Investor
- Architect
- Westchester County, NY
- Posts 669
- Votes 467
Originally posted by @Matt Popilek:
One Side Thought I used on my first MUF. If you can buy the property for cheap enough you may consider purchasing the property out right prior to involving the lender. Then proform the property based on expected market rate rents. I would "contribute" the property to the bank as the down payment. Then you can get 100% or more of the construction financed.
In my case I bought a 14 plex for $10 from the City - I spent about $30k cash on abatement issues. Once that was done I contributed both buildings as collateral to the bank for $450k in a construction loan. In essence all my construction costs were covered. If you figure $30k down and $450k in a loan my percentage down was about 6.5%.
Obviously you need to own the property first in order for this to work, and you need solid market rate rental numbers you can use to get the commercial appraiser to appraise the property high enough to get 100% of the construction cost covered.
If I had this to do over again I would have provided a construction budget of the FULL amount the bank would approve...so for instance if you could get 75% LTV from a bank I would make sure my total construction budget would be 75% LTV. Regardless how much you need to spend having the extra funds in case you need them at the end is very helpful.
I gave them a construction budget of $445k it appraised at $650k which was MY Valuation I provided the appraiser and bank. So I got 69% LTV approved because that was what I asked for...I would have been better off asking for the 75% from the get go. There have been little things I didn't figure in, and that buffer would have prevent heart burn at least a little.
Good point utilizing the property as collateral. I did not think about this option. Thanks!
Post: Looking for contractors in Yonkers NY
- Architect
- Westchester County, NY
- Posts 669
- Votes 467
@Christopher Polanco I am an Architect and have worked with several local contractors. I just recently wrapped renovations at my own SFH I just purchased in Yonkers last year. Private message me for my email and I can give you a few contractor contacts to come check out your project/needs.
Post: New Member from lower Hudson Valley NY
- Architect
- Westchester County, NY
- Posts 669
- Votes 467
Originally posted by @Christopher Polanco:
Hi everyone. Just looking for some education on real estate investing. Very new to this. My first dip into this was 5 years ago when I bought my first house, a 2 family Victorian which I curently occupy and I rent the other unit. Love the rental income. And Im basically looking for more education as I do want to buy an investment property within the next 2 years hopefully and continue to invest to build a portfolio of properties to one day retire off the rental income.
Welcome to the site. I am sort of new here also. Happy to see another local.
Post: Multi-Family Property & Major Rehab - New Investor
- Architect
- Westchester County, NY
- Posts 669
- Votes 467
Hello all,
New here and wrapping my head around the logistics within a buy-and-hold strategy on a rehab multi-family property. I am in NY, not NYC- Westchester & Rockland Counties. I am looking at a 5-Family property on a .5 acre lot. Probably a "B-" neighborhood. It's about 5,000 SF with 3-2bdrm 1 bath and 2-1bdrm 1 bath units. The area is zoned for apartment, low density (value-add?). This property has been vacant/decrepit since I can remember (at least 15-20 years). The reason the properties and others like this strike an accord with me is I am an architect and utilizing my professional experience and connections, I know I can turn this into a rent ready building fairly easily. (This one is likely to be a full gut.)
In looking at financing, being classified as commercial due to 5-family, how would you go about financing the construction? I'm inclined to contact a local portfolio lender. I am assuming I will be able to get the property for a very low price. What typically would I have to put down for construction loan? In my research, the loan can be given based on expected rent rates for the area. These rates are dependent on the lender I assume. (75%, 80%?)
Anyone have portfolio or other lender contacts local to Westchester & Rockland Counties (NY) that they've used?
Any insight or contacts would be greatly appreciated. Thank you
Post: No bedroom windows in apartments
- Architect
- Westchester County, NY
- Posts 669
- Votes 467
Originally posted by @Robert Pole:
I am an architect licensed in NY. I work in NYC and Westchester County. Is the property in NYC/NY? If so.. there is no way a legal bedroom can occur without windows in a new development. Building code requires "light and air" as well as a minimum square footage of glazing per bedroom. This is also a life safety issue and retroactive, no grandfathering. You need to re-think your plan and question why your architect thinks he can give you 2 illegal units.
Post: 130 Unit Renovation Inspection Schedule
- Architect
- Westchester County, NY
- Posts 669
- Votes 467
@Arav N. The city's concern is getting the property completed to code. At this stage I doubt the city is worried about quick turn around to collect taxes.
If this is a third party then that means the city may be overwhelmed and cannot keep up with the construction occurring or this works out better for their staff. Either way, you should have enquired when the sample mock ups were completed as to the remaining construction. Having it in writing goes along way. It seems as though you assumed things would go smoother after mock up but never asked specifically or got it in writing.
I'd advise to contact the township and talk it out. Don't make demands with them or the third party. They can make things very difficult for you. I deal with inspector in NYC and Westchester County and you tread lightly and sometimes you can't do anything about it.
Post: Fix and Flip from fire damage
- Architect
- Westchester County, NY
- Posts 669
- Votes 467
Originally posted by @Regina Jones:
I was presented with a Fix and Flip from a wholesale investor. 48K ARV 138K and in need of a full rehab 45k? from a fire damage. Located on a busy street in a good neighborhood. Do you think that this is a big project for a new investor?
A full gut rehab for $45k? What area is this? That's extremely low. Have architect and engineering fees been factored in? What about bringing all electrical, plumbing and insulation/energy up to code? Municipality fees and inspections?
Post: Invest In NY Area Real Estate Meetup with Speaker Darren Sager
- Architect
- Westchester County, NY
- Posts 669
- Votes 467
Wish I had known about this event. Please alert me to the next one.
Post: Do you need a civil engineer?
- Architect
- Westchester County, NY
- Posts 669
- Votes 467
Originally posted by @Arturo Borges:
Do you need a civil engineer when building a single family home or townhomes? Or that's just for bigger property developments?
Depends on the site and the utilities available.