All Forum Posts by: Brian Sher

Episode 260 bigger pockets daily podcast is an article from Kyle Zaylor about new construction Pro Forma. Worth a listen, hope this helps. 

https://www.biggerpockets.com/...

@Kay C.

I know nothing about long distance investing but Bigger Pockets cohost David Greene wrote a book on the subject called,

“Long Distance Real Estate Investing, How to buy, rehab, and manage out of state rental properties”

There has been many successful investors on the OG podcast who praise the book for its  insight on the topic. Welcome to BP and best of luck on your REI trails.

https://store.biggerpockets.com/products/long-distance-real-estate-investing

I would keep it, Microsoft is building more in Redmond, Bellevue is only getting hotter. Hold that cash flow as long as possible, maybe pull a HELOC on it, to use as a piggybank if you want to leverage your equity but you will never be able to purchase that type of cash flow in Sammamish again.

Could you partner with someone? Maybe wholesale it?

How long do you have till your close date? 
I'm assuming that because the investor cut half the funding that he will receive 50% of what the original equity/cash flow. Could you find family, friends, coworkers/ REIs that want in? Possibly pull a HELOC or cash out refinance on another property to pay back hard money so you can close on time.

In the Waxhaw NC area I am trying to buy a piece of property that has three separate parcels with three separate owners, gifted by the grandparent who recently passed away. Two of the parcels are vacant land with no utilities ran. The third parcel has a complete tear down house on it. My plan was to renovate the single family house and sub divide the other parcels. Possibly building in the future on the subdivided or selling as builder ready.

My question is how would you go about financing this purchase?

We could possibly get a, primary residence, conventional loan or a renovation loan for the first property with the house on it but the other two is where I’m stuck. My lender said possibly an agricultural loan(85%). Have any of you had any success with this type loan or have a great lender for this type of loan in the Charlotte area? Any other creative ways of financing?

NEC 110.3(B) states, "listed or labeled equipment shall be installed and used in accordance with any instructions included in the listing or labeling." aka you have to follow the instructions of every part of the electrical system.

-CO/CALR outlets are rated for for aluminum and copper terminations and are legal because of that. did they also replace switches?  what about light fixture terminations?

-You are correct. AL/CU purple wire nuts are legal for aluminum to copper, copper to copper but not aluminum to aluminum (no wire nut is... that I am aware of)

-Alumiconns are legal for all splices: AL/CU, CU/CU ,and AL/AL. I would suggest these for what they left with regular wire nuts on. 

-AFCI circuit breakers, like others said above, work well in conjunctions with the correct splices and terminations.This is required in my state when updating multiple devices or extending/ adding circuits, but check with your local AHJ (authority having jurisdiction) to see if its necessary. Either way it will give you piece of mind.

End result, if this was a good deal then it is most likely still a good deal. Get as much back from the seller as you can and close, then hire your guy to fix it up the rest of the way.

@Chen Tong  or maybe we're not thinking like Rich Dad, " how can I afford this" I have been hearing a lot about ADU's and DADU's lately. I am sure there is a lot more creative ways to cash flow on these properties. I would love to hear from some of the veterans in our area about what they are doing in the post 2020 market. 

@Chen Tong I am still a Rook but to me it seems like there is no deals in Seattle, at least on the MLS portals like Redfin. I feel like most are getting deals off market. I have been trying to reach my goal of calculating 100 properties in 90 days or less and most have been negative. I decided to cheer myself up and look at other markets, I guess I was doing it right. Lol.

Seems like the market is so hot that even regular first time homebuyers are looking at vacant property because building a house might actually be cheaper.

@Kevin Gallagher short answer; yes I would consider it equivalent if a license electrician signed off on it.

Long winded answer;

Because every contractor has their own threshold of liability. It is hard to say what your trusted licensed electrical contractor will say. Some will be willing to just look at it and reduce their warranty or give you no warranty and take your money. Others will tell you that they will have to rip it all out and replace it because it's unsafe. The best thing to do is ask questions to find out what their knowledge on the subject is and their threshold of liability. Like REI‘s no electrician knows it all and some have not ran into aluminum branch circuits in their career. If your trusted license electrician has, it would be simple for them to verify that the connections were legal.  The most common way to fix this issue is using "Ideal 30-765 wire nuts" (purple wire nuts) or similar UL listed connector at every junction and termination in the house. As Brandon Turner says "it is not easy, but it is simple". Good luck.