All Forum Posts by: Deneuve Brutus

Hi @John Stutz , from my past web searches for lenders. I've found many websites, companies, banks, credit unions, who offer rehab/renovation loans. A few may offer Asset Backed Loans (ABL), which uses the duplex as collateral. BP includes in their Network section lenders including HML. As far as putting an offer with F&F, a promissory note, notarized between you and the other party outlining the terms of the agreement should suffice. You can write it up on a word document, you can get a sample though web searches, I'm unsure if BP still offers resources such as contracts. You should absolutely consult a contract attorney to ensure the note is legally binding as certain states rules are very specific as to the criteria of a legally binding contract. Nolo, is a great website to ask attorneys questions regarding these matters, or simply pay an hour fee to consult a local attorney. For interest rate, I would personally offer a few percentage points above what they can get at the bank to sweeten the proposition. However, it could also depend on your relationship with that particular family member, they may want to only help you out and ask for 1% of there return.

Hi @Justin Lehoskay Finding financial partners is one of the biggest hurdles Real Estate Professionals have to clear. The best way which works for me is to attend REIA meetups and let it be known your looking for private lenders. I also suggest reading Getting the Money: The Simple System for Getting Private Money for Your Real Estate Deals by Susan Lassiter-Lyons, it is known as the bible for how to find, meet, and gain partnerships with private lenders. BP also has a Network section with lenders, feel free to post deals in the BP Marketplace and you can also post a "Looking" post. Roughly two years ago, I received 100% funding letter of approval from Neil at Block M Investments. I simply called, we had a conversation, he verbally approved. I asked for a letter of pre-approval to send an offer for the deal. I didn't move forward with the deal nor the funding. However He is a HML source in my book.

Hi @Austin Wise fellow veteran here. Congratulations on your potential CONUS assignment! It is definitely possible to do. Advices is to have a good Property Manager in place, this ensures your sanity. If you haven't read Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-Of-state Rental Properties By David Greene, I would absolutely recommend it. He shares his systems and processes to find deal finders/wholesalers, real estate agents, lenders, property managers which he calls your core four. He also shares his experience and pitfalls to avoid. Let me know if you have any other questions!

Thank you for sharing your story it is very inspirational! I can tell you've spent a lot of time (money) on yourself, educating and reflecting. You've done a phenomenal job.

Hi @Joey Opiekun, Welcome to BP! 

This space has a wealth of information. If you find an answer in the forums, blogs, or podcasts. Feel free to ask, everyone is super helpful!

Hi @Joey Opiekun I'm part of a community with members who invests in the Greater Richmond Area. We have a meetup which is virtual and later will be hybrid. I've been part of that group for 2 years. They have been very helpful. A REIA branch is a great starting point. It keeps you focused, broadens your network, your investment education and it gives you a community.

@Samir Patel @Daniel Molina @Aditya Sharma Sure thing, contact Ana Jenkins at Home Dream Realty. She is the organizer who sends the invites out to folk. Nathan also has a very knowledgeable group who are constantly doing/sharing deals (SFR, Large MFR).

I house hacked while I lived there (VA loan), fixed it up during that time added an in-law suite in the basement (roughly $10k). I purchased in the area because I saw the potential. It is a developing community and seniors are retiring/selling there homes on a regular basis (Fredericksburg area as a whole). The express way was being extended to go from Fredericksburg directly to DC which is going to cut time from commuting. It is a gated community (Lake of The Woods) which means less competition. I've found deals there on Auction.com in the past. However, you must know, for any big remodeling/building projects there is an additional fee/day you have to pay to build, due to HOA policy. My tenants have pets and their credit was not the best, so my PM had costs associated with each which increased my cash flow.

If you are interested in the area: We have a REIA group, we've been meeting virtually. It is FredREIA, you can ask all the question in the world. We discuss the market every month (numbers from the MLS, deals, off-market homes for sale, etc). We are mostly local and invest in Richmond, Florida, Maryland, many of the members live in the Richmond and Fredericksburg area.

My take: 

I am planning on buying more homes in that neighborhood and the surrounding area. Depending on your strategy it may or may not work for you, for instance a strategy I've seen in the Fredericksburg area is to find homes with basements, rent the top and bottom. You may have to do some renovations to have it up to code, such as windows, doors for private entrance, parking spots etc. This will not work in Lake of the Woods, HOA prohibits more than one family per home. I want to buy and hold in Lake of The Woods in order to offer owner-financing, have great equity, low turnover, cashflow and help out families looking for safe neighborhoods for their children. It is a family oriented area that is not accessible to everyone owner-financing works for my strategy. As mentioned there are foreclosures available, as well as home that need renovations (i. e. some have 1970 decorations, and look like 1970 inside appliance and all).

I'd say decide on your main criteria and your strategy, that'll help you focus on a market.

I put it on the market last year, it took 10 days to find a tenant. This was in the beginning stages of shelter in place. I was fixing it up when the shelter in place order went into effect and it went in the market shortly after. It is located in "Lake of The Woods" to be exact. The tenants are phenomenal. I haven't had a problem with them. We do have an HOA, however for me it is worth it because of the amenities. The HOA is not awful the money goes into keeping infrastructure and the area is EPA protected so my grass doesn't have to be pristine, when I lived there. In order to incentivizes applicants, I did a two year lease option. There is a house next door with tenants, for the two years I lived there I've seen two couples move in, however it is a 2 bedroom home. The tenants had small children. The neighborhood is very family oriented as well. Quiet, Green away from the hustle and bustle of DC. It is a commute town, so is Fredericksburg folk commute to work to DC and Richmond.

@Daniel Molina Yes, Locust Grove VA! It is North of Richmond, roughly 45 minutes and 15 minutes west of Fredericksburg, VA. You may also want to look at Culpepper, VA if your interested in VA.