All Forum Posts by: Don-Carlos Moniz

@Emyrson Charles,

Welcome to the forum. If you are looking for SFR or small multifamily in the Fayetteville area, I would recommend reaching out to @Dan DiFilippo.  I can't recommend any agents in Jacksonville, NC - I haven't worked with any specific to that market.  If you have any questions, don't hesitate to ask.  Someone is bound to have an answer.

Don

Jorge,

Good post - I have not read through that research yet.  Before I got into real estate, I completed a Master's in Public Administration - research for my capstone included affordable housing from a policy perspective.  

The disbalance will continue without fundamental changes in how we approach affordable housing.  Every year the number of total units needed goes up, and the overall percentage of units considered affordable goes down.

Under our current model, we can not build or tax our way out of the problem.  Margins for builders are too narrow, the bureaucratic process is too slow, and political division undermines governmental programs.

Our societal obsession with stuff and the need for bigger, faster, and cheaper doesn't help either - but that is a different post.

Thanks for the information - I'll have to go and read the report.

Don

@Nicholas Klus,

That's exactly what I mean by attorney state.  All real property transactions must be handled through an attorney licensed to practice in NC.

Don

@Nicholas Klus,

Welcome to BP.  There is a standard contract that real estate agents can use in NC, but no law dictates the use of a particular contract.  Many generic contracts are floating around the internet - while they may suffice in most cases, I would encourage having an attorney draft a simple contract.

I would also encourage you to have a discussion with an attorney about the current state of wholesaling in NC.  There has been a growing push in many states to curtail wholesaling, and NC is no different.  I have seen a trend toward double closings - be aware that in an A to B to C transaction, you will not be able to C's funds to close.  Transactional lenders can provide funds for the A to B closing if you don't have the funds yourself.

I don't know any specific contract considerations for a flip.  There are market, holding, and lending considerations - but, in function, these are not unique to NC.

I interact with a lot of folks in the investing space, so I keep up with trends, but not all of the details.  An hour or two of your time and some attorney fees will more than pay for themselves.  North Carolina is an attorney state, so building a relationship with a closing attorney is time and money well spent.

If you have any questions, don't hesitate to ask.  There are a lot of knowledgeable folks on the forums.

Don

@Gechi Erinne,

Welcome to the area.  There are two active local meetups.  One is Pints & Properties, which is normally announced here - I think they are on the second Saturday of the month.  The other is the Real Estate Church on the third Sunday of the month.  I'll PM you a couple of contractors you can try - most good ones stay busy.

Don

@Varun G.,

Welcome to BP.

I second what @Nathan Gesner said; crunch your numbers - the Raleigh area has exploded in the last couple of years.  I have worked with a number of folks that have started their search in Raleigh but have moved into the secondary markets because of costs.

If you are in a position to purchase cash, then I would recommend trying to network with some wholesalers.  Even then, you have to stick to your numbers.

If you are in the Raleigh area, try going to one of the local meetups - you can learn a lot from other investors.

If you have any questions, don't hesitate to ask.  The community here is very responsive.

Don

Artie,

List price should be a secondary consideration (or lower).  Run your numbers and make your offer based on that underwriting.  Buying the wrong property can cost you more than the tax hit.

Most commercial properties with a list price are either priced at or over value - with the latter being more common.

If you are way off the list price, you may want to move on to the next property.  It may be that the seller has unreasonable expectations of the property's value.

Good luck, and if you have any questions, don't hesitate to ask.

Don

Cherie,

Fayetteville/Hope Mills is a good area for investing.  Other areas to consider are Raeford, Sanford, and Cameron (all part of the Fayetteville MSA).  I recommend reaching out to @Dan DiFilippo; he is a local agent that works with investors.  The firm he is with also does property management.  Spoat, Jackson, and Browne is another local property management group I like - they work with investors and host a local meetup.

@Robert Shortsleeves is a local wholesaler that is always sending out properties.  You can reach out to him and get on his mailing list.  You can probably find a decent property through a wholesaler as a cash buyer.

North Carolina is an attorney state, so all property closings have to be handled by a licensed attorney.  I have worked with several in the area and have had no issues.  You don't have to use an attorney local to Fayetteville - they just have to be licensed in NC.

If you plan to purchase cash, that opens up several options, but most investors will encourage you to leverage your funds. At a 75% LTV, you could pick up 2 or 3 single-family properties that need light work, and still have a healthy reserve. Of course, you can use the BRRR method - always a popular topic on BP.

If you have any questions, don't hesitate to ask.

Don

@Glenn Clovis,

As @Ryan Kelly said, look to smaller markets.  I am not familiar enough with Texas to recommend any, but in North Carolina, Winston-Salem, Jacksonville, and Fayetteville are a few that come to mind.  @Henry Lazerow makes a good point - small MF that is leveraged conservatively should provide very favorable returns, and @Glenn Clovis makes a good point about the Midwest markets.

While I like NC and most of the Sunbelt, there has been a lot of movement into these markets, pushing up purchase prices.  Make sure that you are picking markets that support your investing goals.

Your cash position would easily support a property in the $1.0M to about $1.7M range - good size property, but not too large.  If you are debt adverse, I will encourage you to buy the largest small multifamily you can.  Preferably a property in a stable or growing market with low maintenance costs and low tenant turnover.

There are a lot of different measures of a property's performance, and they each have their merits.  Pick the ones that work for your investing goals and stick with your numbers.  Don't let us dissuade you from a methodology that supports your goals.

@Gerrard Allam,

This is from the FHA website "FHA mortgage loans don’t require PMI, but they do require an Up Front Mortgage Insurance Premium and a mortgage insurance premium (MIP) to be paid instead. Depending on the terms and conditions of your home loan, most FHA loans today will require MIP for either 11 years or the lifetime of the mortgage." (https://www.fha.com/fha_articl...)

If you already have an FHA mortgage, everything you paid should be covered in your closing and loan documents. If you are looking to get a mortgage, then talk to a good mortgage broker - they should be the most familiar with the current requirements.