All Forum Posts by: Geordy Rostad

@Patrick Menefee

There are several different approaches to doing this sort of deal. You could buy the building and give everyone a notice to vacate within X days depending on your local laws. Then you could renovate the property and re-rent it out. Many investors like this approach and feel like it's clean.

If I was a tenant there, I would NOT be pleased if a new owner came in and jacked the rents way up right away and then started doing a bunch of extensive construction. Would I stay? idk. I guess it depends on the market.

You should be talking to the property manager you plan to hire already. They will be able to guide you through doing some of this in the best order.

I know you're kidding on this but there's a better way here as well. Cash for keys. Much cheaper than an eviction and much more legal than your other method :-)

"If they don't, I put a loud noisemaker outside their window and bother the $h!t out of them until they leave. Jk"

@Kim Rosinski

You can't really twist anyone's arm in a situation like this. They are either interested in selling or they are happy to let it rot while thinking they are sitting on a goldmine.

I have some advice.

1) Keep doing what you are doing and be persistent. 

2) Go talk to the neighbors of the homes. The neighbors will definitely want to see these properties move to new hands and be cared for again. The neighbors will have lots of valuable insight and once they figure out that you are there to help solve a problem they have, they will be glad to tell you everything they know in most cases.

When I was a baby broker just learning the ropes, one of my trainers said something that stuck with me for all these years:

SW SW SW

(Some will, some won't, so what)

@Stephen Kleyn

Fixall is a filler that's pretty commonly used but I'm not sure about flexible. You might want to do a bit more research on alternative fillers. I'm sure there are ones that will flex a bit and hold up a bit better.

The only reason I mention carpet is that it might allow you to get something cheap in there for now and then later down the road when your cash reserves are built up and you are ready to turn units, you could redo them the right way with the 1/3" ply. 

@Stephen Kleyn

How many units are completed so far and ready for new renters? If it was my project, I would try to focus on getting people into a few finished units ASAP just to cut down the bleeding of 16 empty units.

The 1/3" plywood is probably a good suggestion and is probably the correct way to solve the problem.

Fixall and a belt sander will probably also do the trick to solve the problem for a little cheaper but a bit more labor.

Alternatively, some carpet with thick pad for now could also be a reasonable solution.

@Patrick Philip

Yes, that is correct. In those cases, the zoning most likely already supports the new use they are proposing. 

If you find a deal like that and you want to do your due diligence, you need to just go down to the city or county and meet with the planning department to discuss the usage and potential issues you might face. The city/county should be able to look up nearby recent subdivisions and tell you what kinds of things were required for those projects.

A subdivision project can have a lot of unknowns up front. The costs of doing all the civil engineering and bringing in utilities to fully develop the land and make it ready to build often surprises people. The planning department is the place to start though.

@Stephen Kleyn

How much damage? Can you replace a few sheets of subfloor here or there?

The plywood doesn't float, right? Can you use some fixall and a belt sander to level it out a bit?

@Marc Luzuriaga

I have a situation sort of like this where I have a sizable HELOC to invest. I am mostly focused on BRRRR to try to build up some rentals. I'm looking in state and seeing things that could BRRRR around here almost every week believe it or not. These deals are hiding closer than you might think. I have found them in Marysville, Des Moines, Sumner, and even Bothell in some cases.

I'm also looking out of state for BRRRR deals.

At first, I was laser-focused on building up a multifamily portfolio but after seeing some of the numbers, I think BRRRR makes way more sense at this stage.

@Patrick Philip

Changing zoning is a big deal. Especially when you are trying to go from agricultural zoning to something like 4-8 houses per acre. That will involve major planning meetings and public hearings. Trying to approach something like this is most likely a complete waste of time and effort... unless you have carefully studied the city/county grow plan and you determine that this zoning change is one of the next logic steps within the course of that plan. If you can suggest something that makes complete sense like this, then you might have a shot at it.

One thing to keep in mind though is that often agricultural land can have major wetland issues or be in a floodplain, etc. If this is the case, the change is even more unlikely to ever be approved.

@Mark Pijanowski

It's unlikely you will be able to purchase land with hard money. It could take you many months to even pull permits and a savvy HML will know this. Also, an HML would NOT want to risk taking back raw land.

You should write up your offer subject to obtaining permits. So tie it up but don't close on it until permits are down at the building department ready to pick up. You'll need to spend some money on studies, surveys, plans, and engineering to do this but at least you'll have the property tied up.

Another thing you'll need for a lender is your bids for completing a home on the land or whatever your plan is. You'll need a good licensed general contractor to work with.

@Charlotte Dunford

With seller financing, literally everything is negotiable.

I will usually hand them a copy of my credit score/report because it's an excellent selling point for them to take a chance on me. I've never had a seller ask about my income or any of that though.

The most important things to sellers are usually:

1) monthly income amount

2) down payment

3) loan term