All Forum Posts by: George Taylor

@Chrissy L. I grew up in PW County and that NoVA market has always been great as long as I could remember. Have you looked into that area compared to MD? I know a good builder there in the Leesburg/Great Falls area and have come across some pretty good deals on land in Fairfax and Loudon Counties. I know a lot of investors are drawn to MD automatically and don't really consider VA but there is a lot to consider there.

 The borrower up in IL is looking to build and sell several homes in the same development over the next year. Total in his build will be $200k and retail sales is $277-$300k. Very quick turn around. My personal opinion would be to get in and out in a new development for a home or two. Then if you see they are selling quickly either you can continue that business model or start to hold onto them as rentals as you know the area is good. As you know already, up there either the market is great for sales immediately or rentals a few years later. 

 Your return would be great in DC but that property is so expensive either you would have to find the diamond in the rough or a revitalization area that no one knows about, yet. One example in the Fairfax County area, right off Rt. 29 I was looking at a few months ago. It's called Bull Run Estates. The lot was going for $300k, I could get a builder in with a 5k sq. ft. home at $300k. Comps were going in the same neighborhood easily at 1MM - 1.2MM. Much higher return and the lot backed up right to the water. I've know the project manager for that builder since I was a child so they know their stuff. 

Ok I gotcha.. Well the biggest issue that we have come across with an auction of any type was back taxes so I stand corrected @James W. As far as your own occupied home, that's where I jump off the train since that is strictly a residential lender issue and my knowledge comes from the commercial side of lending. Anything to do with owner occupied homes is an automatic dis-qualifier for a HML.

@Edward Stewart I would suggest borrowing the money for down payment(s) on HML's. Once you do a few fix and flips then you should have enough capital built up to be able to perform the BRRRR business model. Or to get started with VERY little money you could look into wholesaling to do the same thing to build your capital. I personally know an investor who made $60k on one wholesale deal and one who made $400k on a fix and flip with $135k of his own funds in the deal. You would just have to narrow it down and see what work for you, then sell it to your backers.

Hi @Chrissy L. I don't have knowledge of that particular development but are you looking to build and hold or is the market well enough to where you would be selling to a retail buyer within 12 months? I'm helping a borrower in the Chicago area where he expects to sell the new construction home within weeks of the build because of the area, just to give you a reference point. a HML would be perfect for you if you were planning on selling immediately after building or within 24 months at least.

@Morgan Carmichael You can market and sell the property yourself, right? Or is there something in the sales contract where they have exclusive rights? If not, put that up in the BP marketplace!

@Shalabh Jain It does depend on how quickly you have to close as well. So are you saying that you will pay cash for the property and rehab then look into refinancing? If so, are you looking at a buy and hold plan? On a conforming or conventional loan you have to come up with a lot of documents including your personal records as well as financials from the property, since it's a commercial property (investment). On a HML, yes the rates are higher but that normally gives you a 12-24 month window to be able to purchase and rehab the property and decide what you want to do with it before refinancing it. Please check out my website when you get a chance and I'm sure that will answer a few questions you have.

Sorry @Kelly Byrd I thought you originally posted this thread. I should've directed it to @Eric DeVito

@Kelly Byrd Conventional is great if you already have a property locked in. I would suggest looking into a HML as well since most sellers want a fast close, HELOC would work, well for this type of business plan as well. If you already had an investment property that had equity you could do a cash out refi on that and come up with the cash for your next investment through a HML without having to go through the traditional means of obtaining a HELOC and being able to get the funds in about 12 days. It's all about the timing in this business as you've most likely seen so far.

@Shalabh Jain From a Sheriffs auction the title should come back clear, the only thing I can really think of would be back taxes. As far as the refinance goes. It depends on if you want to roll straight into a HML which a lot of companies don't require seasoning, or you want to get long term financing which will require 6 - 12 months seasoning. As far as the value goes, if you plan on refinancing it without doing any repairs then it would be based on fair market value most likely done with just a BPO. If you want to have it done via full appraisal after repairs then those repairs will most definitely reflect your repairs.

That's crazy...lol