All Forum Posts by: Grant P.

I still plan on going, leaving work as soon as I can

Sounds good. I will try and make it.

Just stopping by to promote this meeting by bumping it up to the top.

I still plan on attending.

680 acre virgin development site in south suburbs of Denver, rare undeveloped site in prime location.

Mineral rights intact, potential for 1500 home sites. Can't post all of the details publicly, quietly listed as a pocket listing will never be posted on MLS of similar. If seriously interested please contact me for details.

I invest/live in Denver as well. I look at Metrolist data, and rely heavily on commercial/multi family data from the major commercial brokerages, just because there are teams of people working on this data. Typically you can access quarterly data for free on their sites.

I also attend countless real estate lectures/conferences that typically focus on market trends/conditions. These are happening all the time. Make friends with a commercial broker and ask him to forward you invites to these things.

I'm working on similar projects with commercial lenders.

While commercial lending brings a new set of challenges, IMO it is makes so much more sense. It is not underwritten on these arbitrary guidelines, but rather your specific project.

In my experience you will need a minimum of 30% equity in the finished project, and you will need a lender on board.

IMO the best strategy for something like this is to buy the property, contact an architect and pay him to design the project, then go to the bank to finance on the improved value based on the plans/development potential.

No matter what you do you will need serious skin in the game. As long as they know if you die tomorrow they can still make money you can find someone to lend on the project.

I would contact a hard money lender. With your personal short sale, my guess is that will be your only option.

Hard money lenders in my market will loan 50% of value with pretty much no questions asked. If you don't know what hard money is, do some research.

Typically we see 9-15% interest, with 0-3 points up front.

FHA is not as bad as it was when the market was down, but FHA brings appraisal issues.

The FHA appraisal sticks with the property for 6 months, so if for some reason the property did not appraise for the offer price, the seller only has one option if he wants to sell to a FHA buyer for the next 6 months-price reduction. Typically even if the FHA buyer was willing to come with the cash difference they don't have it, otherwise they wouldn't be an FHA buyer.

I don't even look at offers without calling the lender. So many generic BS lender letters and proof of funds letters floating around out there.

If I found out that you did not have the liquid down payment I would have thrown the offer out. Unless you were submitting an offer contingent on a sale of another property the long close would have been a red flag. FHA is also a big disadvantage.

I only invest in high end properties, in stable neighborhoods, with high end renters. Call me crazy but I would rather not deal with $1,000 a month rentals, and the renters that come along with them.

I have a very different strategy than most on this site, but for me it works well.

I was renting a furnished rental in Cherry Creek at $6000 a month, debt service was $2000. Calculate the cash flow on that.

If you look at my numbers I have about 250k in equity in the property, I could get higher returns if I adopted the strategy of many on the site, I choose to do things differently and have been EXTREMELY successful with my RE investing.

I also bank on appreciation, which according to RE investing rules is a big no no.