All Forum Posts by: Greg Moran

Soliciting input and feedback on my most current private money lending deal. A rehabber that I work with acquired the property linked below at foreclosure auction, and I'm curious about what a "full rehab" would mean here. Anyone have guidelines (avg $/sqft) on cost to completely renovate in a B- neighborhood in Roanoke, VA? We're looking to close in 2 weeks, and I need to figure out the structure of my loan (principle, construction progress payments, monthly interest only payments, etc.)

Thanks for any and all comments.

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*This link comes directly from our calculators, based on information input by the member who posted.

Here's another "Crazy" idea... Look now in the San Antonio market! That way you're planting seeds for your future move AND not waiting = best of both worlds. 

Combining this with other's previous advice: buy a small multi-family (2- 3- of 4-plex) in San Antonio now. That way you'll already have somewhere to live when you eventually move.  In fact, it may help speed up the moving process.

Good Luck!

@Jeff, Considering I lost no money on this deal, and kept all relationships positive... I'm not sure what there is to "avoid". It absolutely was a learning experience but I would not do anything differently next time. I've talked with the rehabber, Jack, who bid on the foreclosed property at auction, and even he said there was no way to know ahead of time.  The courthouse steps is a higher-risk situation where you can absolutely loose if you aren't able to close in time (usually within 2 weeks). Not a place for beginning investors like me to play in.  But Jack has made his career out of it, so I was relying on his experience.

Do/Did you invest in VA?

I've heard good things about Mid South Home Buyers. One of my coworkers owns several properties from them. 

https://midsouthhomebuyers.com...

Investment Info:

Single-family residence private money loan investment in Roanoke.

Purchase price: $58,000

UPDATE(8/15/19): Deal fell through. The property already had another Lein that was not disclosed during the foreclosure auction. Being unable to secure a clean title meant that I would not be the 1st lein holder to get paid back. Unfortunately, the rehabber who did the bidding lost his earnest money, but there are more in the pipeline.

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First private money deal in works! All photos are various stages of "before" from inhabited... to vacant... and then foreclosed.

What made you interested in investing in this type of deal?

I am looking for the most passive way to invest in real estate and, through a Bigger Pockets contact, found a rehabber that needed small amounts of additional capital.

How did you find this deal and how did you negotiate it?

The rehabber went to the foreclosure auction at the courthouse steps.

How did you finance this deal?

I'm the private money lender, and I use a self-directed ROTH IRA to fund real estate deals.

What was the outcome?

Deal fell through B-(... But looking for the next one now

Additionally, I have family in Texas and was contemplating an out-of-state investment project. However, I ultimately decided against it because I'm still active duty and my current assignment is 60+ hours a week with about 75% TDY travel. 

Howdy Herson, 

You're researching exactly what I (and many others) have been doing. I'm currently using my VA loan for a primary residence that has a basement 1B/1B in-law-suite. We're renting it out to offset the higher housing costs in DC, knowing that any months of vacancies would need to be covered by us, until we get the unit filled again. I'm happy to answer any other questions, if i can!

Respect,

-Greg

Howdy all, I just heard about a land development going on near Pagosa Springs, CO. My parents emailed me last night with a surprise saying that they are considering making an offer on one of the plots... I think this is the second phase of Elk Park Meadows community. Obtw they said they're going to do this next Monday, so I'm trying to scramble to find out what I can!

Does anyone have good background info on Pagosa Springs, or the Elk park meadows development? I'm looking for local comps, Investor-friendly realtors, home builders in the area, etc. I'm doing the basic Googling myself:  demographic data, population growth rate, and Zillow listings... But I'm not sure where to start on this one. I'm just trying to learn all I can to help them in the next 2 days! 

Thanks to anyone with helpful background info! 

With respect, Greg 

@Tyler Schochenmaier, right now I'm in a house-hacking situation in a DC row house, but that took a large chunk of my available investment capital. We love the area (for potential appreciation, for access to Shaw nightlife, and for the more authentic feel of the "historic" neighborhood). I'm also active duty AF, stationed at Bolling AFB, so I'll be happy to chat with you. I had a similar ("tired of paying rent to someone else's passive income") mindset.

One note of caution is that home ownership comes with a bunch of additional responsibility, and so your decision MUST factor in all the work associated with the upkeep and maintenance of the property. I know some folks that own rental property, but still live in an apartment because "not

wanting to pay rent" is less of a motivation than "wanting to start making passive income!" good luck with your PCS!