All Forum Posts by: Garrett H.

@Adam King Thank you Adam, extremely kind of you. 

@Adam King thank you for the thoughtful response and reality check with all the concerns and consequences. 

Excluding the reality of the structure - do you happen to know anything the installation of a meter for RV staging and what might be involved with those prerequisites? 

Hi All, always interested in these weird, unique opportunities and this one is a property with an unpermitted "incomplete" tiny home basically. "Has water to it" but no electrical from the grid. This is unincorporated San Diego County. 

Would I be correct in assuming that to value this property I would have to look at it as if it was vacant versus putting value into it with the structure? I know that a person can do retro build permits but have never done it and understand that can be more money and time if the structure basically to code. 

Anyone purchase anything like this and salvage an unpermitted bldg by flying under the radar or too risky? I want to envision that there is a path where I could complete this and rent it out. Also, can an unpermitted build ever get approved for getting electrical ran to it or do they have to communicate with the county regarding permitted structure first? Thank you as always for any thoughtful responses and your time. 

@Mason Weiss Thank you for the advice and I might reach out for that broker recommendation. 

@Austin Clarence thank you for the suggestions. In regards to putting a down payment on and financing, would that be a traditional loan through the Fannie Mae Freddie Mac criteria of evaluating DTI?

@Tienna Matthews Thank you for the response and all of that info on lending options. That approach sounds pretty straight forward to me. I'll reach out to ya with a couple questions.  

@Chris Seveney Hey Chris - thank you for the response here. We were hoping to buy for $1 mil and then hopefully add value to it with some upgrades. $1.2 mil is the estimated worth as is. What metric do you like to use to determine if a deal is worth it for you? Looks like you're hoping to get $500-600k out of your deal, is that approximately the amount you like to get in returns? 

@Erik Estrada Thanks for the response. I own a few properties in AZ already, so not sure if that makes a difference with having to do "both states" but I'm not up to date on those regs. 

Is it possible to do a HELOC or cash out by combining more than one property for combined equity or does one have to do a separate HELOC for each property until the desired capital is reached? Also does that require a refi on the interest rates if there is a mortgage currently on the property for doing the HELOC/cash out?

Hello All,

We’ve been offered an opportunity to purchase a single family home for $1.05 in Gilbert via a family connection and exploring the best strategy for purchasing and obtaining funds. House is worth about $1.2 million ish on the market as is but owner willing to sell for less. 

We would be looking to flip or hang on as STR.
We have maybe 10% down available but stretches us a little thin. We do have multiple properties with lots of equity that we have setup as STR and LTR. I’ve not done a commercial or hard money lender before so not totally familiar with all of the criteria and if that is the best option? Can we use equity on other properties as collateral instead of a down payment so we can retain our liquid capital? 

Thank you in advance for any suggestions. 

Arman,

Thank you so much for responding with your thorough analysis. I had another recommendation that we purchase the property at $300k down and then make interest only payments for 3 years to the seller so that we could obtain title immediately, then by year 3 we can hopefully refi. I wasn’t clear with this strategy tho if the seller would have to own the property outright or they could still do it if they have an existing mortgage on it? Let me know if you have any suggestions there. 

The commercial bridge loan sounds like an interesting product. I’m not familiar with that and will research that. Thank you again for all of the help.