All Forum Posts by: Deborah Pyburn

Looking for referrals for contractors in the Macon-Bibb area for ground up, single family new construction. Client looking to partner for repeat business with the right builder. 

Hi Glenn! You can start by looking for a local REIA (real estate investment association) in your area. Personally, I've made a lot of great connections with people here on the BP forums. I set keyword alerts for my area + specific investment strategies I was interested in and those connections have lasted for YEARS

Quote from @Avery Moore:

Hey BP,
I am a landlord looking to expand in rental properties. I've done it the traditional way of using my credentials; credit, job/salary, personal info. to getting a FHA loan. Although, initially the property was for personal use then things happened were I wasn't comfortable with the area and the extra space so I decided to rent it out, now its on section 8. After making that decision I later created a LLC but did not switch the property over to the LLC.

My 2 questions are:

1. Is there a way to purchase a property as a business move with your LLC instead of doing it the conventional way?

2. Would switching the property to my LLC help for looking for future investment properties?

Thanks!

Hi Avery. I would HIGHLY recommend acquiring all future properties under your LLC or business to protect your personal assets. It will also make year end accounting and reconciliation so much easier and showing your assets vs liabilities for future lenders - whether traditional or hard money.

Quote from @Esther Kamga:

Quote from @Deborah Pyburn:

Hi Esther! My in-laws live in Hope Mills and college bestie lived down the street from Bragg. There’s nothing wrong with your plan even with the delinquencies, it may just take you a little longer than you would like. The land purchase you could acquire out of pocket. Look into “land banks” and tax deed auctions for the areas you’re considering. You’ll spend more on surveys, permits, and building which is where you’ll need the financing or to pay directly over time. I’d be happy to discuss more with you whenever you’d like. 

Hi Deborah! Just read your suggestion and it sounds interesting. Your suggestion if I understand correctly after googling the terms, is too look into county owned properties or lots? Tax Deed auctions look like the homes that belong to the the county. How much are the bids for those types of home? As for the land banks I can see the the bid amount on the county website. But I think im worried about whether or not I can get my deposit money back if someone else bids more than I have.

I know a little about permit expedition, if that can help me save money. 

My Main question is - How can I acquire land out of pocket. 

Right now our case is under review with the underwriters and we’re waiting to hear back on how much we can pay monthly to help us get back on track. 

I haven’t researched the local NC land banks but I know the ones in GA are more of an “application” process. They don’t have a multiple bid system. They want to know your plans on how to develop and revitalize the property. Sometimes they’ll ask for contractor info and proposed construction plans. You buy the dirt outright and develop on your own dime (direct financing, construction loans, HML, etc).  Vacant lots can go for as little as $5000 - $7500 and are usually between other houses so you at least know utilities should be on or near your site. 

And to be clear tax deeds is COMPLETELY different than land banks. Land banks, the city actually owns the property and can transfer it to you after the application process I mentioned above. Direct dealing with the Landbank Authority for that jurisdiction. Anything related to tax deeds deals with paying back taxes, potentially involves bidding against other investors, and had some delays in acquiring clear title to the property. 

Hi Esther! My in-laws live in Hope Mills and college bestie lived down the street from Bragg. There’s nothing wrong with your plan even with the delinquencies, it may just take you a little longer than you would like. The land purchase you could acquire out of pocket. Look into “land banks” and tax deed auctions for the areas you’re considering. You’ll spend more on surveys, permits, and building which is where you’ll need the financing or to pay directly over time. I’d be happy to discuss more with you whenever you’d like. 

Welcome to the investment world Shawn! I’m glad you’ve identified the first vehicle you would like to take. Next, start identifying the type of tenants you may be open to and this will help focus your strategy. If you want to rent to college students, you could rent by the room for 10 month leases and if the location is right, Airbnb the property during the summer months. If military tenants are more your speed, you’ll want to ensure your properties are an easy commute to the military base. 

Hi Karac! I'm going to send you DM to help jumpstart your brainstorming for more buy and hold investments. For now, I'd recommend further honing in on your niche to help you identify the right properties for your goal. Example - could you increase ash flow by acquiring a SFH near a college campus but charge rent by the room? Open to out of state investing - consider buying near some of the larger military bases and take advantage of military personnel utilizing their housing allotment to pay rent.

Go visit the planning and zoning department in person. Most are actually pretty helpful if you reach out and ask questions in advance vs being hostile when they make you jump through hoops completing applications and preparing for the P&Z hearing. If you would like assistance navigating this, feel free to reach out. I’d be happy to assist. 

Hi Jabneel! My experience (pre-Covid) with section 8 was there were A LOT of people searching for homes with their vouchers but a shortage of landlords either qualified or willing to accept Section 8 tenants. Specific for the Atlanta Housing Authority, you have to attend the landlord/property manager training session to even accept a section 8 tenant. My first mentor had a love/hate relationship with the program because of their rules about repairs and withholding payments.

A new survey might be beneficial. Not just for stakes but you want to make sure no neighbors or utility companies have recorded easements near your property that could potentially impact the placement of the fence.