All Forum Posts by: Jack Seiden

Looking to do my first flip, was originally looking at baltimore, but it looks like it's moving towards a buyer's market and inventory is very high so I'm looking for other hot neighbors with low inventory.

Thanks

I will need to find a small place for myself and rent out additional room if necessary. 

Taking out a mortgage may not be easy since I don't currently have a 9-5 job. Plus, the mortgage rate is still high and I am not kin to pay the high interest either. 

I understand there are benefits to a 1st time homebuyers but it seems like most are related to down payment assistance. Is there other benefits I will miss out as a 1st time homebuyer if paying all cash? Plan to purchase in northern Virginia or Maryland. Thanks. 

In dealing the new Real Estate Commission Law now in play.....Is anyone else getting Engagement Contracts sent to them stipulating exclusivity and buyer-responsible commission terms?...one that was sent to me says I'm responsible for paying 3%. 

How are you dealing with this? Are you forgoing realtors all together or negotiating better terms? I have never had to sign something like this and I don't like being tied down to one realtor. What are you all doing about this?

Hey all!

I will be moving to the Northern Virginia/DC area in a couple of months and would love to meet investors from the area as well as a real estate agent, insurance broker and/or attorney familiar with LTR/STRs. Lastly, if anybody has a recommendation for a leasing agent to find apartments for rent that would be greatly appreciated!

-Sam

I'm about to go under contract on a home zoned as R-8, which according to Redfin is classified as residential multifamily. It states that both commercial and multifamily uses are permitted. However, the seller claims he purchased the property as a two-unit dwelling based on Baltimore City public records, yet it’s not legally permitted as such. The GIS map designates it as a single-family dwelling, but the property is clearly set up as two units, with separate HVAC, electrical systems, etc.

My main question is: Would it be possible to obtain a permit to legally convert it into a two-unit property? Many homes on the same street are multifamily, and this property is optimized for a two-unit setup. If it’s feasible, how long might the process take, and what costs could I expect for the necessary permits? I believe I can demonstrate that the property was originally used as a two-unit dwelling, which could strengthen my case.

I want to ensure this deal is still viable and that securing the proper permits is realistic, as my financial projections are based on this being a multifamily property.

 The reason people often hire an agent is that they suck at negotiation. To now say that you have to negotiate with the negotiator is a level of XXXXX that needs to be taken out and shot. Would love to see Youtube videos from agents articulating to buyers on how to negotiate their fee percentages lower.

Is it wrong to believe that the NAR Settlement is evil for sellers who want their real estate agents to get the maximum value for properties they flip? Why does denying agents the ability to show a commission benefit anyone?

Would this not turn off buyers agents who don't know how to articulate their value from working harder? 

Would this not reduce the number of potential buyers brought to the table when the realtor can't use the largest marketing platform to its full advantage (aka the MLS)?

Good afternoon,

Long time lurker and podcast listener. Grew up in Memphis, TN, graduated from University of Memphis, then joined the Marine Corps. I did 12 years, got out last year, and started a defense consulting firm. I've been at it fully remote for nearly two years and I absolutely love it. But I'd also like to get into RE to leverage our current income to set up future wealth and (mostly) passive cash flow via LTRs on SFH/MFH/maybe some commercial. Not interested in doing the manual labor side or being a property manager (I'm "old" and arthritic and 100% P&T disabled thanks to the ole Corps!), but I do have 830+ credit, cash, solid income, and no debt save for a new vehicle that I can very easily afford.

We do need to buy our primary residence in April/May 2025. For that, open to a house hack. Since we don't have our primary yet, I feel like it doesn't make a ton of sense to get into buying rental properties and potentially hurting my own mortgage loan application. I do plan on using my VA loan.

I guess I'm just looking to reach out and interact with folks in the Baltimore and Memphis areas both. I'm leaning more towards investing in Memphis since I lived there for 24 years and have tons of family and connections in the city, but of course I'm open to Baltimore, too. I'm just newer here and can't speak to the nuances of certain areas as well as I could for Memphis. I will say: they're very similar cities in a lot of ways, but I'm not scared of it.

Please feel free to reach out, tell me I'm dumb, make a joke about Marines eating crayons - I'm here for it!

Nick

Hey everyone, my name is Peter Firehock, and I work in Alexandria Virginia as an Acquisitions Associate for a real estate investment fund called BPG Holdings, helping the fund source multi-family investment opportunities in Northern Virginia and D.C.m as well as an investment-focused realtor in the D.C. Metro area. 

This means I am constantly researching different sub-markets in the D.C. area to try and find the best locations for future growth as our fund looks to buy and hold our investments as do many of my clients. I believe Springfield Virginia is a great market to look at for future growth in the D.C. area. Particularly around the Springfield Town Center, where 2 million square feet of commercial space and thousands of residential units are in the works by property owner Pennsylvania Real Estate Investment Trust (PREIT), to be delivered by 2026.

Below I will go into the reasons why Springfield Virginia real estate market has strong potential for future growth in the coming years

Springfield Town Center is Approved to add 2 million Square Feet of Commercial Space and Thousands of Residential Units, Coming in 2026

Although many malls suffered greatly during COVID-19, certain malls have begun to make a comeback, such as the Springfield Town Center, which not only is at pre-pandemic levels of visitors and retail vacancy of 4%, but the average time of visit has increased for the mall. The owner of the mall, Pennsylvania Real Estate Investment Trust (PREIT) has attributed this to the mall's strategic positioning and continued development of experience-related retailers. This is evident already in the 32,000 square-foot Lego Discovery Center built last August, the coming Build-a-Bear to the mall, and community events PREIT has organized such as Taste of Springfield, and Cherry Blossom Festivals.

*New Lego Discovery Center, First in the D.C. area*

Certain retailers are also finding having a brick-and-mortar to be useful, especially in major destination points like Springfield Mall. Many people buying items online, especially clothes, very much appreciate the ability to have a store nearby to seamlessly do returns at. This is seen in Abercrombie and Fitch opening more stores for a consecutive third year in 2024, despite the recent negative sentiment around retail storefronts.

PREIT, seeing these trends, has decided to expand the footprint of the Springfield Town Center, by turning unused parking lot space at the mall into a mixed-use community hub. This includes 436 residential units (recently reduced from original plans of 460), a 5-story hotel, and 2 million square feet of commercial space, which has already been approved by the county. The development is planned to be completed by 2026,

Inova Franconia-Springfield (2028)

The Inova Franconia-Springfield is a massive hospital center situated between Kingstowne Alexandria and Springfield. Although this is technically in Alexandria, the hospital is just 1 mile from Springfield Town Center. In 2024, construction will begin for 985,000 square feet of medical space at the 21-acre medical campus, with completion scheduled for 2028. This class-A medical office and treatment space is slated to bring 1,200 new high-paying jobs to the district. The development has emphasized aesthetic appeal, creating 2 acres of park space with benches, using top-of-the-line finishes for the building, maximizing the preservation of trees on the North end, and improving the roadway of Franconia-Springfield Parkway and Beulah Street.

Source:
Inova Franconia-Springfield Hospital
Inova gets green light for new Springfield hospital from Fairfax County
Springfield Town Center Redevelopment
Other Recent Developments Worth Noting

The TSA moved their headquarters to Springfield Virginia from Arlington Virginia in 2020 which brought 3,500 new high-paying jobs to the immediate area. Also, the Springfield Town Center is just 10 miles from National Landing, where Amazon's HQ2 will bring 37,000 jobs by 2034

What are your thoughts on Springfield Virginia, or are there any other sub-markets in the Washington D.C. area that you are the most excited about for future growth? Send me a private message or comment below, I'd love to hear what you think!

@Jack Seiden

Great question: 

I am 60/40 stocks and real estate right now, excluding my primary (my investment in BiggerPockets as a private business). I'd feel more comfortable with 50/50, so the next big chunk goes to RE. 

A paid off property at 5-6 cap rate should also appreciate at about 3.4% per year on average, so my real estate return at 8.4%-9.4% is reasonably close to what I'd expect in the stock market, and the income is tax advantaged. A cash purchase, added to my portfolio, reduces my levergage ratio on my real estate portfolio, but does not bring it to zero of course as I am not paying off existing low rate mortgages on rentals. 

The alternative I had pursued the last two years was hard money lending. Even at a blended 13% rate, the after tax yield on these higher risk notes was closer to 7.5%, as I work full time and earn good W2 and other investment income. The paid off property is an attractive and way lower risk / less work investment from my seat. Further, a paid off purchase does not preclude me from refinancing in the future. And, there is every possibility that I am able to assume quality debt if I am a low-leverage purchaser. I'd be very open to that.

A High Yield Savings Account at 4.5% yields a close to 2.5% after-tax amount. I am not so scared of the market that I think I can't beat that with real estate OR stocks. I am not a bull on crypto. 

Thus, putting the money into something is the name of the game, when my Hard Money Note matures. Right now, I am curious about, but not anything close to sophisticated on, office, especially in the suburbs of Denver where I live. I think that urban office still has a lot more pain to go through, but I wonder if many people will want to get out of the house to work in the next few years, but not have to commute through to downtown. I know I like going into the office, but not every day. 

It's hard for me to imagine suburban office / retail getting hit harder than it already has, and a small building for small companies in the services field feels interesting to me - right now that's a "Feel" and I have to wrap my head around whether data supports this hunch or not, but I do at the very least like the fact that office has been hit so hard, and seems to have no net new supply coming online. 

I believe that when my last Hard Money Note matures (November) I will be able to find good value close to where I live in office space, and if I can't or am wrong with this hunch, can always do another small multiunit in Denver, which has been my bread and butter.