All Forum Posts by: Elizabeth Newcombe

I am realtor so I send comps from MLS, I do get a rough estimate from a contractor if possible or price it out myself and add a contingency. I'm getting licensed in RI now, and I'm an investor friendly agent--that's our company's niche :) Message me if you want to connect. I'm happy to help.

Pretty much if you find the deal and send the lender the numbers etc, they will respond with "yes that looks good, we would lend on that" or not. You really need to have something to present on a possible transaction in order to get a hard money lender interested, until you have some relationship and they know you know what you're doing. This is what I'm doing now: I find a property that looks like a good flip, I use the tools on here and make sure I will be into it under 75% of ARV, talk to contractors, price out the renovations, check comps etc. I send my hard money contact the numbers from the calculators on here, tell them why it's a solid property, good area, etc, send comps, estimated time for project, and they let me know if they will do it. Find the deal and finding the money will be easy :)

OK Kristi, definitely. Will keep you posted if it comes together. Msg me more about what you're looking for in case I come across another one too.

Liz

It's a couple blocks from Brown. Straddling Fox pt and College Hill/Wayland. And there are a load of high end condos that have sold on this street. The Church next door was converted into beautiful condos, many of which sold for over 300k...

Thanks Ann, 

Good to get perspective! Lol, I was estimating a year and half for worst case scenario based on a conversation with an investor who is doing these, and said to do my numbers expecting EVERYTHING to go wrong and it to take 1.5 years and then try to finish in 6 months. Of course I would try to price them to sell in a month, but if I had to hold them for 1.5 yrs I would make $100k+, much more if they sell right away, but I see what you mean. I did start with comps, figured $240k per condo is fair market value. I did factor in all the costs, tax, interest, points, water, gas, electric etc. I factored in $10k for closing costs on the front end and $5k per unit on the sale end, +2.5% commission for realtors for each condo ( I will list it). And I doubled the reno budget. There are a lot of condos selling on this street, and in this area, I just am not in RI MLS yet as I am in process of getting my reciprocal license, and currently just have MA MLS. So my hesititation comes from not having an accurate read on how fast condos sell, and that is what I need to determine. I am also nervous simply bc 2 would have to close simultaneously for the mortgage commitments with a new condo association. But you're right, I need to study the condo market more thoroughly, sales prices and speed with which condos sell, and if that doesn't look rock solid, I will scrap this idea and I have a buyer lined up who I can sell it to as a 3 fam. Thanks!

Thanks guys! 

Yea, one of my colleagues is doing condo conversions in Boston area with great success, but in Boston the market is so hot that you can't really go wrong. If I did this and the condos sold (even if it takes 6 months to renovate and a year after that before they sell), I stand to make $100k+. There is some wiggle room there where I could drop the prices lower if they were not selling at $240k, and still make a great profit. And this is assuming that I pour $50k into each condo, and I honestly don't think they will need half that much to really shine. I save my half of the commission on the sale end, bc I am a realtor. 

But as a triplex, I prob couldn't get much more than $400k, and would probably only do minor renovations and sell to an investor friend. I would have to decide to do that instead of the condo conversion from the get go, bc if I pour a bunch of money into high-end condo finishes, even though the units would rent for more, it won't add enough value to the property to make my money back. I have to pick one strategy and see it through. Or wholesale it. ...Thanks for the cautionary advice!

Liz

Hi RI Investors, 

Looking for input. I have my eye on a 3 family property in Fox Point, Providence. I plan to do substantial renovations to turn the units into high-end condos and sell them individually. The only way the numbers make sense is if I do a condo conversion like this--The owner owes almost as much as the home is currently worth, so trying to whole-sale or do a traditional flip doesn't make sense, and i am not in a position to buy and hold it. I will be using a private lender, possibly combined with hard money. Is anyone doing condo conversions in Providence with success? I mean this is an amazing street, excellent, super walkable neighborhood near Brown and Risd, the best of Providence. My only concern is how fast and for how much condos are selling, if there is really a market for condos (I would need to sell them for approx. $240k each--2 bed, 1 bath, 1050 sq ft., luxury finishes). I anticipate the project start to finish, from purchase of the property to sale of the units, to take 18 months. I hope it will take less time, but with renovations and condo docs and having to close 2 units at once for new condos, I figured factoring holding costs for 18 months would be wise. I am confident in my construction team to do a great, efficient job, but if I can't sell the condos, there is no way this will sell as a 3 family for as much as I need it to in order to get my money out of it in the event of a worst case scenario flop. Advice from seasoned investors around here? Should I go for it??!!

Liz

I can't do Wed. What about Thursday before you head to work Jessica? Should we all msg you our contact info Brett?

Thursdays are good!

Thanks for the welcome everyone, look forward to meeting, working and learning with you all!