All Forum Posts by: Roselynn Lewis

Any suggestions for a property management firm in Bowie, MD? Looking for a hardworking firm that acts with integrity and seeks to increase property value.

William D. My friend's credit score in the 500's (not good). But does have a good job as a consultant for a major consulting company. Recently completed a masters degree so if the person changed jobs would get increased pay.

I got approached by a friend with the following; I would like to know your thoughts on a possible course of action for my friend:

I have a three bedroom townhouse which I bought at the height of the market in 2006. I bought it for 400k. It is now worth 170k in terms of market comps. I am paying 2300 a month.

Room rentals are about $600 USD per room in my area. I have a basement which is semi-finished.

Thoughts? My thought is that she adds a fourth room in the basement and rents out the entire house and just holds it for the long run. She is considering a move to another state for other purposes.

The friend is thinking of just walking away and letting the bank foreclose on her. She already got the mortgage adjusted to this new lower rate.

Marc Ramsay Thanks for your input.

J Scott The questions are very useful. Thanks

Marc Bodinger Yes, there is a huge relief that we are not over the cliff in these parts. However, I guess it will be a repeat in a few months. This transaction is not in the Northern Virginia area as this are demands much higher prices.

Frank Gallinelli Thanks for making the idea explicit. I will hold this in mind for my investing career. As Kyle Zaylor suggested, I will get your book. Thanks Kyle

Robert Adams Thanks for your suggestion. I think this is the approach I will take. It seems to have worked out nicely for Brandon Turner

Glenn Espinosa Thanks for your thoughts. I am actually going to be doing a much smaller transaction prior to this one, I am trying to get ahead with my analysis at this point.

Prashant P. Thanks I will look further into using a bridge loan.

James Vermillion Thanks for your questions it really helps my analysis. It seems then a better approach for now given my starting point would be to purchase an already functioning 24 unit apartment complex and upgrade the building the complex. How does the rehab work if it already occupied? Do you have to wait till each occupant vacates or is there some other work around?

Marc Bodinger Thanks. The best part is that I am just looking at this scenario of action. I think a different approach is required.

Thanks Prashant P.It is a 24 unit apartment, so it is a commercial property. It is vacant so it is a complete rehab. So what would be my funding options?

Say, I purchase a small distressed apartment complex for 500k that is valued at 600k. I renovate the apartment using an equity line (Is this a good idea, in terms of the source of funds?) My goal is to renovate the apartment and get it to 100% occupancy and sell it. What could go wrong with this transaction? What are the hidden costs? Assuming it takes me six months to turn it around, what sort of return would I be looking at? Or what factors would determine my return? What other strategy could I employ? How do I mitigate what could go wrong? Any thoughts welcome.

@Bryan Thanks for your response. Focusing the conversation on how their interests are protected is very important as you mentioned. I will also look further into working with a securities attorney as the required. Thanks again

Jeff Greenberg Thanks for your response. The purpose of the partnership is to bring together all the essential resources you mention -- time, money, credit and experience. It is a partnership between people with existing relationships. The funds will be protected using multiple built in strategies. I will also do further research you suggest. Thanks again.

If you were pitching to a group of potential partners to collectively purchase an apartment. What would you include in the pitch?

So, if I am going to be setting up a partnership to purchase a small apartment. My plan is to create an LLC just for the partnership. Any thoughts on setting up partnerships and what to look out for? How does it work with the free cash flow after all expenses are handled and funds have been set aside for emergencies? Is there a standard way to handle this? Are funds disbursed monthly or periodically or just as agreed?