All Forum Posts by: Russell Brazil

Thanks for the suggestions. And I plan on sending a colleague request to you lenders.  i dont have a deal I'm working on now, I'm just looking to build some relationships for when one comes along.  Ive left my full time job, so I know that the next loan I get will likely need to be a portfolio loan.

I try to schedule 3 or 4 within a one hour block.  I find driving out to show a property for one individual is a waste of time as they often no show.  Also if you have your appointment overlapping, it creates a sense of competition, so you can usually get more applications in quicker.

Does anyone have any suggestions on portfolio lenders in the DC/Maryland areas? Thanks.

Thanks @Joel Owens.

I am familiar with all those issues. Yes renting is allowed in this complex. Actually the majority of it is renters, thus no FHA loans are available. And while it is a short sale, it is listed at the market rate for these condos. They tried to short sale this same unit about 9 months ago and it was not approved then, but now the owner has moved out and has stopped paying the mortgage. So the bank is in a situation where they can allow the short sale, or simply let it go to foreclosure. When it does foreclose and is relisted, it will only sell for about what they have it listed for now. I am sure that the bank would order a BPO, and the BPO price will come in within a few thousand of their listed price.

So I know there is little guarantee of getting it even if the seller accepts an offer, as I have never actually closed on a short sale Ive made offers on.  My strategy with this place would to be offer all cash with no inspection contingencies.  I would offer about 10% below asking price, and allow the bank to negotiate me up to roughly the asking price.  If they came in  and asked for significantly more, they just simply wouldnt get it from me or anyone else, as its currently market value is only about 1/3rd what it was sold for at the height of the market. 

I agree with @Johnson Elaju that Petworth is a great neighborhood to flip in.  Also Brightwood just to the north of that, Trinidad, and Brookland are all areas with good flipping numbers.

One thing to keep in mind though with a flip in DC is that this is not a paint and carpet type flip market.  Individuals buying flips expect top notch quality work. They expect high end fixtures, kitchens, etc.  You cant put that $29 a square foot Home Depot granite countertops in a kitchen here. Buyers know the difference between high, medium and low quality work, and expect the best here.

You should find out why they want to use those leases.  In the jurisdiction I live in, and have one property in.....the County insinuates that if you do not use the standard lease they have approved, that other leases may not hold up in court proceedings.  So property management companies in this county will only use that standard lease.  The laws here are highly favorable to tenants.

Im guessing theses companies may have at some point wound up in court and had other thought to be legal leases negated by the court at some point.

I have a clause in my standard SFH lease that says the tenant is responsible for the landscaping, and that upon routine inspections if the lawn is not mowed, then the tenant will be fined $100 in order to pay for a landscaping company to mow the lawn. I have found that after the first time you bill them for an unmowed lawn, it will almost never happen again.

Of course like with anything else, just make sure such a clause is legal in whatever jurisdiction you are in.

I just closed on a condo in Frederick MD.   However I do not have the unit filled.  Another unit has come on the market in Laurel, MD in a condo complex I have been trying to buy in for about a year.  I would be making an all cash offer on this new unit, but I am a bit hesitant to make an offer while I have a vacancy on the unit I just closed on.  Part of this hesitation is I just left my fulltime job to pursue investing (and being an agent) full time.  So I am a bit nervous of being on the hook for the expenses of two units and having them both vacant.  My wife however feels this other unit is such a deal that we should go ahead and make the offer. She feels it is worth the risk.  It should also be mentioned that it is a short sale, so any contract on it is likely to take quite awhile to close.

So what say you fellow BP addicts.  Should I take the risk and make an offer while having a vacancy, or play it more conservatively and pass on it till I get my other unit filled?

Thanks @Joe Villeneuve

Welcome @Mark Sidorczuk . There has been some talk in another thread about a possible meetup of investors in the Gaithersburg/Rockville/Bethesda area. A Justin B from Gaithersburg was trying to get one planned I think