All Forum Posts by: Tim Spollen

@DeAnthony Edwards Yes - Ocean View showing lots of promise and infusion of RE capital in recent years and years to come - two new breweries, 55+ complex going up now near Marina, upgraded Marina, new restaurants, new townhome complex across from East Beach, new condo/townhome complex near OV pier...and more. As stated, not opposed to other areas but OV has lot of promise.

@Enriques Reyes I am local Hampton Roads investor looking for BRRRR (Have cash to purchase and would refi later) opportunities as well. Would love to see if you (or others) have potential wholesale deals in the area. Given input from others on BP over the years on Hampton Roads, I stay away from Virginia Beach and Portsmouth - focus on Norfolk (trying to find Ocean View opportunity for BRRRR) but look at others for deal analysis (Chesapeake, Suffolk, Hampton, Newport News).

Thank you!

Tim 

@Richard A. Very nice work! Gotta love the "Inf%" for Cash on Cash. I know I'm late to the market but I have been looking at Fayetteville for about a year now to do multiple BRRRR's. Do you have a contractor team you work with? A GC who you trust or do you handle it separately?

@Justin Robert @Anthony Smoke

Greetings - I am a solo 401k investor who has been researching Wilmington for ~ a year now (kudos to @Anthony Smoke for taking action!). For @Justin Robert - interested in your comment on BRRR not being great strategy with Solo 401k. Could you provide your thoughts? From my research, financing definitely higher and not sure yet if there are non-recourse vendors who do delayed financing option as discussed by @Alexander Felice (have a call into MC Mortgage Group out of Wilmington NC). 

However, my thought was with a solo 401k is you can still purchase with cash, pay for rehab with cash, let season 6 months and then refi and show comps with higher ARV. The downside is we (solo 401k investors) would have to leave more money in the deal than our conventional bretheren. For example, with a $50k purchase, $20k rehab and say a $100k ARV, conventional investors can pull all their funds ($70k) out with refi whereas solo 401k investors will be lucky to pull $60k or $50k out. Now, even if we can only get 50% LTV which would mean leaving $20k in the deal, assuming your rent numbers provide ~ $200 cashflow monthly would still be 12% interest on your funds ($2400 cashflow annually/$20,000 in the deal).

So, while not a "true" BRRR - could still perform same steps as BRRR just will not get access to initial funds right away and most likely will have to leave funds in the deal. But again - interested in your thoughts (or others).

Tim Spollen

@Justin Windham Thank you for quick reply. That is what I thought - follow up question: based on your experience, is it best to hold these properties at least 1 year to show the IRS that you are not running a fix and flip business? Ultimately, what I'd like to do is find a non-recourse lender who does delayed financing so that I can do BRRR's but my research is showing me that this may not be possible with a solo 401k and I may have to purchase with cash, wait 1 year and then refi....true? Thank you.

@George Blower I have a solo 401k setup and purchased a property (all cash) with it about 1 year ago. I had some updates done to the property (not by me - arms length) and was under the impression that I could now go get a non-recourse loan with an appropriate lender to refi it and get (depending on the lender) 65%-70% of my original cash out to reinvest somewhere else. I might be reading your post wrong above ("how much to lend to the solo 401k for the purchase of another property not to finance an existing solo 401k owned property.") but it sounds like you are saying that is not possible? Thanks - Tim

@Dylan Whittenburg Dylan, copy, if i come across anything in that price range will notify you. Seems like to get the rents you need, you will be in the 4/2 SFH range with > 2000 sq ft.

Break// Do you have any recommendations for title company, inspector, clean/turnover company and local handyman in your area? Trying to team together as I am out of state and need folks there to assist with closing and tenant prep and ongoing maintenance issues.

Thank you,

Tim

@Micah Stevens Hey Micah, we are somewhat similar (search of SFH 3/2 in Jack Britt school district) but being that we are out of state investors, are looking near-turnkey opportunities for cash flow (not BRRR). Sounds like you are "boots on the ground". We intend to manage it ourselves but so where we are struggling right now is the "team" we need to put together to close the deal.

Please keep me posted on your progress as it sounds like we'd be interested in properties you might decide to flip as opposed to BRRR.

Best of luck!

@Juan m restrepo Agree with above on "sell". Your percents for capex, maintenance and vacancy seem a bit low. Two other factors are concerning: inability to control hoa and 18 y/o hvac. Best of luck.

@Tammy Butcher

Welcome to BP! I understand that NOVA/DC area dilemma compared to other areas in the country that have lower entry points for RE investing. I lived up there for some time with my family but now reside in Virginia Beach. I did not grow up in NC, however, I am very interested in and have been researching areas like Wilmington, Fayetteville and Raleigh for buy and hold opportunities. Tons of knowledge and great people here to learn from. Best of luck.