HISTORIC PRESERVATION 101/201
Good morning! If you, or someone you know is looking to eat more plant-based foods, mark your calendars for the upcoming food festival below:
Vegan SoulFest – Baltimore, MD
Saturday, August 25, 2018
Down the street on Arena Drive at Brightseat Road, lies a hotel construction site, that will soon become the home of WoodSpring Suites. Visit the below links for more details about this latest development, that will provide an economic boost to the Largo Town Center area:
PG County Planning Department – Detailed Site Plan
Sandpiper Hospitality – New Projects
WoodSpring Suites Hotel
by Tod Snodgrass
The one thing that most real estate investors (REIers) never seem to have enough of is capital. That is because whether you are a wholesale contract flipper, rehabber (fix/flip), builder/developer, or you wish to acquire properties to buy and hold, the one common denominator that cuts through all of those REI methodologies is the need for investment money from time to time.
Of course, there are many, many sources of outside capital available: Conventional financing (from your bank), private lenders, hard money people, etc. However, identifying the most cost-effective financing that meets YOUR particular needs (and which may change over time), THAT is the critical challenge faced by most REIers.
Basically, you have two choices: Use your own capital (cash, credit) or OPM (Other People’s Money). One good money source of OPM are Hard Money Lenders (HMLers). For a long list of them, see biggerpockets.com/hardmoneylenders.
Most HMLers usually want deals that are 12-24 months in duration, and for more than $100,000 (though there are some who will lend less than six figures). They also want you to have some “skin in the game”. That is, they require that you bring say 20%-30% of the total costs of the deal to the table (your own money/credit, private debt/equity, etc.). Further, they often require a reserve account of some sort to cover payments for expenses that may be required down the road. Sometimes these restrictions prevent HML-financed deals from getting off the ground in the first place.
HM Loans are basically a form of asset-based financing in which the borrower receives capital secured by real property. HMLs require monthly payments that often includes a balloon payment at the end of the term. How much a HML lends is primarily a function of the value of the property that the HML is financing. The amount a HML will finance is determined by the ratio of the loan amount divided by the value of property. This is known as the loan to value (LTV). Some HLMers will lend based on the after-repair value (ARV) which is the estimated value of the property after the borrower has improved the property.
However, suppose you only need the money for say, 1-3months? And/or you need less than six figures?
Until the last few years, that type of capital was not readily available. But now it is. It is called short term first position funding. For example, suppose you are a REIer who needs:
If the above describes a current scenario you have in front of you, now there is unique funding choice that has come to the fore, in the past couple of years, that answers this very specific need. To be clear, short term first position funding is expensive capital that is geared towards credit-challenged investors, or those who need funds for a fast flip with a profitable exit strategy already in place. Also, the LTV must be 40% or less.
True, the need for this type of unique funding does not arise every day. However, for a REIer who needs a modest amount of money, for a limited period of time, it can be a struggle to access the money when they need it. For example, suppose a REIer needs say, $45,000 for 60 days. Virtually no HMLers will touch such a deal. And because the funding requestor may have bad credit or is doing a flip, conventional funders are usually not eager to help either. Yes, there are some private lenders who can assist, but they are often hard to find.
In closing, HMLers are best utilized by seasoned professional REIers who need 1-2 year financing, in higher amounts (six figures and above), and who can bring a good chunk of capital to the table for carrying costs during the term of the HML. Obviously not everyone who would like to use a HML will qualify. They are not for everyone. And when HMLers are not able to meet the REIers needs, there is now an alternative: short term first position funding.
What We Do: Quickly provide first position gap funding, in smaller amounts, to investors who own a property free/clear (or wish to acquire a property with a low purchase cost), but cannot or will not use hard money lenders or conventional funding sources.
Contact info: Tod Snodgrass, firstname.lastname@example.org, 310-408-7015
I thoroughly enjoyed the “Making Room” Exhibit at the National Building Museum. As a Realtor, it was great to see how the industry has responded to the new reality. I am sure that most people do not know that 28% of the populations is single and living alone as compared to 25% in families.
We need to create more housing solutions that accommodate the new normal in housing – higher density – multifamily – intergenerational, etc.
If you have a couple of hours, you should check it out – especially if you are in the industry.
The pictures in this post are from the exhibit. It represents a 1000 sq ft apartment or house that accomodates grandma, daughter, grandson. Amazing transformational furniture and design ideas!
EVENT: D.C. Chocolate Festival
TIME: Sat. April 28, 2018 from 10 am to 7 pm
PLACE: Marriott Wardman Park – 2660 Woodley Road, NW
Visit https://www.dcchocolatefestival.com/ for more information.
by Tod Snodgrass
“Measure twice, cut once”
Even if you have no construction experience or knowledge you can get GC-level work done affordably, and with high quality. In the process, you can save thousands or even tens of thousands of dollars by learning to do what a general contractor does, which is to: plan/schedule, communicate well, shop aggressively for both supplies and labor, execute. Of course, you must be willing to research and learn that which you do not know. And if you DO have practical experience with any aspects of construction, that’s going to put you ahead of the game even more.
Here is How you can DIY-GC Your Next Rehab Job
A. Plan…a lot. Planning includes drawing up what the rehab/addition is going to look like when completed; this allows you to know weeks in advance what you need to buy for the job in terms of supplies, appliances, fixtures, etc. That way you can take a little time to shop for the best prices you can get on all the essentials you will need.
B. Sharpen your communication skills. Proper communicating can play a very big part in being your own GC. From making phone calls, to writing emails, and finally talking to people in person about the specific labor you need done, supplies, etc. you will need to buy. There are LOTS of good people out there who really want to help you, as long as you are willing to talk to them.
C. Shop aggressively for everything. Almost without exception, every price you see is negotiable. Of course, you have to know how to ask for the best deal. For example, if you were buying from a supplier, inform them you only budgeted a certain amount of money for their product. Will they do it for that amount? Some will say yes, others no. Never hurts to ask.
Money saving tip: Most home supply and big box stores (Home Depot, Lowes, etc.) have clearance sections somewhere in the store…probably in the back. Employees are usually instructed to move the clearance stuff out quickly by accepting any reasonable offer…read deeply discounted.
D. Consider buying supplies separate from the labor. Sometimes it is cheaper to get a vendor (say the electrician you hire) to provide all supplies needed for the job + his labor = total “turn key” price. Alternately, think about “debundling” supplies from labor: request labor only costs + get a list from the electrician of all the supplies he will need for the job. Shop his list yourself to see what you can come up with. It MAY be less expensive to buy the supplies yourself vs. the electrician providing them for this reason: The electrician may be adding a markup to his cost of goods—sometimes a big one—thereby inflating the total bid price to you. In other words, buy your supplies separate from your labor only if it makes economic sense to do so for plumbing, roof, electrical, landscaping, etc.
In addition to shopping for supplies from local brick and mortar stores, also include in your mix the internet and all the 1000s of sellers there. Because many of them are virtual companies, they really have no overhead; some just act effectively as brokers who drop ship the product to you from a central warehouse. Their lower cost of doing business can have a beneficial impact on your bottom line as well. Just have them deliver the name brand goods directly to the job site via common carrier.
E. Hire the right people. One of the best ways to secure the highest quality subs is make friends with people who know the right workers. For example, do you have a good friend who makes their living in the building trades? Have any relatives who know people in the business? Personal referrals can be golden when it comes to finding the best subs. And the good news is that good subs in one trade (plumbing), usually know good subs in other trades you will need, such an electrician or landscaper or roofer or carpenter.
Plan B is to drive different neighborhoods and find rehab or new construction job sites. Make friends with the workers there and ask for referrals. Plan C. is get on the phone and make lots of calls and talk to as many tradesmen as you can. Write down in advance exactly what you looking for; carefully check their references and hire the best people you can.
F. Execute. Once you have all the pieces of the puzzle in place (property purchased, financing lined up, planning/scheduling finished, supplies secured, labor lined up), it is time to put the pedal to the metal. Don’t fall into the “analysis paralysis” trap, where you study the deal to death and never actually get going on the job. Once you have all the ducks lined up in a row, it is time to hit the “GO!” button.
What We Do: Quickly provide short-term, first position funding, in smaller amounts, to investors who own a property free/clear but cannot or will not use hard money lenders or conventional funding sources. See more info below.
Contact info: Tod Snodgrass, email@example.com, 310-408-7015
As always, my buddy Reginald has a great idea. Why not run for office? NOOOOO. Not me, but you.
==== ENTER REGINALD ====
Now that the Year 2018 has entered its third month, I want to follow up on the previous email, by citing another resource that you (or someone you know) can use, to exercise your political power in 2018:
Run For Office
You can use the above mentioned resource in two ways:
1) Search by your street address, to find all of the offices that you can run for. In addition, free online training is provided on how you can run for elected office.
2) Volunteer to collect data towards compiling a searchable database of every elected public office position in the United States.
Enjoy & spread the word!
From: Reginald Ready
Sent: Monday, February 12, 2018 7:35 PM
To: Reginald Ready
Subject: Re: Flexing our political muscle in 2018
I want to follow up on the previous email, by citing two additional resources that you can use (or pass along to someone else), to strategically exercise your political power in the new year that’s now in its second month:
Description: For states with voter ID laws in place (or currently under legal challenge), this website offer free voter ID resources & services for voters who need to obtain ID, or who need information about ID types that are needed to vote.
Black Women Running for Office in the U.S.
Description: This website include a searchable list of 414 black women running for office in 2018 all across the US. Check out the site, find your state (or locality), and do your own independent research on the candidates’ positions.
To get your free “Redefining Prosperity” CD, e-mail me. Type “free CD” in the subject line, and mention your preferred method of receipt: by mail or in person.
From: Reginald Ready
Sent: Tuesday, January 2, 2018 2:09 AM
Subject: Flexing our political muscle in 2018
Happy New Year! If you paid attention to news reports about last year’s statewide election results in Virginia, and particularly the results from Alabama state’s special election for United States Senate; you probably understand (or came to understand) the significance of the strategic use and deployment of African American political power (and financial capital) that produced those election results.
Year 2018 is a critically important election year in the US: 36 state governor races, 435 U.S. House races, and 33 U.S. Senate races; along with numerous “less visible” but equally important races for down ballot state and local government elected positions. That being said, there’s a tremendous opportunity to strategically use our political muscle (and/or capital) to produce electoral outcomes on a national scale, similar to last year’s results seen in VA and AL! Take a look at the following political action committees (PACs) that have contributed in varying degrees, towards generating last year’s statewide election outcomes in VA and AL:
The Collective PAC (Purpose: Increase black voter turnout, build black political clout at the Federal/state/local levels)
New Nation Rising PAC (Purpose: To fight voter suppression, mass incarceration, urban gun violence)
Higher Heights PAC (Purpose: To invest in/cultivate black women’s political power & leadership potential)
Black PAC (Purpose: Long-term black voter engagement, identifies & holds accountable those candidates/elected officials that tackle issues facing the black community)
The above listed PACs will work to ensure that the results from last year’s elections in VA/AL, are accomplished across the board for the numerous state governor and U.S. Congressional/Senate elections, that will take place this year. In closing, consider the below news articles (and one media interview) that sheds some light on the value of these PACs:
Justin Fairfax discusses his historic win in Virginia
How Grassroots Organizers Got Black Voters To The Polls In Alabama
Black Women “saved America” from Roy Moore – now vote them into office
You have a higher calling! Fear, doubt, and procrastination are common deterrents to keep you from doing what you were brought here to do. In this motivational charge, Shawn Dove shares 7 things to help you dig deep within yourself to pull out the person you are meant to be. Named to Ebony Magazine’s Power 100, Charles H. Revson Fellow at Columbia University, and Prime Movers Fellow, Shawn Dove is CEO of the Campaign for Black Male Achievement (CBMA) – an organization dedicated to improving the life outcomes of America’s Black men and boys. What were YOU brought here to do? Stop stallin’.