Short monologue advising real-estate practitioners to be careful with permits and how they describe renovation projects to lenders and city officials. The speaker recounts doing unpermitted wall changes on a co-living property (a sub-2 deal) and warns that lenders and cities may require permits and may deny conversions due to occupancy limits when converting units into more bedrooms.
See the problem is the lender wants everything done by the book. They're going to probably want permits to be pulled. And I've put up walls in a co living property and I tore down walls. I didn't get a permit but it was a sub two deal. It wasn't. I didn't like go call a bank and you know, tell them I was doing it. But if you were going to do that in a fix and flip you probably you might have to get permits at that point. One thing I do want to mention on the permit thing, if you were going to go that route and get permits like from the city, one thing I don't know if this might problem may not be but I just wanted to say it. They may challenge you on adding a wall and if your plan consists of turning it into a. You just need to be very careful in how you describe your project because if you were saying hey I'm doing a co living property rent by the room, I'm turning this into, you know, a four bedroom, into a six bedroom or seven bedroom, the city's going to come back and be like oh you can't do that because there's an occupancy limit and only, you know, four unrelated individuals can live in the proper. So you just got to be mindful of what you would tell the city when you do that. Just FYI.
