All Forum Posts by: Samuel DeMass

Thanks for the quick responses!

@Scott Hollister, @Account Closed

The gazebo is as mentioned in rough shape, but it's a simple wood structure.  No roof, no windows.  It's just horribly overgrown, Gazebo in a Jungle <---click here to view a video.

Thank you for your thoughts!

Cheers,

-Sam

@Wayne Brooks,

Thanks for your insight!

It's a little more involved than eyes and ears, basic coordination of contractors and quotes, but it's intended to be a good for the project manager.

FULL DISCLOSURE: for outside readers looking for baselines and information, the project manager is my brother-in-law, so the 50/50 split of profits (after paying back interest to my cash down payment) is probably not market standard.  However, in my view it's worth sharing the profits this way since my money is being paid.  My money is being paid, I'm being paid, and the project manager is being paid.

The one thing the project manager can directly impact in the overhead is the holding costs, which are not significant when viewed on a monthly schedule.

The real crux is if we are unable to sell the property in a timely manner for any reason and the holding costs start to creep up.  

I tend to agree that a time spent, or at least average time I expect to be spent is a good flat rate compensation in the case it does not sell.

Than you for your thoughts!

Cheers,

-Sam

Hey BP,

It seems like I've chaffed about 20 questions today alone, but here's the most recent.

I have a flip that I'm rehabbing and I keep scratching my head when I look at this PINK bathroom.  The whole theme is pink to include the toilet and the tub.

I'm considering leaving it and taking a hit on the selling price.  It's in fair shape, and I'm concerned that if I spend the money to rehab it, I may not get my money back out of it.

I've also considered painting over everything a white or neutral color and painting the tub.  Someone else also mentioned a cover they can put on tubs these days.  I haven't fully researched these options.

I want your opinions, please.  Thank you.

Cheers,

-Sam

Hi @Shannon Toye,

Answers;

1.) If you're right about your ARV, the location is already accounted for the street. If you need to re-assess the numbers.

2.)  I think you're looking for a bridge or construction loan from the bank to help cover the rehab costs.  I would use a local bank and talk to them about portfolio lending.

They can structure the deal such that you only get the money you need as the project goes forward.  It protects them and allows you to keep your holding costs down a little.

I've never done it, but I've arranged financing for it a couple times and had the deal fall through (knock on wood).

Beset of luck!

Cheers,

-Sam

Hey BP,

I found  Gazebo on a house I'm hoping to flip, but maybe rent.  It's in rough shape, but might be able to be fixed up.

Any thoughts or similar experience out there that could weigh in on whether to plow it or clean it up and keep it?

Thank you for your time!

Cheers,

-Sam

@Barclay Hallowell,

I think the only significant thing you have to be concerned with is the current lease.  If it changes hands the lease will have to be honored.

It's also worth mentioning that incumbent tenants tend to be less desirable than newly filtered and vetted tenants who pay market rent.  Long term tenants of an unwanted property tend to carry with them problems for the new owners to solve.

Best of luck!

Cheers,

-Sam 

@Keegan Thompson,

Find a deal with equity built into it.  Talk to some local banks about portfolio lending.  If you have equity in the deal (it's worth more than you're paying for it), you may not have to bring much or anything to the closing table.

You could also partner with someone who knows what they're doing (with a good track record.)

Best of luck.

Cheers,

-Sam

@Kaiser Akram,

I'd reach out to a realtor, title company, or property management for a good starting point.

Also, AK is Alaska.  Arkansas is AR.

Cheers,

-Sam

@Russell Naylor,

Thanks for the quick reply!

I was thinking the same thing.  Thanks for being a sounding board.

It's a two car garage, and I don't have measurements, but it should ballpark ~25'X30', maybe?

Thanks again!

Cheers,

-Sam

Hey BP,

This one is a little off the wall, but just curious if anyone else has dealt with this already.

Just when you thought you'd seen a few things, you walk into a garage that sunk 2-4"...it's bizarre!

The foundation of the house is solid, but it looks like the garage floor was attached to the outside of the foundation or poured at a different time, because it sank.  I think it was caused by some run-off issues with water.

The bottom line is I need to get it fixed.  Who does that type of work, and how is it done?

Do I need to get someone to jack-hammer it out and haul off the old floor?

Can they just pour a new layer on top of the old layer?

I appreciate your time and thoughts!

Cheers,

-Sam