All Forum Posts by: Alex Natanson

I'am open to suggestions considering you fully read my topic - in 2018 I (de jure) didn't have income.

Hi, I am running a flipping business in NY and found a financial gap of 80K that needs to be covered for 4 months while I'am selling one flip and building a new house from the scratch at the same time. Conventional mortgage is not an option: first i need money for 4 months, second I just sold my live-in flip and made money that are non-taxable (but the banks don't care - there is no income if it's not reported). I do have 70K limit on all my c/c, but I wish more contractors taking c/c as a payment. What other feasible options do I have? It's a first time I'am taking a loan.

 By the time I decided it's gonna be my residence. That is why the house has everything new. 

 Have not you tried to negotiate at least 50% of the job to be covered by the buyer? He gets a new septic - it should be priced in sale price. We are in the hot market (at least we were last fall) and it shouldn't be that hard to find a new buyer for the house with a new septic. I wouldn't give up on 13K that easily.

No i don't do contractor jobs, and with the business like we run you have to know how to fix things yourself. It gives advantage - instead of paying 13K for contracting you just buy excavator time for a day (600 dollars), have one-two low-paid helpers (150-300 bucks) and buy a standard set of materials (600-900). I did that 3 times in last 2 years.  Usually i do a basement the last thing in the house watching the leaks during the renovation. It helps to realize what is wrong. Also i mentioned it works 9 out of 10 times. I'am not a tele doctor to give you a diagnosis over your description.

The same with the 200 amp service upgrade - it's a standard job that i finish myself in a day, saving at least 1.2K in job pay. 

Do you credited the buyer for 13K or you were forced to hire a contractor to fix the septic and then sold the flip?

If there is water in the basement always slope the water away from foundation walls and build french drainage around, let the downspouts in and dig a catch basin in the lowest point of the parcel (all those measures will cost 2K at most). This is the most common reason for the water in a basement in my area. I don't buy BS from foundation repairing companies about ground water inside cinderblocks ))) 90% it's surface water

I inspected myself a flip - missed a bowing foundation wall due to poor lightning (fixed for 2.4K). Missed absence of insulation - i checked one wall for insulation and it was insulated, but the rest of the house was not (apparently the wall i checked was remodeled for some reason). The gut job, insulation, new drywall, and new electric cost me 20K above the budget. Luckily i bought the house for 85K. Totally (it means the only things i didn't touch were septic, part of the frame, and foundation) remodeled it for 116K and 6 months. The ARV (very conservatively) is now 285K. What the heck i decided to sell my place and moved to the new house considering the school district is better

You can buy it cheaper on eBay. The only thing it needs electricity to work. Sometimes it's not possible while hooking up to utilities (service upgrade, inspection, lead time to hook up). While this period the generator was stolen from my flip.