All Forum Posts by: Andres Cardenas

Hello everyone, I have a two part question.

1. If you buy a house sight unseen from a wholesaler are you then getting a full inspection or do you just go in and start fixing what you or your contractor think it needs?

2. When you’re about to start a rehab generally speaking what’s the first thing you usually do? Is it best to take care of big ticket items first for example a roof or does it even matter where you start?

I know both question depend on a lot of different factors, so thank you in advance for taking the time to help out !

@Moises R Cosme thanks for the feedback! You’re definitely right about digging deeper. I asked what his plans were for the next 5 years and “I’m looking to not work anymore” we’re his exact words. I told him I’d give him a call this weekend, I’ll keep you updated

There’s this older gentlemen that refills the vending machines at my work, after a few conversations with him I found out he owns them and actually has a vending machine business and owns a couple sfr free and clear . We were talking about business and real estate going back and forward sharing ideas, and he mentions that he’s pretty much looking to completely retire but would still like some income.

Right away I’m thinking of all the possibilities, heloc on one of his houses, seller finance if he’s looking to get rid of one, combine hard Money with his money, etc. He’s probably in his 60s give or take so I’m thinking something like flips or brrrr would appeal more to him since I can pull/make the money back in about 6 months vs a long term play.

Any tips or advice? I feel like we can really benefit off each other considering he’s older wanting more time on his hands and I have the hustle and the time. How did you get your potential lender to say yes to you? Thanks in advance!

@Kevin J. Hubbuch I just deleted all my social media because they were causing too much distraction. I’ll pm you

@Tim Herman you’re right I would need to come in lower, the 35k I budgeted is on the higher side of what I think it would be, I can do a majority of the work myself. I think it would be around 25k. I would be getting an inspection so any roof or foundation issue would blow it out of the question. I appreciate the feedback

Assuming I would have gotten it under contract for $140k.  

 Hello BP! Drove by this house in the south mountain area today and saw a for sale by owner sign and  decided to shoot my shot(for the first time). It's a 2/1 single family 1,106 sq ft, condition from the outside doesn't seem to bad but was not able to see the inside because it is currently occupied, ran numbers and comps and came up with a offer of $140k and got denied. Before I even offered she mentioned they've received several offers,highest being $280k. I find that hard to believe since nearby comps are selling for $220-$230k for 3/2s fixed up ( my plan was to convert the carport in to a room so it can be a 3 bedroom house). Told the lady that seems way too high and I mentioned the comps nearby. I asked if I can see the inside so  I can give her a more accurate price but she wanted to end the conversation right there. The lady did mention it was in good condition but it would need paint and some updating Here are the numbers let me know if I'm missing anything and if you have advice related to this please let me know. 

If I would have tried to flip it ( would need a partner for the rehab cost and 15% of purchase price, splitting the profit 50/50 with me providing work and the deal) 

Arv: $220,000 ( as I mentioned there were a few comps that sold between$220k and $230k in the past 6months)

Repair costs:  estimated $30k ( I have no idea what the inside looks like but I assume it would be trashed)

Hard money: 85% ltv $119,000

                           - at 10%: $11,900

                           - 2points: $2,380

Holding cost: 4,500 (3 months)

15% of purchase price: 21,000

all in for $188,780

if it sold at $220,000 that's $31,220 profit, $15,610 each  with a 30% return for my partners money.

Or I would have wholesaled the property.

Am I looking at this correctly? What would you do differently, and any tips on speaking with sellers directly?

I will be following up with seller if its still for sale in a week. Thanks in advance!
 

@Joanne Eriaku Thank you! I’m in a high populated area, going further than a mile seemed to excessive

@Will Fraser Thank you I appreciate it!

I’m looking for comps on a 4 bed 1 bath house but I don’t see another 4 bedroom that’s sold recently. I checked one mile out and there’s nothing, nothing in the past 6 months either. In this case do I go further back in time and what’s the furthest I can go, or do I expand the search to 2 or 3 miles? Also let’s just say there’s no 4 bed house to compare to, would an appraiser compare it to a 3 bedroom similar in sq ft and amenities? Thanks in advance!