All Forum Posts by: Ben E.

I use a new Samsung Smart Tv .. it has Apple AirPlay and Chromecast built in. I only put a netflix subscription on it. Everyone has various subscriptions on their mobile devices and can stream whatever they want to the TV. The tv also has Samsung TV Plus which is free and has a ton of channels.

When making offers on listed properties, contact the seller's agent directly and ask them to write up and submit the offer.  This agent is more likely to help push the sale through as they will receive the full commission (no split with another agent).  However, if the offer is really low and properties are moving.. it is still not likely to be accepted.

If you go this route, just be sure you understand the details of the closing process and are comfortable representing yourself.  Be sure you have a relationship with a great inspector and get the correct inspection dates and terms in the sales agreement.  Once you've purchased a few properties, this is not difficult.  

It's also a good way to meet local agents.  They will keep you in mind when future properties are coming to market.  I picked up my last 2 properties this way.. before they were listed.

If you still can't get offers accepted, look into sheriff sales.  I haven't done this yet, but I did stop by the court house and the sheriff was happy to tell me all about the process. You will have to find out how this works in your area.

Thanks David!  If I go this route, I'll have my plumber handle it.

I'm curious to hear from anyone who has experience winterizing a foreclosed property in a northern climate. I live in Northern Michigan.. we get a lot of snow up here. If a property is properly winterized is there much risk of further damage due to freezing?

I am purchasing a foreclosed duplex that needs a major renovation... around $50-$60k of work. I'm purchasing the property with cash and if I wait to renovate until spring, I'm confident that I can pay cash for the whole renovation. Then I would refinance after it is in service. If I renovate during winter, I will likely need to borrow or sell some equities (pay capital gains). I have great credit, but I would like to avoid shortterm debt costs.

I realize that I would loose income by delaying the renovation, but it is often hard to find good tenants in winter anyway.

I have the insurance lined up.  The price and policy are decent too... a little under $600.  I was very direct about the condition of the house.  I sent high-res photos of the roof and they are ok with it. There doesn't appear to be immediate problems with it... just that it will be a tear-off project.  I got a bid on it at $10,500. The only thing I need to fix immediately is upgrading the electric service.  I'm going to rewire the 2nd floor as well, but the insurance was actually ok with it.  I'm budgeting $25k rehab into the project over the next 5 years.  It's in a great location with high demand and is well positioned as a vacation rental.  

The seller agreed to a $4k credit.  I thought that was reasonable and likely to work out in the current market.

Hi @Alan Grobmeier and @Kathy Henley,

Thanks for the tips!  I will let you know how it goes.

Hi Tim,

Thanks for the feedback...  I'm a new and still learning what to look for.  The electrical service and old boiler were obvious.  The roof is pretty much covered with snow right now and I didn't have access to the attic until the inspection.   But I should have looked at it with binoculars like the inspector did.. same goes for the chimney.

The knob-and-tube is the one thing I'm considering asking about credit for.  The first floor wiring has been re-done and I couldn't see the knob-and-tube from the basement.  I actually had an electrician in there to ask about the service upgrade before the inspection was done.  He said he didn't think the 2nd floor would need to be rewired, but said the inspector would get a better look when there is access to the attic.  

I may need to have that rewiring done to get the property insured.  It is super common in the area, but it looks like it is getting harder to insure now.

Thanks Christopher!

Yes, credit in the price is what I will ask for.  I'm curious about other buyers strategies and experience in this situation.  

Since it is under contract, I guess they could say no.. but I can still accept as is.

My main question relates to asking seller to complete or pay for repairs.

I have a house under contract for $120k. It's a great location, most of the house is pretty nice (for the neighbor hood and price range). However, the inspection turned up 4 major issues.

1) electrical needs service upgrade + there is knob-and-tube wiring to the 2nd floor.

2) Chimney needs a flue + rebuild from the roof up.

3) Inspector estimated 2-3 year life on roof. It has cedar shingles underneath 3 layers of asphalt, so it will need a tear off replacement.

4) boiler is very old (1970s), but seems to work well

I suspect the first 3 items easily add up to $15k - 20k in near-term repairs. I already have to look around at other insurance companies as State Farm won't insure anything with active knob-and-tube.

I'm planning to use the property as a vacation rental as it has pretty good potential. That will also involve $3-5k in setup costs.

I'm paying cash and have funds to make the additional investment, but I think these big items were put off and it is reasonable to ask seller to pay part of repair costs. I can see that the seller paid $60k for the property in 2000. So they will still be doing well. Also, she is already living out of the area, but it is a tight market with low inventory of quality houses in this neighborhood.

I don't have experience with this type of negotiation, any advice is appreciated.

Thanks,

Ben