All Forum Posts by: Bill J Fay

I would call a RE Attorney in your area for them to answer any questions.

Usually, in a foreclosure auction, you do not get to access the interior of the property. In addition, all fees are packaged into the opening bid amount. Is this property that is "seized by the government" listed for sale as an REO? In an auction, you do not get a "clear title" and it is your responsibility to determine that. It sounds like you are describing a property listed as an REO.

An underrated spot to find RE Investors is at the local foreclosure auctions. You will find many local investors looking to find deals. Especially if they are there to bid, you know they are committed. They should have other contacts in the space as well. 

They don't build tubs like they used to. I suggest keeping and glazing if it's in semi decent condition and you are trying to keep the existing surround. 

It sounds like either partnering with someone, or using a hard money lender would be two great options to get this project done. Take a look at the Find a Hard Money Lender - Best Hard Money Lenders Near Me (biggerpockets.com). 

The BRRRR strategy could be a great tool for you. With this investment strategy, you are looking at a lot of properties that need to be renovated. At the end of your reno, if the sale makes sense, you can cash out relatively quickly. If it makes more sense to keep it in your portfolio, then you can refinance out and pull your money out of the deal to use to buy your next one.

BRRRR Investing Calculator | BiggerPockets

My stager charges based off the rooms, not sq footage. For a typical 2,000 sq ft home, I will pay $1000-1500, with a monthly fee of $400-750. So based off your quote, I am not far off. I usually select the living, kitchen, dining, primary bedroom, and basement living room. It changes per property, but I have found it to be a great investment when warranted. 

At the end of the day, ARV is determined by what the buyer is willing to pay. Utilizing a RE Agent that will eventually be listing the property is a great way to learn the art of coming up with an ARV. Make sure your Agent works with investors, or even invests themselves. There are so many factors that go into coming up with a value. Draw a half mile radius and gear down the bed/bath count, square footage, garage size. From there, assess how updated the finishes are. You can always start with Zillow, Realtor, etc., but do not take them face value.

Every market is different, so can't speak to the Pittsburgh market. Get 3 quotes from reputable contractors. If you don't have any in your network, ask if your RE Agents have any connections. Make sure to get references before you hire, especially for bids on the lower end.

There are contractors that hate flippers and there are contractors that love them. Be open with what the intent of the project is. The contractors that love investors that flip love that fact that they aren't dealing with a homeowner. It's a business focused relationship rather than an emotional one that comes with working on a personal home. The contractors that hate flippers are the ones that undercut them at every move. Waste their time and go cheap on certain aspects that need attention. You'll eventually find many contractors that will love to work with you if you treat them fairly and keep work coming in.

To be clear you would be paying this company the renovation cost + 9-10% to PM the project? Does the company have a GC with their own PM's? Make sure to ask for recent projects they have completed as well as references. Also, make sure you are not binded by a contract to sell the home. Sounds like they could be a great resource if they are legit.