All Forum Posts by: Blair Poelman

@William Montgomery  I'm not trying to be mean or poopoo your idea - but from your comments it sounds like you know enough to get involved in a deal, however you may know just enough to get yourself in a load of trouble if you get into a deal with your current level of knowledge.

One of the many "#1 rules of Real Estate" is DON'T GET INVOLVED IN A DEAL YOU DON'T UNDERSTAND.  You should have a very full and complete understanding of transactions before you try getting involved.  You may want to do a bit more research and learning before you dive in.  

As far as I know, the Division doesn't really have a public stance on the issue as of yet - but they will.  I expect the division will come up with some rules, and when they do they will pic a target to make an example of.  So if you don't know how to do a transaction 100% compliant, there is a very good chance you'll make a mistake that could put you into the pool of targets.  OR, they could just completely ignore whatever happens and all the wholesalers out there will be just fine.  No way to tell until they do whatever they do. 

Wholesaling is not easy, simple, or basic.  In concept it sounds very simple, but it's effing hard.  I assure you, it is way harder to consistently make money wholesaling than you are thinking.  It is common for new or inexperienced investors to go down the wholesaling path - until they realize it's not nearly as easy or lucrative as you were led to believe.  Also, as a wholesaler you've still got your finger in the pie on whatever transactions you do - so if something goes wrong, even if you weren't the buyer, you've got liability.  

This market hits the brakes and slows down pretty hard when school starts in August, then once the weather gets really cold and we get closer to the holidays we hit the brakes yet again - pretty normal for this time of year for everything to be slow.  Lots of folks are trying to sell their average property at or above premium prices in the slowest quarter of the year - makes sense that sellers are having to do some price reductions. 

Additionally, it seems that a substantial percentage of the buyers that I've worked with recently are just not willing to pay what sellers are asking.  Sellers who got into their home, for say 250k in 2013 and have done literally zero capital improvements are now asking as much as 30% more than what they paid only 5 years ago?  how does this make sense?  It doesn't.  Buyers are not stupid, and even though the market has supported that behavior in the past (sometimes the very recent past), many buyers are just not willing to pay a premium price for the average property.  Values have, and will swing pretty far, but the current trend is going a bit beyond what I expected we would see in this decade. 

I believe there is a correction coming - even with how "strong" the economy is, I don't see how these values can last.  Wages just aren't there.

There will still be movement and people will still be buying and selling in the new year, but I will be really surprised if values rise in 2019 at the same rate they did in 16, 17, and 18.  BUT - who knows, humans do some stupid stuff, maybe we'll continue on this same path.

Personally I'm bracing for a devastating financial crash across the entire economy - and this time I think it will hit our hometown here in the happy valleys just like it did in other markets in the 08 s**tshow.  I don't think I could fully articulate the reasons for my outlook in under 100,000 words, but what I've seen in the last 20 years paints a bleak picture. I trust my gut, and it tells me we're in for some s**t in the coming years.

I can write an offer in 5 minutes - UT contracts are relatively short, and our MLS is kind of functional and efficient when it comes to populating forms. However the issue is not the number of minutes it takes to fill out the paperwork. Many experienced agents are reluctant to write lowball offers because lowballs are usually a waste of time. Occasionally you'll get lucky and a seller will bite, but right now lowballs are largely being ignored - at least that is the case where I play.

If you want an agent to write you a bunch of lowballs you need to find somebody who:

A)  knows what they are doing and is a glutton for punishment, but willing to do the job
or
B)  has no freaking clue what they're doing and no clue how futile their efforts are, and is willing to give you their time and effort in desperate hopes that something will take
or
C)  has an assistant who is paid hourly to sit there and fill out forms, set up docusigns, and send offers. 

I have a SFR. Hit me up if interested

If you're asking this question you likely don't understand the local laws - so you really should consult with a local attorney who can advise you on your strategy.  One of the many "#1 rules" of this game is Don't get involved in a deal you don't understand.  Another #1 rule is Don't break the #1 rules.

There are endless ways to "wholesale" a property, so a simple "YES" or "NO" is not a sufficient answer to your question.   Depending on how you do your specific deal, it might be legal - or it could be totally and blatantly illegal and you could be screwing yourself good and hard.

My number one rule of life is don't do business with family.  Your #1 rule might be different, but I recommend you sleep on your idea for a couple days before you partner up with your cousin.

A piece of furniture is personal property and usually not a fixture (unless it's a built-in or something permanently attached), so the value of furniture typically is not included in the value of the Real Property.  Furnishings may have monetary value (which would/should be listed on a separate bill of sale when you close) , and may increase (or decrease) the desirability or salability of a property.  Keep in mind when you provide furnishings you get to deal with the maintenance of said furnishings - and you get to replace the furnishing when it is not performing as intended.  

I think furnishings are a liability to a landlord and I do my best to never provide anything other than a fridge and range - not even those if I can avoid it.

I'm sorry, that situation blows.  Non disclosure is a very common cause of real estate lawsuits, and honesty isn't exactly the highest priority for some people.

Llitigation freaking sucks, and so does arbitration - but not as bad as litigation.

@Brie Schmidt hit the nail on the head - you are going to have to prove that the seller knew about the problem and concealed it.  That can be tough and may end up costing you more time and money than just biting the bullet.

Hopefully you're going into it with the right mindset, which (I'm sorry to say) is there's a chance you'll get nothing out of the seller without a whole lot of work, even if you "win".  You might be able to get a judgement against them, but collecting on that judgement is a completely different story.  And if the seller is broke, well then, you can't get blood out of a turnip.

Every market is completely unique and the prices for materials, labor, permits, etc... will vary somewhat from place to place, so you're probably not going to get a really precise answer on this one, but I'll try to point you in the right direction.

The number 1 rule is spend less than what you can sell for, while still having a marketable and desirable property that will generate a profit.  and other than "buy low, sell high",  and "disclose the living sh*t out of everything you do", I really don't know of many other rules. 

You can do a square footage estimate - but that is only an estimate, and probably not a very accurate one until you've got a bunch of experience under your belt.

You can line item all the "stuff" - this takes a very long time when you're getting started, and it's probably not very accurate either, especially when you are pricing at the HD, but a lot materials are going to come from a contractors supply (if using licensed contractors), and labor rates vary greatly.

You can try to get a GC to come out and give you an idea of cost - but be aware that GC's don't like this, especially when they show up and find "another cheapskate investor trying to slap lipstick on a pig".  I know it's not cool, but that's kind of a reality.  Oh, and by the way, if you do get somebody to bid this way for you, this probably isn't super accurate either.

Really you should be shooting for a ballpark range.  But keep in mind that your ballpark isn't accurate either - and even when you have a full bid from committed contractors, you're going to be a little bit off on your final expenses.  Everybody has their own way of doing it, and their own level of what they are comfortable with - I am comfortable with ballpark of 10% + or -.  That usually gives me enough room to win some, lose some, and still net out around equal.

Also, as you get involved in this silly little game you'll start to get a feel for what it costs to do certain tasks and you will naturally be able to get a feel for costs.  It takes time - like, a lot of time, but eventually you'll start to get it.

A couple thoughts:

1.  No harm in asking the previous owner if they will help out.  If you don't ask, the answer is always "no" - but I wouldn't expect them to do anything or really even respond.  In the off chance they do, great.

2.  Buyer beware.  Sorry, I know it is harsh, but that is the reality of real estate, and it happens more than most realize.  Non disclosure is a common reason for RE-related litigation - even when there truly was no knowledge of the problem in question.

3.  "it works" is a pretty general term.  It sounds silly, and people think I'm being a bunghole when I pry in, but when I'm told something works, I usually follow it up with "works how?  like works poorly? perfectly? sometimes? all the time?".

4.  If it were me, I would just bite the bullet and fix it.  Yes - I know anybody can sue anybody for anything, but as crappy as the situation is(no pun intended) I would be pretty embarrassed to be involved in this kind of lawsuit - directly or indirectly.  Seems to me it would be considered a caveat emptor issue, but I'm no attorney, and I really despise folks who are lawsuit-inclined.

Sorry man, houses kinda sucks some time.