All Forum Posts by: Blair Poelman

If you have the ability to put them on separate meters, you should.  

It is customary (at least in the 50+ cities I've done multi-fam deals in) for the owner to pay for utilities on a multi family property that does not have separate meters.  It might cost you a fairly hefty amount to put the meters in, but you will likely save yourself a bunch of money.  That is also a fairly substantial capital investment that should give you an increase in value.

The best deal I did this year so far was a very similar condition (old guy moving into assisted living center).  

If the numbers work and you can get the deal done, it's probably not a bad deal.

One thing to remember when dealing with time capsules - an enormous amount of building codes have been adopted since the 60's, so you would do well to get a good GC that works on old stuff to come and do a walkthrough before you get too far.  

Hard money can mean many things - but I believe the commonality amongst all HML's is a higher interest rate, and an interest only loan.

If your numbers work with those factors, then it works.  if not, it doesn't.

I recommend prior to getting into a buy & hold deal with hard money, you look for another option, or at least start working on a refi into something long term with an AM schedule. 

that's kinda lame.  As far as I know, Topgolf has been a plus in SLC.  Any city should be happy to have something like that.  Golfers spend money, spending money means tax revenue.

I've had success, and have also been burned on properties that reach this so-called 2% thing - which really is not a rule (the 1% rule isn't a "rule"), it's just one of many metrics used to evaluate an opportunity and the performance of an investment.  

Additionally, anything I've ever had that hits even close to 2% has been pretty hood-ey.  Don't get me wrong, I've done very well in C and D areas, but my 2%-ers have all been closer to F and F-.

one thing you mentioned that sticks out to me is that you're using google maps to check the area - which I think is a good thing to use to get an idea, but I believe relying on what you see on google maps is a devastating mistake.  Google maps will never give you the real deal on any area.  I don't buy anything, anywhere until I've been there and I'm familiar with the streets.

If your wholesaler is saying it has to be done in 3 days... they clearly don't have a full understanding of how transactions work.  Real Estate transactions take time.  

Yes, you can "close" a deal in 3 days with a quit-claim deed and outside of a title co/attorney and no title policies, but if you want to do a clean above-board deal, it is going to take some time. The quickest I have closed a cash deal while using a title company is 6 calendar days - but that was only because I was doing 20-30 deals / month with this title co and I had a dedicated title officer working on my account. Any other title co will likely take more time - even then, most searchers will take 2 or 3 days just to prepare the abstracts or the PR's necessary to even get a title commitment. The quickest I have closed an FHA deal is around 25 days (give or take a few days).

Most likely what is happening is the wholesaler only has a couple days left until they either assign the contract or they lose the deal.  

I always err on the side of caution when somebody is pressing a tight schedule.  10 days is usually very reasonable, but 3 days is just freak'n dumb.  

If it were me, I would wait a for the 3 days to expire - if the deal really is that great, the wholesaler will stick with it.  If the deal is garbage, the deal will fall apart and you may have just saved yourself some trouble.  OR, OR, OR, the place will be back online and you can go get it yourself.

There are several provisions that must be incorporated into a contract in order to make it valid and enforceable - and even then it will still be open to argument and interpretation based on a myriad of other factors.  You need explain the situation to an attorney and have them write your contract for you. 

Contracts and operating agreements are a necessary instrument to use, but ultimately it comes down to personal trust between you and your partners and team members.  Anybody can violate the terms of a contract and simply walk away - it's up to the other party to enforce that contract, or walk away also. 

Ultimately if there are trust issues with a potential partner, you should avoid getting into a partnership with that person / people.  If a deal goes south and a partner decides to give you the ole' 1-finger salute, it will be up to you to enforce whatever agreement was made, which usually involves spending money on lawyers and letters.

This is a relationship business.  If you don't have healthy trustful relationships with everybody you are working with you run the risk of dealing with unnecessary challenges that usually have nothing to do with Real Estate.

Without knowing more about the property there's not a lot of specifics that we can really get in to.

I will agree with what has been said about closing costs - seems a little bit  low.  You can reasonably expect around 2% for loan costs, plus title / attorney cost of another couple hundred bucks. 

I will also put this out there - purchase price, rehab, and ARV numbers look out of whack. You're in 132k but value of 125k. Might want to look at that ARV again and make sure you're in a good position on value. A 15k budget on a 115k house seems pretty low to me. I recommend you do a bit more homework before you pull the trigger.

SFR in Pasadena TX. Recently foreclosed and ready for a quick clean up.

ARV 106-110k.

Contact me with any interest.  

Blair Poelman.  385-208-2666.  [email protected]