All Forum Posts by: Jonathan C.

Just wanted some opinions on what to do. Have 2 properties where rehab was just completed and are ready to go on market. Would you put them on MLS now (12/20/11) or wait until Jan 1?

When a property first hits MLS is always the best time to get it sold, so I'm not sure if it's better to wait until we aren't right in the middle of the Holidays to put the properties on the market or just do it now since they're ready.

Any opinions much appreciated. Jon

Yeah, sign of motivation and a list that is not likely to be marketed to very heavily since it isn't super easy to get.

A lot of the liens are like 5k, 10k, 20k range... so not deal killers I wouldn't think as long as there is a good bit of equity in the propery.

Hey-- I did a search on this and got some info on property tax liens and irs liens generally, but what I'm interested in is if anyone has targeted these homeowners specifically to try to buy their houses.

Should be pretty motivated, but obviously you'll have to deal with the IRS or Property Tax Lien-- either try to negotiate down if it's an IRS or will prob just have to pay it off if property tax.

Curious if people think it's worth it and if people have had success buying houses from people in this situation.

Thanks

Wondering if rehabbers set up any sort of incentive/bonus for contractors for completing work on a certain time schedule. Or, alternatively, if people set up some sort of penalty if the contractors don't finish the work on times.

Pay for performance seems to work pretty well in the business world, and I would imagine a version of it could also work with contractors. Looking for ideas on how other people have set something like this up.

I'm thinking maybe an extra $1k (on a $40k budget) if they get the work done by a certain date, but I'm not sure that is enough/too much...

thanks for any ideas. Jon

I did a search and wasn't able to find much on this.

Wanted to see if anyone has used/tried to use/thought of using a commercial guidance line of credit to fund their flipping.

I'm talking to a community bank here about establishing one-- it isn't perfect as it will go to 70% of the purchase price or 'as-is' value whichever is LESS, so for most properties that would probably fund 40-50% of the overall project cost.

The good news is the interest rate would be fairly low and it seems as though it's something that can be used on short notice.

So was interested to get any experiences with this.

Thanks

Hey guys--

what is your rule of thumb for general contractors with how much of the total job cost you pay them at the end (in terms of a % of overall job cost), and when do you pay it? i.e. after final punch list, after you've had all inspections from permits you've pulled, after the property is under contract and buyers home inspector inspects it (I assume that's too long to wait), or some other way

I am having contractors looking for payment before I am comfortable paying, so I want to know what recommended practice in this area is.

thanks for any help

Thanks for the replies.

J Scott-- any tips for finding issues like this before the home inspection? The mold was behind a wall and not something I would have seen with the naked eye. It would definitely be worth spending some money or time to try to catch issues like this in the future-- I just don't know how I'd do that... how do you do it?

Thanks

I just went through this with 1 of the houses I rehabbed... whether to pay 1.5-2K to get it professionally staged or just buy furniture.

I was able to buy couch, coffee table, 2 end tables and lamps, console table, dining room table and 4 chairs, wall hangings, and a whole bunch of bowls and random stuff at target for about $2K. I bought it online and they shipped it for free. If you live close to the house you're rehabbing you can even get it shipped right to the house and just track it online and go move it inside once it comes. I just got it shipped to my house then drove it over.

Rehabbed a house, under contract with a buyer to sell it post-rehab, home inspection just came in and found some evidence of some mold in the house, which I suspect was caused by humidity or maybe was there when I bought it and we missed it somehow. I have no reason to think the waterproofing is not doing the job.

Problem is, although the house was waterproofed correctly- trench dug around whole base of house, french drain, waterproofing stuff on walls, sump pump- it was done by the GC, not by a 'waterproofing company' that provides a guarantee on the work. The GC is not willing to provide any sort of guarantee. I'm worried the buyer is going to get spooked and not go forward... any ideas on what I can do at this point?

Thanks

Thanks guys-- kind of what I figured, unfortunately.

So sounds like working with property preservation companies is pretty much worthless. Even if they do work on a property in decent condition, you have no idea what it will be listed for and so would have no idea if it would be a good deal or not.