All Forum Posts by: Charles Oglesby

I have a unit that is coming available at the end of the month. During our inspection a few months back we could smell smoke in the unit. I am assuming that despite our letter she went back to smoking in the unit.

My question is has anyone had experience getting a smoke smell out of a home and what methods did you use to do so? It wasn't a heavy smoke smell and she was only in the unit for one year but it was present.   Any help is appreciated. 

My company owns a few rentals throughout Detroit and even in war zone. The rental demand is through the roof. We can list a property and get tenants lined up around the corner.  We had 200 leads on one door in less than two weeks. 

The rent to value numbers are fantastic. The only downside is appreciation but if you are playing the game for cashflow it doesn't matter. 

I am bullish on detroit.  It is a prime market that is undervalued and overlooked.  

One issue I do have is that we bought a land bank home and the rehab on this property is getting out of hand.  Contractors in detroit are often out of touch with the reality of their market and will kill a deal.  Our biggest issue has been finding reasonable contractors. 

a deal that cashflows negatively $400 now could also turn against you as rents decrease now that we are in a rent bubble. a $400 loss could be an $800 loss soon and not only are you bleeding cash then but your valuation will also plummet. we are in a unique market that isn't sustainable long term.. 

Come talk wealth, real estate investing, stock market investing with young professionals in the LA area. Hosted by the Todd Capital Investment Club. Everyone is invited. 

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Thanks for the wisdom David.  I'm not sure if you missed the part where I said I am investing with a group, but I am investing with a group.  I have more than a few boots on the ground via partners and family which is why I selected the Atlanta area.  I will eventually be relocating to Atlanta and given my income, education and experience I think a 50k rental property with minor cosmetic rehab is more than manageable.  I appreciate your concern though. Thanks a lot for the post. 

Good point on it being a small rehab.  This is going to be placed with section 8 tenants as soon as its done so we definitely aren't going high end. I can't imagine the deal making much sense with the rehab at 20k plus which is what is holding us up.  

My team is looking at a rental property in Georgia that is on the market for $50k, with a 70k ARV. The estimated rehab from looking at it was $10,000 (new windows, carpet, holes in the wall) but the bid from the contractor came back at $17,500 with $10,000 of that allocated to replacing the windows. Our goal isn't to flip for quick cash but to acquire as a rental even if it only yields limited equity on the buy (controversial I know).

After calling around I found out that we can get the windows done for a fraction of the cost the GC quoted us, also the holes in the wall and the carpet could all be repaired and replaced much more economically.  

My question is how do you go about confirming your GCs bids, aside from the obvious getting multiple bids, and do some of you just hire out sub contractors yourself to save some money?  

My other question is what is the best way to finance this? We could use a fix and flip loan and then refinance (BRRR) but the margins are so slim that our lender isn't super motivated to do the deal. We also aren't able to get a conventional loan because of the rehab required. Kind of stuck right here. Let us know what you think we can do.

Thanks. 

The question wasn't about the cost of funds. It was about how you characterize the funds. The fact is cash offers tend to get looked upon more favorable than ones that are being financed.  Characterizing your hard money as cash can help you win the deal. Most people who claim to be "cash buyers" are really just using their line of credit or hard money because they can close faster than those who are getting financing.  

The key here is that she shouldn't feel she needs to go back and do anything else but pursue her deal in the most strategic manner not wait for the circumstances to be perfect. 

I kind of disagree with the response here.  First and foremost, you get familiar with running numbers by doing not by thinking so you shouldn't avoid a deal just because you aren't "familiar".  Second, a lot of times cash and hard money can be used interchangeably.  Hard money is effectively cash and you can represent it as both.  Lastly, you CAN interchangeably use the flip or wholesale technique.  Its is is smart to have multiple exit strategies going in.  

In regard to the actual question, I don't think you have to show all your cards.  You don't have to reveal that you are an investor.  You simply have to inform them you will be obtaining financing or even using hard/private money.  It would be wise to have proof of funds before making an offer whether that is cash, hard money or bank financing.  From experience, most offers that don't include a proof of funds rarely get a response.