All Forum Posts by: Christopher Dunson

@JD Martin

Great, thank you. I'm feeling more comfortable now knowing she doesn't have much to go off of. I also have pictures of the area I fixed on the roof after the inspection, and after the winds, all of my shingles were distinctly still there, which I have pictures of as well.

@JD Martin

@Mike Reynolds

Well, I did only verbally say I would help her with half, she continues insisting on all. I can just as easily call her and say hey if you don't take the deal now, the deal is off, I won't pay for any, and you will not get anything in court either. I'm sure the judge is seeing thousands of claims for roofing right now knowing there was extreme winds a few months ago and everybody wants someone other than themselves responsible.

Also, all she is talking about is putting liens on my properties. Is that even the correct way to handle this situation? I though a lien was for work done on a property that was never paid for, so the business puts the lien on said property for the amount owed. Not you got work done on your property, so my property gets a lien. Correct me if I'm wrong.

@CJ Witmer

@Mike Cumbie

That's what I figured. She is older, and lonely. Maybe she is bored. I have no idea why she is trying to push a $525 dollar bill (which seems like a complete waste of time) and refuses to split it. I was just offering to split, to avoid a possible hassle because this has never happened to me before. I am also looking to refinance these properties in the next couple of months, so I don't want to run in to any issues. As of now my flip business, and my rentals are in 1 LLC. So I'm also concerned with asset protection. If she decides to take it that far, and she loses, she will be paying court fees is that correct?

I recently had a woman who purchased a flip from me find a way to contact me with a problem she is having with the property that I flipped, sold to her by my agent.

The day of the inspection for the purchase of the property, there were some shingles (asphalt shingles) that came loose, and I opted to replace the areas that cam loose before closing. 

3 months later, Las Vegas had one of the most powerful windstorms in 10 years. I mean nobody remembers the last time something like that happened here. I would say 30% + of the roofing with asphalt shingles had, and still have significant damage, not to mention trees falling down everywhere, including on tops of houses.

A couple of weeks after this I receive a phone call from this woman who purchased the flip I did telling me what happened and if I could come and look at it. I said ok(maybe because I'm too nice).

I let her know that I would send a few people out to do some estimates ( maybe $350 dollars worth of work including materials. All of the roofers were very busy during this time due to the increased business from the wind. She received some estimates for $750 and she buys material, which I told her was terrible and I would have someone out to her place shortly and I have extra materials that I can just give her. At this time she stated she wants me to pay for it, and I told her normally I wouldn't but I will pay half. She verbally agreed.

I called her a week later to let her know somebody is coming to fix it for $350 and she said great. An hour later somebody contacts me with a bill for $550 and says that I need to pay it. I told them you didn't do any work for me I won't pay it. Turns out to just be one of her friends just trying to collect for the person who actually did the work. I went to the house after just to look at the work done, and the person who did it just took new shingles and nailed them on top of the old ones with the nail on top of the shingles. Water can obviously get through the nail and cause more damage to the roof, so I told her the job was terribly done and I'm concerned. Long story long, she is threatening to put a lien on my rental properties if I don't pay the whole thing in full. I am sticking firm to half at the moment, but in the end, it seems this will cost more time and money for the losing party. Any insight? 

@Michael P. 

I appreciate your advice. I definitely can't utilize the full line of credit on my own. And maybe the deals terms are a bit too steep anyways. I'm just looking for avenues of expansion. Some people starting out expand greatly within a 2 year period or so rather it be flipping homes, brrrr, apartments, or whatever other avenue/s of real estate they take. Others expand 1/5th the amount in 10-20 years, because they think there is no other way. I'm looking for the other way is all. If you don't mind me asking, how did you acquire the capital for your new construction? Good luck to you with your company/s as well.

@Wayne Brooks

I believe they are mainly just using my company's record with them of paying them off early and on time monthly payments as the main financials. HML's care most about the deal in general, and the track record of the ppl they're giving the money to. No track record, plan or know how, no money even if your a millionaire. As far as the proof of only 25k goes for the 5 mil, it seems they will leave it up to me if I can make the LOC work or not. One way = other investors who don't have time but are looking for an RO their money. I started this by myself, and currently I am doing this alone, so alone, I can not use that money to its fullest until I can find it or make it myself.

@Jeff Rabinowitz

I don't think it's very professional to put down anybody's work work nor accomplishments. I also have 2 4 plex's. Although I may not be making extraordinary accomplishments, I know it takes many people 10+ years for just 2 rentals, and I believe one of those reasons is because they don't actually try very hard to find a way. I have done what I have done on my own. No mentors. Just reading. I sold my house, quit my job, and went all in. I just recently started posting on here. For the record, I think what I have done in 7 months is nothing, and I am not content with my supposed accomplishments. But I am looking for a way to make my dreams and goals happen instead of pretending they cant.Your a lender what would be your terms on someone who has paid you back your money within 3 months every time you lent it made all payments on loans from you ranging between 90 and 328k?

I read a post on here a while back where 95% of the people including seemingly experienced investors were saying it was impossible to get more than 1 rental property every year or two on an average salary. The other 5% had no idea why they thought that was not possible. This only added to my opinion on how most people can't figure it out, or are unwilling to take the risk where if they put in all their effort they would not fail in the least.

I'm not saying the LOC's from these HML's are the solution. ATM it's not even an option because I can not utilize it to its fullest which ups the risk on my end. And maybe 30k up front is not the best option.

I've heard so far 30k is sketchy and hard to swallow, but I haven't heard anything on how I can make it work. No strategies, no solutions, other options? 

We can all find on this site very quickly 2 ppl in the same circumstances where 1 accomplished much, and another accomplished nothing in a 1 year time period, or a 20 year time period. 

@Michael P.

I have always used a HML on all of my deals, so I always end up spending pts up front. This larger LOC actually is a bit cheaper in the long run than if I were to finance that amount individually. My credit was over 700 6 mo ago, but I have maxed out about 40k in credit cards since starting my business and have pretty much been out running the payments by constantly turning the money.

I will say that although the 30k fee is not ideal. I have used a HML for all of my deals, and although it may lessen return on one property, it allows me to do 2 flips at once, and make a better return over the same time period. So far over the 6 properties I have done totaling about $741,000 dollars in purchases plus them funding 15k, and another 35k in rehab costs on 2 projects, I have spent about $50,000 doing business with them. This 1 million in funding option is a $30k payment to do $1200000 million worth of transactions, or if I flip the money every 4 months, $3.6 million in transactions per year, as opposed to doing $150k worth of transactions, or $750k per year in the same scenario. Although I would love to have my own money for this, and keep all of the profit, in a partner scenario, I will still make much more return on my money over the years period flipping properties in higher volume.

Not everybody can qualify for this type of loan. I think it is special and some people might be happy to be a part of it. One option I see is having my partner(hopefully only 1 or 2 people) pay the 1k transaction fee. Or even split the initial 30k fee. I think there are a lot of ways to mitigate the risk bringing in a partner or 2 while raising the amount of profit that either of us could make on our own. 

I know I have a different perspective than many, but if I have a completely wrong perspective, I am always open to hear it.

@Joshua Fulenwider

Thank you very much I appreciate it.

I hope I explained everything well. There was a lot of information I was trying to throw out in one post. If there are any questions please ask and I will make it more clear.

@Jeff Rabinowitz

I appreciate you tagging him for me. I am on my 6th flip at the moment within a 7 month period from when I started my company. They have all returned between $10k and $35k. Although I have only had successes with flipping, I realize that I still have plenty to learn. 

I am approved for the 1 Million dollar credit line, but with only 150k disposable, I won't be able to use it to its full potential leaving me in a position where I may not benefit much from it.

I am the type of person that hold myself to a high standard, which is above average. If I feel I am falling behind on my goals, I try to find a way to make it happen. Aside from flipping homes, I feel there is another avenue aside form flipping houses that may yield a better return such as forced equity in multifamily. 

Lol, I am definitely in a hurry. I just expect a lot from myself and I know I can accomplish the goals I set. I realize they are above average, but anybody can accomplish average.

Honestly, as long as it's well thought out calculated risk, with my personality, I don't a better way to do it. @Jason Chen