All Forum Posts by: Gary Bailey

Cincinnati is a great market for buying and reselling! There are plenty of areas where properties can be purchased for $40-$50k that are worth $85-$120k after repair. Also, there is a ton of housing stock from the 1940's - 1970's, which is prime for flips.

We had a lot of luck adapting the standard local Board of Realtors contracts when we first started out and couldn't afford an attorney.

It was nice because we could reassure our buyers/sellers by saying "now I'm not an agent but this is a standard Board of Realtors contract that most brokerages use."

I think sometimes buyers/sellers get intimidated when a completely custom, way too long or overly simplified contract is placed in front of them to sign.

Just remember that the contract is designed to protect all parties. However, contract law says that it could basically be written on a napkin in crayon and it would hold up as long as both parties are in agreement!

Gary

My whole day was ruined when I found out that "Operation Repo" was just a re-enactment!

I can't say enough good things about the "Fluidmaster" toilet kits that both Lowes and HD sell.

One of my customers, who has been buying rentals since 1990, says that he tears the guts out of every toilet he installs (even the new ones) and has NEVER gotten a call about a leaky toilet.

I started taking his advice in 2008 and have had the same results. Don't mess with trying to fix part of the problem when for $15 more you can have a hassle free toilet for years to come.

Fluidmaster. It's in a green and red box.

Good luck!

Gary

Jackie Lange just posted this in the forums, it might be worth checking out:

https://www.biggerpockets.com/forums/517/topics/93812-using-trusts-for-privacy---conference-call-invitation

Not sure how it works in your state but in Ohio we can look up LLC info on the Secretary of State web page.

Best of luck! Try putting a sticker or note on the door of the house letting them know you are interested. It's at least worth a shot.

I agree with Wayne Brooks, tons of red flags with this contractor. Remember that their are THOUSANDS of contractors out there, and only 1 of YOU.

Here are a few tips on choosing a contractor that you might want to consider:

1. Have a written and detailed budget before speaking with a contractor.

2. Get 3 bids for each section of your rehab (plumbing, electric, kitchen, baths, etc.).

3. Avoid paying contractors hourly!! (They refer to this as "time and materials" ....it's good for them and bad for you) Have them bid out the job for a flat rate (they can separate the materials out if you'd like). For example, if your kitchen budget is $4,000, get bids for the entire job (cabinets, counters, tile floor, etc).

4. Get everything in writing. You would never consider buying a house without a written contract, why would you go into a rehab project without a written contract from your contractors?

5. Avoid the "profit sharing" model. Let the contractor know that you reserve profit sharing for contractors who have proven themselves. If this guy is already asking for a cut of the profits on the first deal, imagine what he'll want 6 months from now!

I know that this stuff is tough to do, but please believe me when I tell you that you'll thank yourself later when things go well and you will want to pull your hair out when things go south.

Gary

I second what Jimmy Watson said. You must get the funding lined up first. If you find a deal, then take a few weeks to secure your funding, and then come back and the deal is still available then it's probably not a deal after all.

Banks/loan officers are one way to go but very few of them still offer financing on houses that need any work at all. That leaves you with the option that most new real estate investors opt for: Hard Money Lenders.

HMLs are definitely more expensive, but if they are your only option then expensive is better than no funding at all.

Here are some things to consider when seeking out a Hard Money/Private Lender:

1. Beware of online "affiliate" sites where anyone can sign up to represent themselves as a Hard Money Lender

2. Avoid companies that charge a membership or application fee to gain access to their "network" of private lenders (note that many credible HMLs will ask you to pay for your appraisal up front, which is acceptable)

3. Try to work with a lender who is familiar with your market (if they are actually located IN your market that would be even better!)

4. Ask to speak to other borrowers who have successfully used the lender in the past so that you don't get "left at the alter". (I believe there is a board on BP called "have you done business with this company" or something like that)

5. Get a firm commitment on their terms in the form of a Good Faith Estimate, many lenders will try and switch up their requirements during the loan process

Good luck! Just a note that when you first start looking for HMLs it will seem like they are growing on trees but you will quickly find that most of them are not what they appear to be. Don't get frustrated, just keep moving forward and eventually you'll find one that works for you.

Gary

Dyches Boddeford is probably one of the best resources out there for Land trusts. He was able to help us out on some issues that even had our attorneys stumped. Www.Assets101.com is his site I believe.

Depending on what state you are in, Criss Cross by Haines is a great (paid) resource for pulling comps. Www.haines.com