All Forum Posts by: Dan Bryskin

@Shiv Gettu

Bring a trusted, experienced general contractor thorough the house.  Are there structural problems? What are most expansive items? How long will it take to fix / get online. How much will it cost? Does the seller have any inspection reports from prospective buyers? Would he share? What will this duplex sell for once completed? What's the area like for rentals? Will you get good tenants? Is this the best deal you can make? It seems like it needs a significant rehab, those are not for everybody .... 

Good luck

@David Brown, first you should make sure you understand the difference between money mortgage and contract for deed, as this are two distinct ways owner can finance your purchase. 

1. Money mortgage (preferred way for the buyer). You are the owner of the property and the other party acts as a bank. Standard foreclosure laws and protections apply. If you choose this rote, use the title company. They can help you in creating and recording money mortgage.

2. Contract for deed (preferred way for the seller). Seller remains the property owner until the contract is fully executed (last payment is made), buyer has benefits of ownership, but if something goes wrong, it's a contract termination not foreclosure. In my state forms are available from secretary of state, or use a real estate attorney. Make sure your contract is properly recorded with the state or you may face a fine. 

Good luck.

@Brandon Giarusso

I am no lawyer, but here are my 2 cents. First look at the seller disclosures. If they signed a seller disclosure alternative even though they have lived in the property, it may be a fraudulent transaction or you may be covered by broker(s) E&O insurance. If they have signed a disclosure, they should have answered a question: "Are you aware of any work performed on the property for which appropriate permits were not obtained" - if they said no - you may again have a recourse. Have you signed an "as is addendum" ? if you had, you may have limited your options. Did you hire an inspector? If he failed to indicate some of the deficiencies, his insurance may be liable. Did the sellers have any trade licenses, like an electrician, real estate agent, general contractor? That may affect your options.

Have you been represented by the RE agent? Start by talking to his broker. Next talk to the attorney, specializing in real estate. Good luck.

I am looking at how to align my interests with my in-house general contractor. In my best interest is to get project in minimal time, for least cost and get the best product. For contractor to make most money, he wants to inflate the bid. Say I have a project, say reasonable number for labor and material is 100k. My GC wants to get a bid as high as he can, because that means more profit for him. I'd like the project to produce more profit for him if he delivers me a project at 80k, instead of 100k or 120k. To do that, I need my GC to work for the percentage of the profit, but it gets trickier as the guy needs money every week. I am curious to see what are some of the methods people here came up with, to incentify the end result vs incentifying work. Please share your thoughts, thank you.

@Account Closed

N Minneapolis, few blocks from lowry & penn

We have another one of our rehabs hitting the market in Minneapolis today. It's a magic what a couple of nails and gallon of paint can do. But don't take my word for it, take a look. I will provide stats & numbers after we sell this one.

@Jack B.

Rentals a slow right now, since school has started. People who pay a lot of $$ for the house, have their kids in school. But why not to try and post a few different adds, with the different pictures / wording / pricing? See if you have a sweet price point. Good luck 

@Peter Ulstad

As @Bruce Runn has mentioned. Even if you are successful in converting from 2 to 3, you are going from residential code to commercial.  You will need 7 continuous feet in the basement,  stairs to code, sound and fire assemblies. Engineer and the architect to sign on it ... Zoning, planning, plan reviews, etc. Expanse of going this route may not be worth the extra unit. Not simple by any means. Just add a space to the fist floor unit. Congrats on your purchase.

Perspective Tenant, guy in his early 20's, wearing expansive clothes, driving a brand new Cadillac with out of state plates. Some tattoos are showing up. After a few compliments and jokes, I am asking about tattoos. Did this one hurt? Let me see. He rolls his sleeves up. Bloods. 

Me: what do you do?

PT: I am in sales

Me: (thinking) I know what kind of sales you are into. (saying) Here is a rental app, but I don't think this house is going to work for you. 

PT: why not?

Me: Look at that yard, it is huge, lots of yard work. With your sales job you probably travel a lot. Between your travels and such a beautiful girlfriend, why would you want to spend time doing yard work? Plus being young, you probably want to through a party every now and then. That cop next door works narcotics, home at weird hours and gets really worked up about the noise

PT: thank you sir, I am going to pass on that house.

Me: Good luck in your search sir

@Cliff Bailey

Fools and their money part ways rather quickly. There are 100's of scenarios there someone will load your credit and in exchange for some cash you will end up with large debit / worthless asset. Look up mortgage fraught in 2005-2008. In case i am not crystal  clear:   don't walk away, run away.