All Forum Posts by: Dell Schlabach

Here's one we did recently, black mold throughout. Lower level finished basement, main floor all the drywall had to be removed plus floors and subfloor, upper level bottom half of most walls. 

Remediation Cost Quote 20,000

We had to replace insulation, but no studs, the treated the studs.

We had a couple pipes in the upper level floors that small sections had to be replaced.

No electric upgrades or damages done.

We did have water standing in the basement as well, similar to what you are describing.

This was my most profitable deals.

http://www.zillow.com/homedetails/9281-Chamberlin-...

Here's one we did recently, black mold throughout. Lower level finished basement, main floor all the drywall had to be removed plus floors and subfloor, upper level bottom half of most walls. 

Cost 20,000

http://www.zillow.com/homedetails/9281-Chamberlin-...

You have come to the right place, peruse the forums and learn as much as you can.

Then buy the best book ever written on the subject...

http://www.amazon.com/The-Book-Flipping-Houses-Big...

Good luck

 I suspect it will be different depending in the price range of the house. In our area that would not likely matter much in the 100-150 range but more likely be problematic in the 250,000-400,000 range. 

I would be running that past a couple loan officers to verify the truth if the statement. Doesn't ring true. 

I have been warned by agents about mold houses and severe foundation issues as well. But when properly remediated by pros, with transferrable warranties we have not had ANY trouble selling them, even in the 250-400k range. 

I don't have any experience with oil tanks but I suspect if properly remediated it would sell. 

But not advising you to do that, we each have our own tolerance for risk.  I would not buy it if it was borderline deal, but if the spread was really good I personally would buy it if the mortgage issue was resolved.

My thoughts

Not a bad idea, maybe Ill invite everyone from this thread to my backyard when i get the patio build done this summer :-)  

Or someone @Ryan Arth ;-) could organize an informal akron BP meetup at the Mustard Seed Highland Square, mezzenaine, indoor-outdoor options ... coffee wine beer organic vegetable juices something for everyone 

We structure all our private rehab loans similar to what you are describing and how @Jay Hinrichs did his. Our lenders write up their own promissory note, in our case for six month, interest due at the end. The title company "their attorney" drafts the Deed  and Mortgage. One of our lenders also draws up his own Deed and Mortgage, and gives it to the title company. It is legal in Ohio (dont know about other states) to draft legal documents for yourself, but not for others. 

It seems like you have a reasonable perspective, and are trying to get straight answers, people get extremely defensive on both sides. I am not a realtor so I am not trying to protect my profession, but some of the comments about realtors are just way out of line and totally idiotic with no reasonably perspective of reality. 

Truth is sometimes it is  lot of work for realtors and they dont get paid, they will show someone 20-30 houses and then they will go buy from a listing agent. Other times you have a seller who finds a buyer and the agent wants 3% commission on a 300,000 house that they are doing little work for. There are  both ends of the spectrum.

I have seen many deals go south after being under contracts with realtors we have used previously, I have also seen some very good realtors hold deals together that lesser people would not have been able to. My relator has also worked magic getting our rehabbed houses to appraise, and working with buyers agents to do " loan modifications" to wrap closing costs into the loan so we can increase proceeds to us. when appraisals came in low. 

Most agents in my opinion and what i am hearing from the agents here is that 2% would be more reasonable, considering that they have commission splits and other fees to be paid to their broker. 

I personally would offer my agent 2% or run it myself, If you have done a couple deals and you have a title company, and are comfortable negotiating yourself.  You probably dont need your agent, unless you want to keep them happy, out of consideration for all the houses he/she had showed you. Maintaining relationships to me is always more important then a few thousand dollars. 

Some bad experiences, is your ex a realtor and making a lot more money then you or something...whats with the vitrol?

 .. I find typically we recieve what we give ... with this kind bad advise and attitude I suspect thats what you get back from realtors

 We have bought and sold a few hundred houses in the past five years, 45 last year, we bought 17 since Janurary of this year all through realtors who take care of us, and we take care of them. Even the auction properties we buy through a realtor. 

If someone stops at one of our rehabbed houses and wants to buy before it goes on the market I will still have my agent do the paperwork and handle the details needed to close. 

Our realtor has salvaged many a deal for us, and made my life infinity easier and more profitable.

 As @Russel Brazil mentioned getting the houses to appraise can be a fine line, and one that a good realtor can walk, mine has done it for me numerous times. I am certain your closing attorney or title company isn't going to give you any help with that or dealing with difficult buyers or sellers. 

 As mentioned if the appraisal doesn't come in the seller does not need to drop the price. We had one a few weeks ago, listed 259,900, multiple offers the first weekend, Two offers came in, one at 264,900 and one at 265,000. Appraisal came in at 250,000 Ouch! We sold it for 259,900 buyer put up 10k more then appraisal or we would have put the house back on the market. 

It's much easier to get what we want then it is to figure out WHAT we want. 

Good to read study learn strategies, see what appeals to you, then committee to one try it see if you you can make money, see if you like it, if you don't try a different one, if you do focus, push and become the local expert in it.

 Thanks ... Sometimes your biggest screwups become your best work in the end. Custom design by Dell :-)