All Forum Posts by: Dell Schlabach

 I have noticed the recent shift to "discoloration" in the descriptions. Seems like all the banks are doing that locally. Last week we had one that was so "discolored" that we had to stop at listing agent office to pick up the keys and sign a disclosure of "discoloration" before we were allowed in.  :-)

I would say your feet are already wet, up to your ankles at least.

I would say you have already done more that 70% of the people here. 

Don't pay too much attention to or get hung up with the % "rules" we have bought rehabbed and sold a few hundred properties in the past five years. I don't follow any of the % rules, never have never will. I look at how much money I want to make, if it fits my criteria I buy, if it doesn't I don't. 

Sounds to me like you are on a solid track, you make wise thoughtful decisions, stick with your plan and you will do better then most.

Yes, mine do the money is typically available anytime I need it. Also a lot less paperwork, no apprasials or other fees. We get our rehab money up front and not in draws, lot of advantages to private money. 

 I would want to speak to the "squatter". I suspect it was a HUBZu or similar auction and the "squatter" is the previous owner. See if they will do cash for keys. Find out what it would take to get them to depart willingly. They may tell you they are going to be out by next weekend which would be good for you. Most will move for the right amount of cash. How much would it take, 1,000-5,000? add those costs into your expense. Also be sure to take a contractor through if you are not comfortable in determining rehab costs yourself. 20,000 is low even for a paint and carpet project. 

We pay 10% annual rates to our private lenders. A few of them we have an extra 500-1000 flat fee per loan.

With private lenders, you can work out any terms that you both agree on. 

Hard money you are typically looking at 12-15% plus 2-5 points,  in essence 15-20% annual rate. Some are lower and some higher. 

Couple links to events where you can find like minded people

the one @Ryan Arth mentioned

http://acreia.org/

another meetup with a lot of events

www.meetup.com/SmartStartRealEstate/

We used to do some multis- duplexes- 4 - 6 plexes. 

Today we are rather narrow focused and only do single family, Buy Renovate and Sell. We also supply a core group of rehabbers, with wholesale deals, that follow a similar model in our area of  Stark, Summit and Portage Counties. 

Good point from @Karen O.  let the realtor tell you what they think is fair, if she brings you good deals and takes care of you. I would pay it. 

Mine would tell me 2,500. but he has a staff to pay to handle and coordinate inspections apprasials etc. 

I personally think 3% is very high, unless its a 70,000 duplex. If its a 300,000 then that is steep, but most realtors think in terms of 3% per side, and arent used to flat fees. 

 Might find this helpful

https://www.biggerpockets.com/forums/109/topics/76997-project-manager-staff

 We have three title companies we work with locally, one of them gets all our simultaneous closing wholesale deals. They said it is legal and not a problem with cash deals. We do 20+  deals like this a year. 

Funds get wired to escrow in two seperate transfers, first one to match the amount on the first HUD, example Net from buyer 122,431.22. Second HUD shows earnest money in the amount 122,431.22, Net Due from Buyer 7,500 or whatever the difference between your buy and sell is. Some would call it a wholesale fee. I call it my profit so we are clear I am not acting as a realtor, but selling a property I just bought.