All Forum Posts by: Dell Schlabach

I ran across this, did you find a mastermind group?

If not you could offer to start one, May find others to join.

I would consider it.

A little background, We have been in the game for 10 Years full time,  experimented with many different rehab models, we rehabbed 15 houses last year and wholesaled (bought and sold) 28  houses to a couple other rehabbers, half of them to former employees who are now doing their own rehabs. 

We don't do rentals, if you are looking for investors interested in increasing their rental portfolio I wouldnt make a good fit for your group. 

Hey @Charles Dance curious to hear about your experience myself.

Met recently with a local New "investor" who had signed up for the program dropped out after a month when she didn't get any responses to multiple offers she had submitted to Josh group for evaluation. 

Welcome to Biggerpockets and Ohio......both good choices! We are in the buy fix and sell game a bit south of Cleveland, dont do rentals.  Good luck with your new venture!

I cast another vote for @Jay Hinrichs, because he plays, in a big way, on the cutting edge of what is happening in multiple aspects of the real estate world. His insights in how the big boys play the game is always interesting and insightful as is his commentary on the gurus, which seems a bit different viewpoint than most on here. 

A fourth vote for @K. Marie P.  a depth of wisdom experience and the ability to cut through crap to get to the truth/answers/solutions and put things into  perspective, that is highly impressive.

Third I vote to bring Dave Ramsey on, be a nice change of pace ...how is that one coming @Brandon Turner ...believe you were working on that, then K.Marie and Jay Hinrich right after that, be a good lineup for the first of the year :-) 

Small % with small risk is rarely a big incentive for high performance In an equity partner. 

Couple questions, who finds the deals, are you charging interest on the money, is he doing most of the work, or is he doing some and subbing a lot out, are your projects typically 6 weeks or four month, lot of variables to take into condideration to make it fair and profitable for both parties. 

How about 50/50 he doesnt get paid for his labor, you dont charge for the cost of money. I have a few partnerships, most are split about 50/50 with some variables depending on what each party brings to the table. 

@Daniel Miller

I second @wayne brooks, it happens all too frequently that the bank doesnt have clear title when they are "supposed" to close. They typically give you thecright to extend for an extra 15-30 days, if they dont have clear title at the end of thst period you typically can continue extending. Can get frustrating, you would think they had clear title before they listed, but many times they dont.

We closed on one three weeks ago that we got under contract in February,  we were supposed to close two weeks after original purchase agreement. Many many extensions later we finally closed, longest one ever. Most close within one 30 day extension in my experience. 

@Daniel Miller

1. @Donald Lartson, I second @nnanurnyi anigbogu, 

The Book on Flipping Houses and the Book in Estimating Rehab costs, are really the Bible for running a successful rehab business.

If there was ever an example of the 80/20 principle or the 90/10 thus would be one.

80/90% of all the  wisdom contained in books for  running a successful rehab business is contained in these two. 

If you only read these two and apply the principles,use them as your reference manual, you will be much further ahead then if you read 10 other rehabbing books,  in my opinion. 

If you want to read another one after these two, I would read Millionaire Real Estate Investor, by Gary Kellior

Sounds like you have someone who understands business and real estate. I suspect they could invest more than 5,000. How about providing them the information they are asking for, and in return asking them to fund most or all of a project.

We have used a lot of private money and i would always have one private lender per project. If individuals want to lend less it would be an un secured note.

We provide our lenders....

Purchase Price Info, Property Address, Projected Rehab Costs, (typically just total amount) ARV.

For security......

Promissory note

Mortgage

Added as an additionial insured to insurance policy.

For a 5,000 note I dont provide any additional security, as it would not e tied to a specific property. 

I agree with @Kyle D. we dont include washers and dryers either at any price level, rarely if ever will washers and dryers be the determining factor if people choose your house over another one on the market. Our typical houses sell in range from 125,000 to 300,000. 

Suburbs of Akron Canton is where we focus our rehabs. Selling is pretty easy if you have a good product, finding profitable deals is a bigger challenge.

Our group is on target to rehab a little over 40 houses this year, stark, summit and portage counties, excluding Canton, and Akron schools. 

About 70% of our buyers ask for radon inspections. Roughly half the houses tested have radon levels above acceptable levels.  

Cost of remediation is about 1,000.

The way we handle it, whenever we get an offer on a property and the buyer wants a radon test. We write in initial counter offer that if there is radon, buyer and seller will split costs, most buyers will accept that. If we don't write it in before inspection, they always want us to pay for it. 

Thus most radon mitigation costs us about $500. Not a major expense. 

There are plenty of good subcontractors in Ohio, assume gcs as well, although I haven't hired any, we act as our own gc on our projects, as do the other rehabbers we work with.