All Forum Posts by: Dewey Jurich

@Grant Boynton Did you figure out how to do this? I have a big deal here in Kalispell I'd like to figure out--but like you--I need more money. I have about $60k in cash and about $30k more I can pull from a HELOC. I found a great deal on townhouse lots and I want to build a few townhouses. It will take more money to do that though. I need a partner or an investor willing to lend me some money! Let me know if you found any great ideas!

Maria, why not try to broker the land to an established builder. Get a few % of the sale, get into next deal. Here in PA development can take years to get approvals for utilities, storm water, variances, etc.

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best of luck, keep us informed of you progress.

Do you have any college stats? Number of full time students, on campus housing availability, commuters? Cost of room and board for on campus living.

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Originally posted by @Jen H.:

@John D. We never stated anywhere to them that we are a licensed and bonded contractor...if they are use to using licensed and bonded contractor's they would know that the contractor's license number would be located on the actual bid.

I'm not sure what services you are even providing if your not a licensed contractor. Are you providing "labor" (and i use that lightly) that you expected the investors to pay cash so there's no trail?

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Exactyl. Cost is cost. How did you arrive at your cost? They are in business to make moneyas well. Agreed that you need to get 3 prices and a clear scope of work among the 3 (apples to apples). Then even if you are 4k off, you need to decline respectfully. That's typically too much to try to make work and in the end it will get messy. What about change orders? Unforseen Conditions? Ask him what his specialty may be. Maybe he's better at bathrooms, or just wants to do rough ins.

if you try to beat a round peg into a square hole, you'll end up needing a lot of wood filler.

Originally posted by @Michael Hayworth:

Aaaand....this is why my company stopped taking investor work, except for my own houses.

Reno costs what it costs. Labor + materials + overhead + a fair profit for the contractor. It doesn't matter what you "need" it to be.

If two or three different plumbers tell you $10K, the cost is $10K. If two plumbers tell you $10K and one says he'll do it for your $6K, you'll probably regret it in the end. He's either planning to cheat you, or he doesn't know how to run his business and will either change order you to death or bail o the project.

I can't tell you how may conversations I've had with investors who've bought a house where ARV & rehab costs were based on hope & prayer, then get frustrated with the contractor because he can't stuff $50,000 worth of reno into a $30,000 budget.

The remodeling market is booming all over the country. Most good contractors have a backlog of work from homeowners paying retail. If you want work done from a quality contractor, you're going to have to have your ARV and reno costs in line, so you've allocated a realistic reno budget.

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great job!

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look into DIG Diversified Investors Group in your area. I've gone to a few and they are a wealth of information and great local contacts.

My partner and I are getting started. We met a lender on here, other local people doing big things.

Cheers and good luck!

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Hey guys, I'm working on my first deal. we're completing financing approval now and wanted to run this by the community.

I have an LLC with a partner.

We are g with a commercial mortgage. We don't want to risk a bank calling the note if we quit claim a traditional mortgage.

Deal basics:

Duplex house close to transportation

Purchase price: 109,000

Closing costs: $3,500

rehab: $5,000

ARV: $125,000 (maybe 135,00), but the house should be almost turnkey

Downpayment: $21,800

Loan Fees: $1,500

Loan Interest: 4.8% over 20 Year Amortization

Monthly P&I-$563

Montly rental - $1,000 Each unit - $2,000 total

Monthly Expenses total: $1543

(Monthly- Vacancy 200, Capx-100, Water-20,P&I-563, Repairs-160, electric-50, Management-160, Taxes-293)

Cashflow: $453'

Electric is only for common areas, all utilities paid by renters.

Is this type of commercial loan a good fit for buy and hold? It seems to work on paper, but wanted to see what others thought.

Property Management- I found a contact that will PM for 8% of rent, and place tenants for the first months rent. Is this standard?

Thanks everyone! My partner an I are getting there!

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I'm looking for these professionals in the SE PA. More specifically Delaware and Chester County Area. Any recommendations are appreciated.

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How are you so sure they are 50% below market value without knowing the real condition of the properties. Like others have stated, if 4 need roofs @ $5-10K each, and have HVAC issues, etc, whats the real value? Is electric up to code? Are they HUD rentals? Will they pass HUD inspections? Do the municipalities have U/O inspection prior to renting? How do you account for this in your acquisition/long term financing cost?

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great info everyone. Thanks for sharing. My partner and myself are looking at our first property.

To recap:

1. Purchase under personal name.

2. Transfer title to LLC (day after closing)

3. If refinancing, keep in personal name until refinanced. Then transfer title to LLC.

I'm assuming to utilize the legal protection of the LLC, you would need a rental contract that permits the owner to transfer /assign ownership without renter consent as long as rental lease is unchanged.

Questions:

Do you have to notify the renter of the title change?

Who do they make the payments out to?

Is there a liability issue that would open you to personal obligation/liability through the quit claim method?

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All Forum Posts by: Dewey Jurich

Dewey Jurich has started 1 posts and replied 17 times.

Post: Turning a 5 acre Multifamily Zoned Lot into a Cash Cow

Post: Salisbury, MD Real Estate Investments, just getting started

Post: Construction Project Management-Flippers Cancel last minute

Post: Do contractors not get it;more you charge me the less I can flip

Post: Lessons learned on my 1st BRRR

Post: New member from Pennsylvania

Post: First Deal Financing

Post: Looking for REI friendly Lawyer and CPA in eastern PA

Post: Turnkey portfolio - feedback welcome!

Post: Due On Sale Clause