All Forum Posts by: Luke Meeker

@Bijal Patel

Thanks

@Johny Omaga

What due diligence process are you working through for buying, what I assume to be, sight unseen foreclosures?

Curt,

Thanks for sharing this information. I thought atlantareai.com was the only REIA group/s in Atlanta. I've been to many of their different meetings and I will definitely be looking into gareai.com and their subgroups now. Which subgroup is FWIW, I don't see a subgroup that matches that acronym?

As for the "contractors section" are you referring to the "Home advisor" app? I've  started working through the app questionnaire before but didn't finish. I didn't know how it all worked. I have looked up construction companies in the BP company tab though. I got a GC from there to get me a bid on the property I'm under contract on. Two other GC's that came to the property are completely unresponsive to my inquiries for getting their bids. I then had a GC acquaintance I met at the "have and wants meeting" come out to give a bid, and the verdict is still out on that. I have to get a bid to the appraiser by this Friday if we are going to close on time. 

Feels very out of my control and beyond frustrating, but I'm trying to work through it. Another possibility is closing now then doing a second mortgage or refinance with a Homestyle loan after we own it.

What I would love is to get an estimate by giving a GC a list of work that needs done along with pics and a sketch of the layout, sight unseen, because chances of getting in the house again are slim. Their estimate would of course be subject to change once they had access. 

Do I need to become a member to get the email list?

Super Happy about gareia!

Thanks,

Luke

Hi BP,

I am looking for GC recommendations to run a Homestyle Loan renovation in Atlanta Georgia (Tucker). Please let me know if you have any suggestions!

Thanks,

-Luke

Lol. I have no idea how that happened. Thanks for letting me know. (My second post).

Hi BP,

I am looking for GC recommendations to run a Homestyle Loan renovation in Atlanta Georgia (Tucker). Please let me know if you have any suggestions!

Thanks,

-Luke

Joe,

Thanks for replying again.

I just got a quote for $678/yr for landlord insurance from geico.

$155K for replacement

$300K for personal liability

In your five line analysis, isn't this exactly what all experienced investors say newbies shouldn't do? That is, don't leave off vacancy, capex, and maintenance?

Also, the $105k would ideally get financed because the conservative ARV is $130K.

@Todd Rasmussen

Thanks for respondinng. 

I will keep the PM idea in mind moving forward. I agree with you on the loan being key to this deal. I spoke with the lender a couple months ago, along with several others, and I can't remember if this specific lender was on the commercial side or not. I am waiting to hear back from the lender I will be refinancing with and I can give you more details then.

Joe,

Thank you for taking the time to respond. Here is some more information:

1) Property Management - There might be some confusion with the 17.82%. That percent is derived from the percentage that the PM expense is of the GOI (PM Percentage = PM cost/GOI). Most PM's here are at 8% (I used 8% in my calculation not 17.82%) of the monthly rent and take the first months rent once they find a tenant, which is why it ends up being 17.82%.

2) Insurance - This was definitely a guess and I can call some providers to get a better number on this expense.

3) Repairs & Maintenance - This is an educated guess based on owning a primary as well as reviewing other investors blogs, and etc. How do you estimate or "know" this number yourself?

4) CapEx - This is another educated guess based on reading other peoples blogs and etc. How do you calculate this number? 

5) Vacancy - This is another educated guess. I used 8% and haven't ever seen anyone else use less than 5%. How do you usually calculate this? 

6) Loan terms - These numbers were based off of lenders able and willing to lend to me.

Also, this is a single family home.