All Forum Posts by: Robert Freeborn

On a recent flip, I had an electrician set us back by 3 weeks with no shows, walk-offs and other delays.  I want to put together some contract that I have all my subs sign with some sort of contingency to cover events like this, maybe with a penalty against the final invoice per missed day or walk off. I'd also be interested in a general, "any expense or total expenses above 10% of invoice bid require direct approval. If you go over that without permission I will only be responsible for the 10% overage."  

Anyone have anything prebuilt like this you'd be willing to share?

@J Scott

Thanks J. I bought several books from BP but could never get them to properly upload on my kindle app (which I read everything on). So I ended up developing my own spreadsheet. But I’m always trying to make it better.

I’ll definitely send you a pm though. Thanks!

@J Scott

The books are useful, but when you still have to convert them to useable spreadsheets on your computer. But J’s right, the examples are out there.

I’ve been an investor for over a year now and I’m on my 5th deal. I just reread the book on estimating rehab costs and still found it useful.

I’d recommend gettin them and then making your spreadsheet using his worse case numbers (as a starting point).

@Sam Denny wait... you said you did 25% down but put 6k cash in... so which is it? I’m confused how you organized this one.

@Benjamin Manibog don’t. Don’t do it. Back away.

Your friend is succeeding because he has the gumption to get out there and do it, not because of the program.

The only exception is if the program provides the houses for him to invest in. If not, no! Scam.

I beseech the brain trust for some advice!  

A small portfolio of 9 properties has come across my desk in Angleton, Texas.  I'm currently evaluating the deal, but need to connect with a local property manager.  

So, who in the area do YOU recommend and why?

@James Dainard thanks James!!

@Jose Lira

Hi Jose. So a contingent offer can be considered as still active in that they are actively accepting offers. However, if they want to accept a new offer they have to serve a “bump” notice to the contingent offer.

The bump notice basically means, “we have another offer that isn’t contingent. You need to either perform and buy without selling your home first, or back out”.

As to if your agent was honest with you, that depends on when the offer went pending. That is super easy to check though.

Shoot me a message if you have anymore questions and I’ll be happy to drill down with you on it.

Smart move @Sherelle Montague.  I think you'll find there are many to connect with.  And house hacking down in seattle is a great way to do it.  

Hi Everyone.  I think this is the right place in the marketplace for this. 

There is a particular property on the MLS in WA state that I've been looking at for the past month.

It is a 5,664 sf building.  Mechanics type shop in the back with 3 phase power.  Tenant there pays for the 3 phase and an office, and makes up the bulk of the rent.  Rest of the building is made of office space with various renters in them.  All have leases in place now (some are new leases.)

Gross rent $7375.  Water: $84. Sewer: $80/mo. $135/mo power avg, $138/mo Internet (Wave), Waste management is $88/mo, $154.07 Propane/mo (averages to lower, but can get this high during winter.)

Asking price is $789,000.  Works out to about a 6.3 cap rate.  

Here's the kicker, and there are two of them. 

1) Back of the property is fenced in and is large enough, and could easily be made secure, for mid-to-long term covered car storage.  I estimate 10-15 spots could be put up, with monthly storage between $65 and $80 a month. Depending on layout, we might be able to fit an RV or two for increased rent, or just more car spots. So that would be, on the conservative end, an extra $650 a month in rent, or $7,800 a year in extra rent.  

2) Owner is willing to owner finance up to 30% at 6% interest only for 3 years.  

I've been trying to finance this deal, with no success.  The numbers are there, but I don't have 1) the commercial property history and 2) the cash reserves (my money is tied up in 2 flips right now) to take advantage of it.  

I would LOVE to partner with someone on this, OR find a lender that will end on it, OR be someone's agent for them to buy it.  

Any help, introductions, or comments are welcome!  Thanks!