All Forum Posts by: Michael Slockers

I will be out of town for this first one, but definitely interested in the future!

@Kyle Houlahan People are being pretty hard on you, maybe for good reason, but based on your story, you had little understanding of the magnitude of the issue. I personally may have had the AC charged the day before closing, but who knows?

I've had an EXTREMELY similar situation happen to me on a house we flipped. The day after closing, the buyer communicated the AC wasn't working. As an investor, of course we want our buyer's to be happy. So yes, I did look into it for them. However, the final determination was that the buyer had ample time to perform inspections, including AC inspections. They did these inspections and did not find any concerns at that time. Additionally, like you, I had bought them a home warranty. Therefore, we didn't jump through any other hoops to get them taken care of. However, it has always bugged me a bit and my Lesson Learned from this experience was to go over-the-top, when selling to a retail client, to ensure everything is going to be to their liking after the sale is closed.

@Rachel Paul I'm sure there may be some options but please give some detail as to what you're looking for. And the 1.5% is what? Are you referring to 1.5% monthly rent to purchase price?

How much are you looking to spend, will you have a property manager, are you financing or cash, how much can you pay for the "light reno", etc?

@Brittney Driskill, it sounds like the "gap in knowledge" needs resolved quickly if you've already sent mail out! PM me and maybe we can chat. How much mail have you sent out? 

It may be worth you doing some heavier research here on BP or purchasing one of the cheaper "how to wholesale" courses online which may get you a sample contract. The contract between the wholesaler and the investor/buyer needs to be an assignment contract (if assigning) or a sales agreement (if double-closing). Most title companies will not do dry closings, and the double-close will need to be funded first by the wholesaler, then separately by the cash buyer.

Like I said, PM me if you want to get more dialogue going. 

By the way, the best way to resolve any gap in knowledge is to experience the pain of not knowing. If you land a hot deal out of your marketing, you'll be forced to learn quickly and that is a good thing, not a bad thing!

@Steven Osterhout I do have a guy I've used in Skiatook. He is not a CPA, he is a tax accountant and does book-keeping. But he does great with small businesses and knows how to take full advantage of all the tax benefits of rental real estate, as well as balancing the active business side as well.

Hey @Andrea Tapp it sounds like you've got some great feedback on this posting already. The only thing I have to add is that you obviously want to preserve the long-term relationship with this lender. I'd guess this is his first owner-finance (great job to you on landing this!) and therefore he still has a landlord mindset! Pretty silly for him to go in and enter the property without your permission, but I guess the lesson here (for you and me both) is always make your first move changing locks. 

You should address it with him but delicately ;-)

Hey @Steven Osterhout, the numbers don't sound too bad. I do agree with @Lisa Williams that of course it depends on area, etc. Plus, with the HML, you're going to be stressing out (or I would) if the house takes 3-5 months to sell once completed based on not being in a good flipping area.

Here's some quick points to consider:

1. Do the comps have central Heat + Air?
2. Are your rehab numbers based on actual estimates, or your ball-parks?
3. Do comps have a garage?
4. What is average days on market for comparable sales in fixed up condition?
5. Do you have any other options for borrowing? PM me if you want to talk about this option. We've had some luck here in town with local lenders.
6. Simple things like flooring and paint are left off your list, but I assume are also necessary. Make sure those are in your budget b/c they will add up! Even cleanup can get expensive...

Reach out if I can help!

Michael

I read the book too. I have mixed opinions, but overall I thought it was great, particularly for the college-age individual, and would be life-changing for someone at that age.

I agree with most of the book, thought it was pretty encouraging, though somewhat repetitive. My biggest thought is that it wasn't as much a "real estate" book and many of the life/spending principles don't apply so well to someone with an established family. Dare I ask my wife if she wants to move into a house-hack fourplex? LOL I'm joking of course, that may work for some people.

Overall, good read. If you want a "Real Estate" book, the "Finding and Funding Great Deals" is one of the best I've ever read! 

@Rick Martinez, the simple answer is that if you love construction, headaches, and managing a long-term project, and have access to a parcel at a great price, then new construction MAY be an option. But if you choose this route, you're trading time for money. Having built several new construction projects, it is tough work, and some of the other posters have made great points about the assumptions on getting subcontractors as well as refi estimates.

If you want to BRRR, I believe the key is patience. How many offers are you making? PM me and we can talk more if you're interested.