All Forum Posts by: Hattie Dizmond

Originally posted by @Steve Vaughan:

I can name quite a few extremely knowledgeable members that were very generous with their time that up and stopped posting altogether.  Most a few years ago, some more recently. I don't know why they left or where they went, but I feel repetitive answer fatigue, too.  I certainly yap a lot less than I used to.

I look to and connect with the new rock stars like Caleb that are out there helping anyway they can.  I don't reach out much, but when I do, it's usually to someone like him out there helping.  Making connections (for sales and funding apparently) are not why all of us are here.

No, there shouldn't be a VIP area. Sheesh.  Think of why Josh even built this thing.  I wouldn't join a VIP area if you paid me, much less do I even bother being a 'Pro'. Let your stats do the talking if that's your thing.  

Maybe start with the guy in your mirror. Instead of offering yet another JV deal, help someone out. Show you have the knowledge and experience to do something besides sell while you're here.

Steve is exactly right.  I spent countless hours every week on BP, answering questions, explaining concepts.  I fielded phone calls from newbies looking for advice and countless out of market investors looking for detailed information on DFW real estate.  I've been told, more than once, I should be charging for the quality and level of information I was providing.  I didn't, because I felt it was my responsibility to give back to the community.

I finally burned out.  I got tired of people posting questions that have been answered 1000's of times, in the forums, in the blogs, on the pod casts, in FREE materials available for download right here on BP.  About 2-weeks ago was my first sighting on BP in over 2-years.  The problems have only gotten worse, but I'm doing what I have always done.

What's changed?  My approach.  I no longer spend time even reading questions on the forums, which would have been fully and better answered with a simple search of the site.  I no longer get frustrated by the arrogance displayed by those asking the questions or even by some of those who think, simply because they've done a deal, they are the de facto expert and fail to recognize the difference between an opinion and a fact.  So, I don't respond to posts that show a lack of initiative, because those people won't be successful, regardless of what I tell them.  And, I now make liberal use of the "Mute User" feature.  (Although, I seriously miss the Block button.)

If you're annoyed with the quality of the discussion on BP, then do a better job of private networking or change your interaction habits. In the end, this is simply a social media site, which happens to have a focused specialization around REI.

@Kevin Phu First, you are in CA, so my opinion is it would be a waste of money to insulate the garage, unless you are planning to put in an A/C unit and use it as a man cave. Second, unless this is a high end property, where it would be expected, I wouldn't spend the money on plaster and paint. Personally, I would drywall the puppy. If you wanted a little more of a finished look, you could tape and bed the drywall seams. There are plenty of places where bare studs are fine in the garage, but even I feel like it is a little too unfinished.

@Zach Fremen It's called a Mechanic's Lien. Google it for your state, and it should give you all the info you need.

@Chris Schroeder First, your friend is right. You aren't getting much value having an agent involved. Second, Section 8 rent levels are set based upon location and number of bedrooms, which determines how much a property can rent for. Financial qualifications of the tenant determine how much of the rent Sect 8 will actually pay. That means, if the house is approved for up to say $1500, but the tenant is only approved for $1000, they can still rent the property, but they would be personally responsible for the $500 delta between the 2 price points. Sect 8 rents haven't gone down. In this market, there's no reason to believe they will. It sounds like this property will cash flow positively at a much lower rent, so I wouldn't be too concerned. Just be cautious, if you need a new tenant, with folks whose entire rent isn't covered by sect 8. Getting that delta amount from the individual can sometimes be a challenge. As for the wholesaler, generally when a deal is cash only it is because the property will not qualify for underwriting in it's current state. I don't know of that is the case here, but I would definitely want an inspection period. If everything is good, then just look at the $40k as a down payment. You can finance out of the house immediately. Still, with regard to the wholesaler, I don't know who the person is or what group they may be with. There are good, ethical wholesalers, there are shady wholesalers, and there are downright sleazy ones. My partners and I wholesale properties, when we either don't have the bandwidth to work it ourselves or find a deal that just doesn't match our business model. I like to think we are the good, ethical sorts. ;) But, I still encourage all my investor partners to double check all my numbers. I would never intentionally mislead them, but I could have just made a boneheaded mistake. Do your own due diligence, always.

@Matthew Fortune It's a really fine line we have to walk. Not flipping with the end buyer in mind means your flip will sit on the market too long. Not considering the appraisal means your end buyers can't get financing. My suggestion is always to visit as many open houses and/or listed properties in the are of your flip as possible. See exactly what you're competing with and what is expected at your price point. That's basically what an appraiser is looking at. Also, if you're mostly working in a relatively small area, get all the sold data done the last 3 to 6 months. If you have access to the actual MLS listings all the better, because you'll get pictures and sold price. Once you have the information, do a feature (big items) by feature comparison of the properties and break down the price per square ft. Using this information you should be able to determine things like how much an extra bedroom or bathroom is worth in very specific areas. You will also have in your back pocket the avg proce per sq ft for very specific areas. Those things are all important factors in your appraisal, much more so than finishes, until you start getting into the (my opinion) $250k and above range.

@Denice S. Easily 2/3 of the houses in a large portion of Texas need foundation work at one point or another. It isn't that big of a deal here, particularly with a lifetime guarantee from the repair company. As far as the deal goes, the only way I would do it would be seller financed, with minimal down, and I refinance out of it at the end of the current lease term. No way I'm holding that property, until the work can be done.

@Gwilym Griffiths I'm not generally a fan of funds. And, I have more concerns about monetary funds than RE. The real issue isn't about bubbles or corrections. The real question is whether or not you bought the property at a good price, because you're buying it to cash flow. If the property is cash flowing well and was purchased at a good price, a market correction or even a downturn shouldn't change that. So, in my opinion, the question is will this fund match the returns you would be getting on a cash flowing property over the next however long? Because no one knows when the market will change. People have been calling for a bursting bubble for the last 4 or 5 years, since the true recovery from 2008 began. It might be 12 months. It might be 60 months. What is your opportunity cost?

@Matthew Fortune Really shouldn't affect the appraisal, if it's a good job. And, you certainly aren't planning to announce this fact to the appraiser. They are going to be looking at comps to value your property. What finishes are prevalent in the neighborhood? At that price point, I'd want to do enough to get good ARB value, while ensuring I don't over-improve for the market. You definitely want it to move quickly.

@Jacob Rhoads House hacking is an excellent way to get started. There are tons of guides and books, many free, right here on BP. I would recommend you try to find an investor, real estate agent, property manager or contractor to intern with or get a part time job with. The great part is you're 18. You've got 4 year before graduation? You could get time in with several of those types and have real world experience by the time you graduate. Good luck!

@Barbara Cook Unless someone on here is an Oregon lawyer, I don't believe any of us are qualified to weigh in on this matter. Since you're already working with the DA, perhaps that office can help with your question. Either way, you need legal advice, licensed legal advice. This sort of craziness doesn't generally go on down here in Texas. People get a little concerned about causing others to feel threatened, because we are probably armed, and Castle Doctrine & Stand Your Ground means we are inclined to shoot the person doing the threatening. This situation you've described is a mess. Good luck.