All Forum Posts by: Charles Kao

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I lived in flipped and I'd recommend doing that or house hacking. If you want to be conservative for a rental I recommend condos which I know is contrary to what many believe but very little to manage and lower pricepoint. Just make sure you add in assessments and add 10 percent to HOA when calculating expenses.

Carlos Flores Do you know of any lenders offering the 223f with 10 percent down? I have seen the 83 percent LTV loan you are referring too but without knowing which lenders offering it that doesnt help much.

Matt Wood Mike O'Connor Hey guys out of curiousity when you were vetting the deals how did you go about starting on verifying financials that were provided to you for each deal?

I am looking at a commercial lending deal and the numbers look solid based on the financials that were given to me. I have worked in small business lending myself in the past but this deal is over 2 million so was wondering on what loan programs and lenders anybody would recommend in Michigan as I was thinking of doing a 5 percent down HUD loan.

Greg Carrier I like your background. Looked in to tax liens awhile ago after reading the 16 percent solution but did not find anything quality to invest in as they were unbuildable lots and I found 16 percent was not factoring in lawyer fees which was at times more than the actual interest collected. PM me to discuss further.

Why not look elsewhere for a bank that will do a good rate and a 30 year conventional? I have two that do that with up to 10 properties, and rest is same as an owner occupied mortgage. I even have on that will do nonowner occupied at 15 percent.

Cody Bratschi Thank you for your service! Start by listening to ever Podcast like its Bigger Pockets University and treat it like class by studying and following up on what you learn. Best of all it costs you nothing!

Davon Lowery Hi Davon, This is going to be an ongoing struggle with contractors and I can tell you as a guy who used to install flooring in college is that your contractors that take a lower price are normally only willing to do so while they build their book of business but as they get better they only have two ways to make more money by charging people more or working more hours. This is going to be an ongoing fight for you so I would recommend getting a better deal on the house because eventually as you become more seasoned time is your biggest asset, not money. 6000 for a full replumb is low in my opinion. I would say if the home is down to the studs and completely open 7k is a best case scenario for a seasoned plumber. I had a guy do a job for that cheap before and he failed two inspections which cost me two weeks and he kept complaining he needed more money. If I paid 15 percent more I could have saved alot of time and money. Lastly, I would recommend finding a way to build value for your contractor if you want him to help you. For example, there is a very small building materials store that sold SnapTile for 1.50-2.50 a square foot which normally runs 5-7 dollars a square foot in my area my flooring guy was unaware of. I asked him how much he charged for tile labor and he said 6 dollars a square foot for flooring tile. So I explained to him how snap tile works and even told him how to sell it to his customer. He started installing the SnapTile which was less labor for him while also charging his other clients normal Home Depot pricing on the SnapTile he was getting for 2.50 -5.50 cheaper. I just helped this guy almost double his profit while decreasing his labor time. Now I got a guy that does 65 cents a square foot for flooring because he knows I do whatever I can to help him out. Doing jobs at rock bottom cost for investors is not what most contractors want to do so I'd recommend paying their price oh you're going to be constantly shopping contractors.

Brandon Velikaneye I used to work at Loopnet and I can say that the listings on there are difficult to work with because you are getting national exposure and many people use it because they cannot sell in their local market. I would mainly use it for research but unless you are trying to break into a market you are not familiar with that's probably not your best resource. Now that is not to say you cannot find deals on Loopnet and its a great resource to find boots on the ground. As for your local market I think the local REIA is going to a good place for you to start.