All Forum Posts by: Jake Lord

@Theresa Harris We are speaking with other contractors, but haven't yet gotten hard quotes. We may just try and act as our own GC on this one and higher out specialists. Not sure yet though.

@Bob Norton This one will rent at around $1,200/mo, maybe a tiny bit more. Why do you ask?

@Bruce C. Thanks for your input! To answer your question, we put $9,000 in escrow out of the $25,500 to purchase the house.

The house is about 1,400 sqft. $70K may be a bit high - we got a quote from the unlicensed contractor for about $40K. Assuming a licensed contractor will charge a lot more, however we still need to collect a few more quotes.

ALOT of work needs to be done - problems with foundation, electrical, plumbing, mold, etc. It's in rough shape. But yes, we can definitely help with the project. Problem is, the property is 3+ hours away from where we work/live so we can't be there every day.

We've considered backing out and losing the $9K, but might lean towards making the deal work depending on what strategies we can use.

@Clint Shelley Thanks for the feedback! I do think this is a good strategy, as we may be able to make a dollar or two by selling it off to a buyer who knows how to do the work themselves.

Hello all,

A business partner and I have found ourselves in a pickle with a single-family rehab project that we are looking to flip on the backend. This is a 3 bed 2 bath home that we found on Craigslist and purchased directly from an owner who was originally planning to flip the property himself.

The problem with this one is, the house is in really bad shape and needs much more work than we originally expected. Being first-time investors, we had connected with a contractor to do the work and came to find out on the day we got the contract that he was unlicensed and did not have insurance, etc.

Our inspection contingency period was 10 days with a 3-day contingency following receiving the inspection report. During that time, we continued to try and figure out how to make the deal work and not back out, so we overran the contingency.

Currently, we are in limbo waiting for the title search to come back before we close. However chances are, we will be contractly obligated to move forward with this one, so we need to make it work. It would be great to get everyone's opinion on how they would best go about making the most of this deal.

Here are the numbers for your reference:

- purchase price: $25,500

- estimated repair cost: $40-70K

- taxes: ~$4,250

- expenses: no legal fees (family is lawyer), inspection = $450, title search = $700; cash offer out of pocket, so no interest on a loan

- estimated ARV: ~$100k (conservatively high)

- down payment: $9,000 (yes, you read that right. why did we put $9,000 down? great question, who knows.)

Let me know if you'd like any more information. Thanks!

@Ryan Saulle I'm curious, why the move away from Staten Island?

Let's make this meetup happen. I am excited to meet some other Staten Island investors. What can I do to help move the ball forward?

That would be awesome! My business partner and I have been looking for one for a while now. Please let me know how I can help. Thanks Dave!

Hello everyone, and thank you in advance for your answers! My team and I were recently introduced to an auction site called hubzu.com. We found ourselves a property we would like to bid on, but we are not sure if this type of deal hunting is recommended for first time investors. For anyone that has used these types of sites in the past, are there any BEWARE pieces of advice you can provide and do you recommend this method of finding deals? Why or why not?