All Forum Posts by: James Barnhart

I got a HELOC on a paid for house in central Florida. It is from a Credit Union and they loaned 75% of the house value and charged me 5% APR, based on prime.

I used it to buy a SFR from a wholesaler for cash. Four months later, I flipped the house and paid off the HELOC, and will probably use it again.

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I don't see that your offers are "low ball".  They are strategically placed offers.  You offer a price based on your figures that are profitable on paper.   Making offers based just on the asking price is not a very good strategy.  

So, it would be wise to not ever use that term.

I work the area from Orlando to Daytona Beach and there is never a shortage of people wanting to rent.  There is a shortage of homes for rent.  So, what you were told is correct.

I screen all prospects and can always find a good one.  The price of properties is getting high and I'm not sure if it can go much higher.  That said, we are buying a duplex in Longwood from a wholesaler later today, if it looks good.

This ia another reason why I only rent month to month.  

I interviewed a woman that passed her screening and i asked her about hobbies, interests, etc.    She never said anything about a snake and I already said she could have her dog.  Afew days after she moved in, I saw her glass snake enclosure on the carport and asked if she had a snake.   She said yes.  So, i told her that either the snake goes, or she will go in 30 days..  She moved out a week later.

I always look on Craigslist first, then, check out the stores mentioned.  I have bought on CL, like new appliances that were in model homes, or in condos that were bought and the new owners wanted different brands installed.

I sometimes sell appliances on Craigslist that I take out of houses that I am flipping, to install better quality ones.  

One thing we always buy new is an above the range microwave, at about $110 to $120.  I replace the hoods with them.  It is a great upgrade that doesn't cost much, and tenants and buyers love that.  Usually, I install a dishwasher too, if the kitchen doesn't have one.

We buy a new washer and dryer for flips.  We get the basic types from Lowes or HD, at about $300 each.

I always leave the new tags hanging on the appliances, so the prospects can see that they will have new ones.

Our homes are looking great when done, but not high end, so we don't need to spend more.

Based on the history of collections, I would sure try to select a better qualified candidate.  The recommendation is not the only deciding factor for choosing your tenant.  I also interview them casually and observe their behavior and answers and their car.  Then, it's not a bad idea to drive by to where they live now, etc.

I buy mostly from Lowes.  I like the 10% discount, and returns are MUCH easier to do than with Home Depot.  My wife and I also check out Floors and Decors, and my GC sometimes gets me his prices on some things.  

The Habitat store has prices that are almost as high as new, such as doors.

Amazon is another great source for us.   We use it often.

We special ordered an 18" dishwasher from walmart.com.  It was very nice, and by far was the best price.

We have a great local old time hardware store that has stuff that no one else has.  They have 8,000 sq. ft. of items stuffed into in a 5,000 sq. ft. store.  And, they do plumbing service too.

I had a very similar situation recently.  I talked to my local independent agent for advice.  He was able to write a policy with a lower rated company with higher premiums.  They were the only company that would do it.  As soon as the roof was replaced, my agent switched me to my regular insurance company.

If you cannot do that, MAYBE you could pay for the roof and put a lein on the property, until you close.  But, I'm not an attorney, and don't know how to do that.

I would contact that owner and tell him that you are the neighbor and an investor.  Ask him if he knows anyone in your neighborhood that might be interested in selling their property.  (take the focus off of him)  If he is wanting to sell, he probably will let you know.  

The attorney is telling you the right way to sell it. Use the standard contract. that is approved by your local Realtors Assn. and the state Bar. I bet that is the 11 page contract. We always do that and we never have any issues. Be professional in your dealings. You may have to go over the contract paragraph by paragraph, with the buyers, but that's no big deal.