All Forum Posts by: James Kats

Sorry for the lateness of this, but just a reminder to anyone in the Sioux Falls region that we will be having our real estate meet up tonight at 6 pm at the Zeal Center on STI's campus.  Topic is evictions.  Hope to see a big crowd tonight!

I don’t think it was hard. My lawyer did it and he said that I didn’t even have to show up. 

If you can prove to the judge that the place is vacant, they will reduce the 180 days down to 60. The judge did that for me, I am just waiting the last couple of weeks to get in there. Won’t know if it is worth it until then. 

I bought one at the Sioux Falls auction back in January that was listed in the $75,000 range but the initial bid was $44,000 ish. My assumption is that they just wanted to get rid of it and be done with it. It does have a collapsing foundation and been vacant for several years so I can see why they  chose to fire sale it. You don’t know unless you are actually there at the auction though if they are going to do less than the foreclosure amount though. I hadn’t even considered buying the place before I showed up there and they said the opening bid. 

Hey Nicolas. There are several factors involved here. First, what is the quality of the project. If you are doing a $500,000 house, the finishes will need to be higher end and a kitchen by itself could be $20,000. The flips I have done have been houses that I buy for $30,000 - $45,000 and I do a complete gut job on for about $70,000. The finishes are not near as high end because the ARV from the comps don't support it. If I was just doing the cosmetics, I could easily do it in $20,000. Another factor is if you are including holding cost in the $20,000 or not. That can really add up if you are not quick with the job. Also, are you doing the work yourself or paying a contractor to do it. I saved a lot of money starting up a contractor business, but I am not near as fast as a full-time contractor.

@James Kats Forgot to mention that the time is 10 am to 11.

This Saturday we are having our monthly meet up at the Zeal Center on STI’s campus. This is a casual open discussion event where anyone can ask questions and anyone can answer them. It is a great time. Come on out!

Hey Jacob.  I have been investing in Sioux Falls for the last 6 years.  I do single family, small multifamily, and flipping.   I haven't worked with any of the local credit unions, but have heard from several people that Sioux Falls Federal Credit Union is a good one to work with and a few people say Black Hills Federal Credit Union is good.

Just a thought Nicole about South Dakota is that exterior work slows way down in winter.  If you are talking painting and roofing, that may not get done until April/May.  I quick did a roof, siding, and concrete work on a flip I am doing in November, and have just focused on the interior since then.

May is a long time to wait in a situation like this.  I have, once or twice, told a tenant that I would release them from the lease early if they felt it was a serious issue.  Then, you could get into the unit earlier to do your rehab work and, I assume, raise the rent to the next tenant.  That would be a win for you and possibly a win for the tenant if they want to leave anyway.