All Forum Posts by: Jason Richards

Hi Dan,

To my knowledge, all vinyl products have layers.  The top layer is a clear, protective layer, followed by a pattern layer, then a vinyl based core.  Vinyl generally looks better than linoleum and it is easier to work with (less rigid than linoleum).  

The most popular type of vinyl flooring is LVP - luxury vinyl plank (also referred to as LVT - luxury vinyl tile).  There are also a couple of variants of the plank style of vinyl flooring.  The pattern layer in planks is made to mimic the higher end look of wood or stone.

This product your 'warehouse' suggested may be a sheet rather than planks. Vinyl sheets generally have a repeating pattern that is more like the 'old fashioned' linoleum partners. There are products available in sheets that are made to look like wood or stone as well, but in my opinion they generally don't look as nice.  Laying down a vinyl floor in planks makes it appear more like the wood or stone product it is intended to mimic.  

 I personally prefer the tiles/planks over the sheets - especially in rental properties.  On top of looking better, they are easier to repair.  While vinyl is rather durable, renters tend to damage the flooring.  It's just a reality.  Repairing a vinyl plank floor is much easier than repairing a vinyl sheet in my opinion.  It's about as simple as pulling up the damaged plank and laying down a new one, in most cases.  With sheets, you usually end up having to remove a much larger portion of the floor to repair it in order to avoid making it obvious an area was cut out and replaced.  

That said, sheets do have a potential advantage over planks.  They can be easier (cheaper) to install.  Additionally, planks can move around in high traffic areas if they are not properly set.  So can sheets, but they are less likely to move than planks. 

@Andrew johnson

@Andrew Johnson, I agree with your philosophy.  Onsite presence is a key component of any successful flip project.  Unless you have a team you can trust (that are either owners or trusted employees) to regularly visit the project site and accurately report back on progress/problems, flipping out of state is generally a disaster!  Out of state investing works better in the 'long term' model, provided you hire state licensed vendors to manage your rental properties and vet them regularly. 

Congrats, @John Clay!  Yes, Pueblo is on fire right now!  Lead Funding has been bullish on the Pueblo market for a few years now.  Only recently have the prices begun to rise at rates more comparable to primary markets.  

If ever you're interested in exploring your options for funding more deals in Pueblo, shoot me a message.  We would love to work with you on your next project!  

Investment Info:

Condo buy & hold investment in Denver.

Purchase price: $57,000
Cash invested: $40,000

2/2 condo unit in south denver

What made you interested in investing in this type of deal?

long term cash flows

Good advice, Nghi.  I see too many investors have unrealistic expectations on the project timeline going into the deal.  This causes a near sited approach to financing and budgeting the project.  It ends up costing more money in loan extension fees, lost time while searching for additional capital (in the case where the investor overextends his/herself), and just plain avoidable stress.  

Adam,

Your options depend in part on the current owner's situation.  If the home is currently financed with a hard money loan, odds are the seller doesn't have much time to sell.  In that case, your only option is probably to take out a hard money loan yourself.  If the seller has more time, consider putting a 2nd loan against the property and helping him get the work done prior to purchase so you can get the bank financing you are looking for.  There are risks involved with this creative option though.  It's always good to consult with an attorney and/or other real estate professionals before proceeding.  

If by some chance you happen to be purchasing this as your primary residence, there may be some conventional lending options available to you that allow you purchase and fix up the property.  

I agree with @Wes Johnson and @Brian Pulaski.  If the home finishes are in decent shape, your best bet is to find a retail owner occupied buyer, or an rental investor looking for a good deal (assuming rents are strong enough in the area).  This is a grossly losing deal for a flip investor.  

Good advice, @Cassi Justiz.  Hard Money lending comes at a higher cost.  This is driven by greater risk factors and higher cost of capital we pay compared to banks.  Our business is primarily driven by word of mouth.  Shop around, but ALWAYS ask fellow investors what experiences and opinions they have about the lender.