All Forum Posts by: Clayton Plank

@Isaac Huerta I agree with coming to terms up front. I know that my private and hard money lenders will not loan on owner occupied. So are you going to pay rent to your money partner? Are you going to manage the property for them for a fee or for your rent? The typical managing fee around me is 8-10%. That means at $1000 a unit you would have to manage 10 other units for you to break even on the money your money partner is not getting for the unit you are living in. I'm just not seeing how it is benefiting your money partner. I'm not saying that it can't be done as everyday I learn something new in real estate or a different way to do things. 

@Tom Chen are you looking for this as your primary or to flip? I would work with whoever has a good deal. Everyone you talk to should know you are investing in the real estate world and what you are looking for. You never know where a deal may come from. I bought my first house from my neighbor over "fence talk". 

@Isaac Huerta I think you may have a hard time finding a money lender for a home you are going to occupy. You are turning their investment into your primary residence and here in Florida that would be a court nightmare for your investor if things feel apart.

@Tom Chen I have done one Homestyle loan (Similar to 203k). It was very paper intensive. The qualifications were similar to any FHA loan. Once the loan was closed the money draws to contractors were very smooth.

@Account Closed haha. I feel like you started your own "fire round".

@Ryan Luby

@Ryan Luby do you have a price on this property? Is it listed for sale? Have you talked with the owner? You don't know what kind of deal he may be up for. Maybe the owner is highly motivated and will partner with you since he is absentee. Never hurts to ask. Maybe you could look at finding a partner with the money and you can work out a deal where you would manage the property for a percentage.

@Kevin Branin I would look at securing the money first. If you put that earnest money down and the hard money lender doesn't see the same numbers as you and won't loan then you will be out that money. Reasonable profit is for you to determine sir. In my first deal my reasonable profit was not to be in the red. Haha

@Account Closed since you are looking to house hack try getting pre approved at a bank. This will let you know what your working with funds wise. Then go find a property that would fit in that range. I prefer to find a multifamily that I could afford on my own without any other units rented. That way if I have all vacancies I know that I can afford to pay the mortgage on my own.

@Michael Eng turnkey rentals are good for out of state beginners. I would do my due diligence on them though. I have seen some that were advertised with tenants in place at a high rent so the numbers looked good and as soon as the property was bought the tenant moved out several months later and they were stuck with a property that would not rent at those numbers again.

@Kofi Boateng ARV - (Repairs) - (Holding Costs) - (Purchase-Sales costs) - (Wanted Profit) = Offer

@Julia Geiger We have some others through out the month. (Jaxreia.org)

@Joseph F. this would be a very big project and I would not suggest it with out maybe partnering with some one that was very experienced. House fires can damage a lot and you would have to have a engineer look at this project to see just how far the structural damage has gone.

As far as is it worth repairing. That is where you bring your comps, the engineers requests, estimates on repair, and your holding cost numbers together and see if the deal works. Real estate is all about numbers. If the numbers don't work than no its not worth it. Without seeing the house my self and having the other numbers it would be hard to say.

As far as building new that is a good idea but it all depends on comps and the neighborhood. If the comps support a $1.1m-1.8m. home then that would be the range to be in. There are a lot of factors that play into this though. Is this an older neighborhood that is historic? If so the city may not allow for you to just tear it down and build new. What would be the cost to tear it down and clear the lot to build new?

Coming in with no experience and attempting a job this size would be hard. There are many factors that could go wrong and leave you stuck with a costly pile of nothing.

Yes you would need to get estimates first for both directions so you could run your numbers and see if the deal works or not. When you have these numbers then you can sit down and decide if that $550k is too much or if its a good deal. Without those numbers it like trying to shoot a target with a blindfold on.

Hope this helps, Clayton

@Josh Joly move your mouse over there name and a box will come up that says connect. Click connect.

@Jena Richards short sales in themselves can be a long and painful process. Are these REO properties listed as the bank is selling the short sale or someone else is advertising them this way? Typically if the property is REO the bank has already taken it back and there is no short sale. I would try and connect with a property management or investor that works in the area you are looking for and see if they could give you a heads up on the actual process of eviction in that area. The REO occupied homes can he tricky as the bank has taken them back but the law requires them to honor the lease that was set in place prior to the foreclosure.

These items should have been addressed before you moved in. If you signed off on the unit before moving in that says you agreed to pay rent in its condition. I understand about the heat as that is required by law. Its had though if you agree to rent it in its current condition and then move in and want the landlord to start putting more money into it because you are not happy with it.