All Forum Posts by: Jiri B.

@Luke Jones what was your quote? The prices are constantly going up. It's also very specific to the size and rating to the system. I prefer to work with local family owned business since that is what i do too. Even though i might pay a bit more. I prefer to support those individuals over bigger corporations as they usually can't afford to spend a lot for marketing and i feel like i also support the local community that way..

I typically get 2 - 2.5 ton evaporator, 14 seer with furnace for about 6k. If you go up in size, it usually adds few hundreds of dollars, and if you get higher seer rating, that can go 1k or more up easily. Just to give you an idea of my experience.

@Account Closed if you are already working with a realtor, ask them to recommend you a real estate attorney. You can also just google those and get a list etc if you can't get anyone to recommend you any.

You should also consult with a tax person so you better understand how different entities can have impact on your taxes or the complexity of them.

There are many resource here on this forum as well as just by searching on the google for those type of questions. I would recommend do your own research first so you at least know the basics and know what specific questions to ask. It can get quite complex.

From experience (not giving you any legal advice), most new investor don't even form LLC to start with. They just purchase their first property in their name. It's typically cheaper and you will have more financing options, however if you worry about liability, then LLC is a good start.

As for the foreclosures, there is really not that much difference to you as an investor then any other type of sale.. Just make sure the numbers works. Some foreclosures can be good deals, others not really. 

One thing to keep in mind is that bank will typically not make any repairs at all. So making sure you can finance the property in that condition is important.

I like to look at all the land / properties on the county gis website. They can provide really good info with all the different overlays, etc.

It also gives you a quick glimpse into the current or proposed zoning etc. Just because there is a major development nearby, does not mean this exact zoning would apply to this lot. It might not be zoned for dense development and rezoning requests can take over a year so it might just be too much work for a little profit for a large developer.

Lots of information can be fund just by accessing public records so they might be able to pull all the details about this deal / land even without you knowing about it.

You can also ask them why they are backing out. To me, it would be a polite thing for them to answer..

I honestly don't know if a large developer would purchase from a wholesaler or just buy a land directly from the owner. That scenario just does not work for me. Typically for wholesaler, you might have the property / land under contract for 4-8 weeks maybe? While new development due diligence might easily take 6 months +  so you would likely loose the contract before they would be able to complete their DD on the purchase. That would probably be mine major issues with this type of deal.

This sounds like the price is too high or they have found a better deals after closer look.

It really depends on many factors, like what is the exact location, what is the shape of the lot, how is subdivided,  how is it accessed, how far are the closes utilities, are those private / public, is there any public access, are the access sufficient or do you have to build a new roads etc. 

If the lot is in highly populated area, it might be a great deal, but if its in a rural area, it might just be too much effort for a large builder to just get 5 lots. You would typically see new developments in more rural area with 200+ lots where there are higher margins and all the extra civil engineering work / infrastructure is worth it.

I would probably try to find a smaller builder.

@Kristen Treffinger i would say talk to few hard money lenders and see what they can offer for you. Just because it's hard money, it does not mean you don't need any of your own cash. You will typically need about 1/3 of the cost upfront in your own cash. They will also charge you 11-13% interest and 3-5% origination fee.

I think it's worth it if you can flip the property fast and make at least 30% profit. Otherwise it can get very risky if you have delays or things don't go so well as you have planned. 

Really just depends on what type of property you are flipping, what the price is, what your situation is and how much you know  and how much time you have. With such a high interest and fees, there is less margin for errors.

I kind of get why new investors look for cheaper properties in smaller cities / towns but you also need to keep in mind, that yes, you can get property in Greensboro for half the price then in Raleigh, but also your appreciation will be much less. Eg. Greensboro market went up about 35% since 2000, while Raleigh market is up over 70% (Based on Trualia market trends stats)

I don't think this makes a big difference for fix and flip, but if you are thinking about holding your investment property for 10-20+ years as rental, it might make a huge difference for your investments.

@Ben Le Fort I would agree with the general theme of those answers. Probably not a good rental. Would sell it.

Assuming your home appreciated in value over the years, and sounds like you have lived there for a while, by selling it, you shouldn't have to pay capital gains or at least here in USA so you would make 200k tax fee money. Then use it to purchase 3 or 4 rental properties (not super nice, just OK) and make $300/mo cashflow on each of them..

Doing it this way, you can get 4 x higher cash flow and 2 x the asset value - instead of owning rental real estate worth of 500k, you should have it worth of 1MM. (assuming 4 properties, 50k down payment each, 80% LTV)

@Brielle Ford The question is, who are you representing? Who is your client?

If you don't have any agency agreement with the seller, then you can just represent the buyer. You can also represent both in dual agency as long as both parties agree with that and you have disclosed your representations correctly in writing to all parties.

If you already approached the seller, as a licensed real estate broker in NC you are required to provide them with the Working with a real estate agent brochure so they understand the process and the representation.

It sounds like that you have already negotiated something with the seller and potentially learned personal / financial information about the seller. So if you have not done the proper disclosures and then bring your client, you might get into legal trouble and potentially getting sued by the seller for undisclosed agency. 

It is somewhat disadvantage to be a licensed real estate broker as you are held to a higher standard and you have to disclose items you would normally not have to do without license.

Whether you list the property on the MSL or not, that is up to the seller. It's not required by any law to list your house anywhere in order to sell it. 

@Brock W. That's a great question! I was actually wondering the same. In some cases i have seen rental prices going up after floods as many units are not livable or need repairs so if you end up with a property that was not damaged, you might see some short term higher demand and price increase. I think logically, if the inventory goes down (due the the storm damage, etc) the prices will go up for the reset of the properties that were not effected in that area.. I would think, on the other hand, those effected properties will have a signification price / value drop so you might be able to get some from those who just don't want to deal with that or just walk away.

I'm a long term investor (10+ years) so i would worry about global warming, sea level rising, stronger storms and more flooding so i would probably avoid areas that was historically effected or might be effected in the near future. I don't even purchase properties near rivers, faraway from 500 year flood zones. Since in the past 10 years, you see those type of storms / flooding more and more.

I would also worry about the insurance price or having to need a flood insurance or even not begin able to insure the property at all.

Bottom line, costal living is still a dream for lots of people and if you are willing to take on the risk, then go for it. I'm not that type of person.

@Stan C. It's a very specific request. What i used to do to find services like that was to just find those people on google or google maps and give them a try (https://goo.gl/maps/JhUyEFKVXkH2) unless you can get a good recommendation.

Typically, i would go over 2 or 3 different ones to see how well they communicate, how reliable are and how much they charge etc. Then i just stick with the one i liked.

Even if you get a specific recommendation, it does not guarantee they will work well with you / or for you. Everyone has different expectations.

I rather pay a little more and have someone reliable. At the end of the day, the time, stress etc it saves me its worth it.

Also for handyman work, they will typically charge you a minimum price, like $200 for a call so its good to have a list of multiple items then just calling them every time something small pops up.