All Forum Posts by: Dalton Dellinger

I live in Vincennes. Is there a Terre Haute group? 

Hello BP,

I am looking to purchase a rental in my town and don't have the capital available right now to give a down payment for the property. Setting up bank financing won't be a problem. Has anyone ever used a hard money loan as a down payment for a property? Or are there any lenders on here that would work with me? Thanks in advance.

I have a nephew in high school who would jump at the idea of making $20 an hour by following a checklist. I don't think I'm being ridiculous. There's no reason to be rude. 

This would not be a licensed professional. My thoughts were a young college kid that follows a checklist that I give them. Basically they do a video walkthrough, count windows and doors that need replaced, measure linear feet of cabinets. I would train them on a few of them before I can trust them to do it on their own. 

The main purpose of this is to run my numbers on a flip and not have to be constrained by schedules lining up with me and my realtor.

@Aaron Van Curen

I suppose I should clarify. The purpose of the inspection would be to look at properties for acquisition. Once I have the data, I would make the decision whether or not to submit an offer. Pretty much the rest of the closing process could then be done remotely.

Yes I was thinking about $20-$50 per site. For probably less than an hour of work, that is good money around here.

Hello BP!

I work full-time and recently have had personal obligations that have come up that have put a hold and time-constraint on my REI processes. I have been doing some thinking and right now, the largest bottleneck in my business is me.

I invest in a small city in Southern Indiana that is approximately 45 minutes away from me (one way) and in a different time zone (they are an hour ahead). The town has a decent amount of inventory where I know deals could be made, however I can not be there to physically look at all of them. I have done basic analyses using numbers from flips we've done in the past, however I need to see the house and it's mechanicals to be more accurate.

I had one thought: put a post on Facebook to ask if anyone would be interested in being a house-walker for me. Essentially, I would give them a checklist I have already created, and train them what to look for when viewing a property on my behalf. They would take pictures of the house and walkthrough videos as well as gather the serial numbers of the AC, WH, and furnace. They would measure floor square footages so I would know kitchen is 150 sq ft, bedrooms are a total of 400 sq ft, etc. 

I have recently reread David Greene's "Long-Distance Real Estate Investing" and this is similar to what his contractors and/or agents do (minus the checklist). Does this sound like a viable idea? What have any of you done in your businesses to achieve the same result I'm trying to achieve?

Thanks,

 I structured something similar to this on a current flip. 

My investment company found the deal, got it under contract, found the financing for it, and closed on the house. Right around this time, we started a construction company. In that construction company, I am 50-50 owners with my partner. My investment company hired my construction company to perform the work on the house. I verbally told my partner that I would split the profits for the flip with him 60-40 (my company receiving 60% of the profit) in exchange for him managing the entire project. He is responsible for communicating and coordinating with our subcontractors as well as our own workers. He makes sure the work is getting done per the scope and within the budget. Basically, he is acting as GC. 

If I were to go back and do it over again, I would just add a 20% GC fee to the labor costs.

The way we did it is somewhat complicated, but you can ignore the construction company part to apply it to your situation. If you have any questions you can PM and I'll try to explain it better.

Congrats on the house hack! I've done it for over 2 years now and love it. My wife: not so much. We bought it with an FHA loan in my personal name as well. We live in half a duplex so we can deduct half of the building costs as rental expenses. That also means half depreciation. If any maintenance issues happen in the unit we're living in, they are not technically tax deductible. But the other unit is. If any maintenance item to a common area is required, we generally have treated the entire expense as tax deductible.

@Jon Hill I love the topic of goal setting! Being newly married (our 1 year was on December 15th) I can see the importance of carving out time to work on the relationship. Looking back over 2019, I wish I would have done that; whether it is a date night at a restaurant, a picnic in a local park, a road trip, etc.

My goals for 2020 are:

1. Flip 3 houses with a minimum of $15,000 profit each

2. Build back up my emergency fund ($2000)

3. Pay off all credit card debt

4. Pay off both my wife's and my car.

5. Build relationships with at least 5 private money partners to be ready for whatever the upcoming election does or doesn't do to my local market!

6. Get back down to 10% body fat. I completely let myself go after bulking last winter.

7. This should be number 1 really, but I like the idea of a weekly or biweekly date night as well.