All Forum Posts by: John Shortridge

Hi there I'm wondering if anybody has any opinion on which entity would be best for a partnership with the purpose of acquiring holding long-term rentals? The ownership would not be 50-50. One owner would be fronting most of the cash (for down payment and repairs), the second would be minimal cash while providing the borrowing power (a good debt to income ratio) for getting a conventional loan for the rentals. Multi owner LLC? LLP? C or S corp? Thank you in advance

I have been doing this for 2 years now. My first was/is a rental that I rent to myself and three others. I have flipped 3 straight away since and I would like to get another rental, however it would likely put me to a stand still /: I would want to be in at least 30/35% and that would effectively tie up all my cash. I think though I'll have better borrowing power next year so my plan has been to build cash thru flipping and when ever I get enough cash to carry another rental with an easy note I'll cash in and hopefully repeat the whole process. Good luck! 

Thanks for the advice.

So the owner was the GC... so no contract there. There are contracts for the trades, electrical, plumbing, and mechanical. Both the mechanical and plumbing seem to have less left on the contract than what would be required to finish the work (for instance the HVAC guy has done everything but put in the new package unit outside which is about a 5k job, but only 3.5k is left on the contract) but I, nor the owner who has been very cooperative, have been able to get in touch with the electrician, and there is a good bit of work yet to do.

When you say $ held in escrow post closing to cover leins, do you mean $ out of the seller's pocket/sales proceeds, or out of my pocket? I think you mean the seller but let me know. Thanks!

Hi everyone, I'm looking at a property which was previously owned by an investor who suddenly passed away. His kids are liquidating his properties. This property still has valid permits, which have all passed the rough in/framing inspections. I've contacted one of the subs and  they are fine with just finishing out the contract, but the two others are MIA. 

Anyone dealt with this before? Should I worry about a potential mechanical Lein on the property? Or worse, if I wanted to use a different contractor to finish it out, would I need to pull brand new permits and go thru a rough in inspection again? Thanks for your help.

Hey, does anyone have any thoughts on whether or not to obtain a business license for your rental and or flipping activities as a real estate investor? To be clear, I'm talking about a business license, not a real estate license which is covered on many posts here on BP. Thanks for your replies!

j

@Pavs Doychev

Great story. I think we are all impressed by your success. 

So, when you said you don't know about financing, does this mean you purchased all theses deals & renovations with cash? 

Also I know a few other members have mentioned this... how did you go about managing the rehabs while working full time? That is very impressive. You said the one you bought in March 2014 is still being work on?

Hey everyone!

I thought I would post an introductory thread on the Nashville forum to see who else is out there. I'm relatively new to REI. I'm suppose to close on my third deal tomorrow which is up in Hendersonville. It's a flip, as was my last one, and my first deal is my home which we renovated and rent out two bedrooms to pay the mortgage. All in Hendersonville.

I would love to hear from other Nashville investors on where you are buying and what kind of deals you are finding!

Cheers!

Hi Everyone!

I just signed the counter offer for my 3rd deal and it has already turned out to be very interesting with some cool twists and turns so I figured I would start a deal diary thread about it!

This property came on the market about 6 weeks ago and like most REOs in Hendersonville, which there are only a few, it was under contract immediately. I walked in the house when it was first listed, got about 10 steps in before I realized the carpet was infested with fleas and so were my bare legs (never wearing shorts again to look at a foreclosure!). So I planned to return the next day better prepared but checked it that morning and boom - PENDING. So I moved on.

I checked the listing the following week and to my surprise it was listed again as "Active." I called the listing agent to find out what was up. She said yes they had a contract for about a day or two but it fell through and is listed again. So, I went by, prepared for fleas and all, only to find that at some point someone had removed all the fleas and cleaned the carpets (which were still completely disgusting and covered in I'm assuming cat feces). Long story short, put an offer in... waited... nothing... PENDING. So I moved on.

Fast forward 4 weeks, I would keep asking my agent, "Did that house close?"

"No." "Not yet."

Interesting... In the mean time I had two other offers on different properties which were not accepted so after 4 weeks without closing I decided to call the listing agent. This was Monday. She told me, it is supposed to close tomorrow (Tuesday) but she is pretty confident it will fall though and will likely go back on the market next week. She also mentioned that their contract had the buyer using the seller closing agent and that they already had the title and were ready to close. She said if I put in another offer to basically pick up on their closing which won't happen I would have a good chance.

I immediately went back to the property, re-evaluated my SOW and budget and put in another, higher offer than my original, all cash, no contingencies. Received a counter offer yesterday, signed, and dropped off my EMD this morning. Boom. Now as to whether or not we will close next week... that will be on the next entry in the diary!

Moral of the story - Follow up with the deals you miss out on! And don't rely on your agent to be the middle man on things that you can easily do yourself. Call the listing agent and let your agent do the things that only he/she can do!

More to come!

Johnny

Hey everyone.

Has anyone ever had to remediate mold on floor joists in a crawl space? I know where the moisture is coming from and how much it will be to fix that, but I'm trying to put an offer in on this tomorrow and I can't get anyone to come out for a few days.

I'm curious if anyone has had to deal with before and how they took care of it. Of course, I could put in a contingency offer with the plan to work it out after I have a contract, however, the REO market in Nashville is crazy I know someone is gonna come by without doing their due diligence and buy without looking in the crawl.

Just curious if anyone can tell me realistically how cheaply I can take care of this. I certainly understand mold is serious but I don't buy into the hype and scare about mold and know that the house does not need to be bulldozed and the rubble set on fire. Essentially, I need it to pass inspection when I turn around to sell in a few months.

Thanks!