All Forum Posts by: Jon Mbu

Thanks for all of the invaluable advice.  We are checking references and were able to get the contractor to come down on the upfront downpayment to 17%.  He insists on paying for materials because he doesn't want to disclose the wholesale pricing and sources he used so we won't be able to buy the materials ourselves or accompany him with purchasing the materials. So when we receive invoices for each draw it will just show is flat rate.  Is this common practice?

Our General Contractor is requesting a 28% downpayment upon signing the contract for rehab work, prior to any work being started and he claims that he has been doing this for decades and never had issues with that being a part of the contract.  That seems rather high.  What amount (if any) should typically be required from a General Contractor upfront?  If you are a rehabber, what was the most you had to pay upfront when a GC requires a deposit?

Thank you all for your feedback, I appreciate the vital information given, I decided to put the $2,500 towards a direct mail campaign, as I continue to do more research and look for properties.

Hello everyone,

I'm a newbie here, in fact this is my first post too. For my first real estate investment I've decided to wholesale my first property, and after searching for properties in my desired area, I located a few but they're all on Auction.com, which brings me to my questions.

First question, Auction.com has a $2,500 deposit to be made before bidding, is that bid refundable if I'm not the winning bidder, and if I am the winning bidder, does it go towards to full amount owed?

Second question, if after winning the bid, there are occupants occupying the home, how do I go about getting them out? Is it safe to buy a home knowing people are occupying it still or is that something to stay away from?