All Forum Posts by: Account Closed

Hello everyone,

I have been tinkering around my SFR, doing most of the repairs on my own. However, I would like to hire a handyman to help me replace my porch roof. I'm trying to make a bullet proof Independent Contractor Agreement and SOW to ensure the process goes smoothly for follow on jobs. I know, I should hire out a contractor, but I have done some roofing work before and am really trying to understand how to manage people by making thorough SOWs.

Therefore, what do you use for your Agreements and SOWs.  I found a couple online templates, however they don't seem too detailed.  I will be providing all materials, e.g. underlayment, shingles, nails, etc., the dumpster and pulling the permit. 

Thanks,

Joe

Hi everyone,

I currently am house hacking, however, I am moving out of town for the summer and am thinking about buying another property on my way back in.  Since I am house hacking,  it is very easy for me to "micromanage" the tenants, e.g. doing dishes, taking out trash, not leaving the place a mess.  Although, I am wondering if anyone has ever made a list of daily, weekly, and annual tasks that should / must be done by tenants in order to keep reasonable cleanliness standards.  I talked to some friends about this and they said "I'd be pissed if I had rules at a place I was paying rent."

If you guys do this, I was wondering how I should build it into the lease and or put signs up throughout the house.

Thanks!

Joe

Hey guy thanks for all the advice. I've been reaching out to local investors and wholesalers who, to my surprise, are incredibly approachable and willing to share their tips and tricks about what to do and what not to do. I think I should stop listening to Wholesaling Inc. because it's so tempting with all these stories I hear. I know a decent amount from J Scott's books (I read both versions of estimating rehab costs), but it's slightly intimidating to approach a random house. I'm not sure where to begin. I'm guessing as time progresses and the more home owners you come into contact with, the more you perfect your pitch? The thing about seeking a mentor is that there's not much I can offer them and I honestly feel slightly guilty for asking them to help me out. That's why I've been leaning towards the course. There's an REIA meeting tonight so I'm going to talk it over to some investors to see what they'll say. The first guy I met at REIA wouldn't stop talking about how Wholesaling Inc helped him get his first wholesale for $10k. Decisions, decisions.

I didn't know the pornstar part. I just did it because it meant pretty woman in italian. At least LLC's are free for vets

Thanks for all the feedback! From what it seems like I should just suck up the 5k and pay for the class. I'm getting paid to go to school anyway and all my friends are in debt so might as well.  Plus I feel like it's very hard to get accurate information from wholesaling.  It seems like there's a reason people make you pay for it because it's very systematic.

Hi everyone,

I was looking at potentially doing the wholesaling inc. course, but after doing some research everyone says you shouldn't pay for anything because there's enough info out there. I'm looking at starting to direct mail customers via listsource. I have my list of 400 people generated and was wondering if I could get feedback on what I have so far. I contacted a prominent real estate investor in my area who happens to live a couple houses down from me. He offered me to give him a deal in return for getting experience going through the process, which I think is definitely worth it. I created a legal fictitious name and LLC for direct mail marketing in order to prevent myself from potential legal mishaps while also presenting myself as a professional to potential motivated sellers (even though I'm just a college student). My plan was to:

Send letters in envelopes with my company's name on it and a handwritten, copied, letter about my situation and how I would like to buy their house to help them, i.e.

About: I am a Marine Corps veteran and a student at the University of Pittsburgh studying industrial engineering. I am looking to help home owners in the Pittsburgh area by offering them cash for their home in order to alleviate current personal issues.  I have teamed with local investors that will allow the closing process to happen quick and straightforward.  It is my goal to make this transaction beneficial to all of us.

Very Respectfully,

Joseph

I know this is long, but writing "WE BUY HOUSES. CLOSE FAST CASH $$$$" Seems like a bunch of B.S. I'm thinking if I got a letter like this, I'd probably be less inclined throw it away.  Also the logo, envelope, and cover letters look very professional if that helps.

Any feedback would be great or I'll just conform to wholesaling inc. haha. (jk)

@Zack Karp

Wow Zack, that's some pretty awesome info. I think I'm going renovate it ASAP.  Now to find a good contractor.

Thanks a ton!

@Zack Karp

I didn't even think about using the VA loan to 100% refinance the house. That's a great idea! So just to clarify if manage to bump the ARV to $130k, I can cash-out refinance the difference between my current loan and VA loan to gain $40k to use for another loan on another house?

The more I learn about refinancing, the more I realize how much I didn't know about it.

Hi everyone,

So I bought a 4 bed 2 bath house in June 2018, now it's December 2018 in the city of Pittsburgh, Pennsylvania (Mt. Washington). The place isn't in that bad of shape moving in so I decided to turn key the property because I'm a student studying Mechanical Engineering which heavily prevents me from being able to deal with the house.

I painted the walls in all the bedrooms and got tenants (friends from HS) to move in in August 2018. I paid $90k for the house,mortgage: $646 / month, utilities: ~$350-$400 / month, rent: $1650 / month, and only have 3.5% of the mortgage paid off.I'm well above the 1% rule even WITH me living in the largest bedroom (should've took the smallest bedroom).

With that being said, I'm wondering if I should end the lease in January and start the BRRRR (mainly the RRR part). I need to fix my roof (lifted shingles) so I thought might as well renovate the whole thing. The comps in the area for a decent 1700 sqft, 4 bed 2 bath are anywhere from $130k-$180k. I would like to:

Replace the roof: ~$6k-$7k

Replace drop ceiling with drywall to increase ceiling height ~1-2 feet on first and second floor: ~$5k

Replace panel with drywall: ~$5k

Remove Wall: ?

Rewire electrical that was above drop ceiling: ?

I am eligible through the city of Pittsburgh's Urban Redevelopment Program for a $20k, 20 year, 0% interest loan and possibly an extra $10k for utilities due to low income. So I figure, might as well use it before I'm not eligible (hopefully soon). If not, I can use a conventional loan. I'm also a Marine Corps veteran if anyone knows any VA loans I may be eligible for.

The dilemma, however, is that I'm not sure if I'll be able to refinance the house, given that I own 3.5% of the property. I'm wondering should I use a private money lender to pay off my mortgage so I 100% own the house, begin the renovations, rent it to tenants at approximately $1950 / month, then refinance my house?

I am very apprehensive about refinancing my house and it seems that not too many people talk about the minute details of it. I've asked several bankers, realtors, friends and family about my situation and I can't seem to get a clear answer. That's why I've come here. Hopefully you guys can help.

Attached are some of the pictures from my place.

Paneling and Wall to be removed on right that leads to living room.

Living room

Kitchen

Above the drop ceiling in one of the bedrooms (needs to be rotated right):

Hi everyone,

So I bought a 4 bed 2 bath house in June 2018, now it's December 2018 in the city of Pittsburgh, Pennsylvania (Mt. Washington). The place isn't in that bad of shape moving in so I decided to turn key the property because I'm a student studying Mechanical Engineering which heavily prevents me from being able to deal with the house. 

I painted the walls in all the bedrooms and got tenants (friends from HS) to move in in August 2018.  I paid $90k for the house,mortgage: $646 / month, utilities: ~$350-$400 / month,  rent: $1650 / month, and only have 3.5% of the mortgage paid off.I'm well above the 1% rule even WITH me living in the largest bedroom (should've took the smallest bedroom).  

With that being said, I'm wondering if I should end the lease in January and start the BRRRR (mainly the RRR part). I need to fix my roof (lifted shingles) so I thought might as well renovate the whole thing. The comps in the area for a decent 1700 sqft, 4 bed 2 bath are anywhere from $130k-$180k. I would like to:

Replace the roof: ~$6k-$7k

Replace drop ceiling with drywall to increase ceiling height ~1-2 feet on first and second floor: ~$5k

Replace panel with drywall: ~$5k

Remove Wall: ?

Rewire electrical that was above drop ceiling: ?

I am eligible through the city of Pittsburgh's Urban Redevelopment Program for a $20k, 20 year, 0% interest loan and possibly an extra $10k for utilities due to low income. So I figure, might as well use it before I'm not eligible (hopefully soon). If not, I can use a conventional loan. I'm also a Marine Corps veteran if anyone knows any VA loans I may be eligible for.

The dilemma, however, is that I'm not sure if I'll be able to refinance the house, given that I own 3.5% of the property.  I'm wondering should I use a private money lender to pay off my mortgage so I 100% own the house, begin the renovations, rent it to tenants at approximately $1950 / month, then refinance my house?

I am very apprehensive about refinancing my house and it seems that not too many people talk about the minute details of it.  I've asked several bankers, realtors, friends and family about my situation and I can't seem to get a clear answer.  That's why I've come here.  Hopefully you guys can help.

Attached are some of the pictures from my place.

Paneling and Wall to be removed on right that leads to living room.

Living room

Kitchen

Above the drop ceiling in one of the bedrooms (needs to be rotated right):