All Forum Posts by: Justin Sullivan

I would def make sure the tenants are aware of the potential transfer of ownership and know not to pay their current landlord on or before the 1st. This way if you do close on the 31st you can contact the tenants have them sign an addendum to their lease with your name on it and the updated payment options. At that point in time you can also have them pay you. I closed on a property at the end of the month and lost the first month rent because I wasn't proactive about this, on one of my rentals I purchased.

Just be proactive and maybe have your agent add an addendum to your contract which states seller is responsible for ensuring the tenants don't pay him if the property closes as scheduled. They may kick back what is it doesn't. At which point he's still only afforded the days of ownership.

You could also just have the tenants pay him and have that month rent added to the CD. So instead of you having to hustle around getting your money they just pay him as usually and if they pay $2k then you get an extra $2k at closing.

Be sure to ask about the security deposit accounts and make sure you get that money on the CD as well. 
 

I am not an Attonrey and also in a different state. That is just my guess on what should be done.

good luck and congrats on your first investment!!
 

If you can keep all your expenses around $7-8k a month. With rents being at 10k and expenses at 7-8k your true cash flow would be 2-3k. since this deal is finished already and you aren't doing much rehab I wouldn't expect to get a home run on this one. Be sure to account for all expensed ike Michael just said. You'll also want good reserve account. Expense are Mortgage, Taxes, Insurance, Utilities, Water/Sewer, Snow Removal, Landscaping, Maintainece, Cap Ex. So Maintenance and Cap Ex are basically going to sit in an account. I would suggest you still keep them there. Things like the roof windows and renovating new units after tenants leave. Also sinks clogs toilets clog so you will need money for those types of items. Some investors do Percentage others may do a straight cost per door. Whatever works for you just make sure you have extra money for items like that. I can't speak on if it's a good deal or not because that is relative to the person. Some investors may like this others may not. Some investors keep $250 for cap ex while others keep $50. you have to find what works for you. I would suggest being more conservative at least in the beginning so you don't get caught down the road!

I am not a banker, I do know that it is much easier to send money to someone using your same bank as opposed to using a different bank. So that would make sense that one is a bank transfer and the other a wire transfer. I know when I do transfer with persons at my same bank they clear faster or immediately as opposed to other banks

 So we can figure its 300 linear feet of base and 300 linear feet of Quarter Round then. For base a good rule of thumb for an unlicensed/unisured guy is $1-2/foot. Obviously is the house is larger then you can bring it close to $1 but for a smaller house like this one probably closer to $2 should suffice. High end trim carpenters are going to charge over $4/foot for base alone. For the Quarter Round you can charge like $0.50-$1/ft. Honestly QuarterRound is pretty easy. It should only take 5-6 hours for that type of size even if there is tons of cuts. IF he does Quarter Round correctly he'll have a hand held miter cutter which makes that super fast. Taking Quarter Round to a miter saw is not the most efficient way.

None the less that's the pricing to make sure h's paid fairly for his time but not breaking your pockets. You can gauge it higher or lower based off your area. If he is going to paint you can add another $1-$1.50/foot. That isn't for both tho it's just total linear feet. So if we are looking at 300 feet. OR if it's a total of 600 each so 1200 you do the math. Like I said for the bigger house you can drop the price down slightly because hell move quicker. For a smaller house I up the price slightly.

Hope this helps

I would say look into your area. View some of the rentals that are currently on the market and stay consistent with that or slightly above. You don't want to install a luxury vinyl flooring in a lower area and also don't want to install a mid grade floor in a higher end area.

As for color I don't think that really matters. I really doubt someone will pay more or deny a rental based off light or darker floors. I would say gray was popular in the recent past years darker prior to that and lighter in very popular now. If you want to be safe just stay with a mid-light brown floor. The white oak is great I have that in my personal home!

As for vinyl vs. laminate, I have stopped using laminate even the luxury ones. Vinyl is fully water proof. Laminate has a thin layer on top of an mdf base. So during install the laminate will chip in corners and is water sits it can sink into the grooves and swell up the flooring. Trust me I know from experience. Just go with whatever vinyl looks nice and doesn't break the bank. They have much cheaper options of vinyl now. I would stay away from laminate for all projects if at all possible, In my opinion!

 Yes they def did this to us and our friend as well! I sent you a message Julie. Anyone else effected by this lets all get together to figure this out.

Yeah man I get it. I had to re evaluate my flip criteria because what I used to do wasn’t working in this current market. We need to continue to adapt to the market and make deals work. Not force a deal But make a deal work. Honestly the market we have been in isn’t normal money isn’t suppose to be that cheap and that free flowing. We are getting into a more realistic market. 

Think about your goal, does this hit your goal? Does it hit your monthly cash flow? Or what about long terM wealth goals? If it works for those and you have the funds then go for it. If your gonna strap yourself cus or the extra points then don’t.

that’s what I do man and it works for me!

That sounds fine to me point wise. You would have to decide if the numbers pencil out for you. 15% down is getting really hard to find nowadays and only $4500 is points is beautiful.

Al D. How do you figure that is 1/2 a point? at 85,000? half a point would be like $425. He's looking at like 5 points. Which is fine if the deal pencils out.

Don't focus on the money other people are making and focus on your goal and if this deal will get you there. Everyone else needs to make money otherwise they won't lend to you.

Everyone is def busy. you'll need to call ten people to get one or two to show up and get one quote back. As someone else said just routing the downspout away from the concrete will eliminate the future cracking. If I were you I would call contractors and say something like this...

We have a concrete driveway which needs to be replaced it is L by W and 4" thick. We also need a downspout routed away from the driveway, is this something you are able to do? 

By giving them the dimensions they will get an idea of the job and know your are serious since you took the time to measure. You may need two different types of people one for concrete and one for downspout. Some renovation companies can handles everything. I would go on Facebook and put a post about your needs. Maybe craigslist, or go to Home Depot and stroll the concrete isle. Have pictures and know your stuff. 

If you do all those you should def get some quotes. Also your not getting calls back? Are you reaching a person? or leaving  a message? If your leaving a message you def need to keep calling. A lot of guys myself included is more worried about future work when they slow down and realize they haven't lined work up for a while. So you'll need to catch them at the right time. Smaller companies with one single person wearing many hats is very common for this to happen. Keep calling over and over and call 10-15 companies not just 3!

Good luck!!

The IRS literally has a rule that payments under $600 you don't need a 1099. I am not asking how to hide them. Just simply asking how to record them so that it goes against the deal and not against either of us.