All Forum Posts by: Kelly Rastatter

I have been setting up my tools to launch the next phase of my business and can no longer search the FilePlace. The main search used to have the option to filter to just the FilePlace. Also, the FilePlace used to have its own search on the main page. Both are gone! Are these coming back or is there somewhere else I should be looking for that feature now?

I have a deal I am trying to do my due diligence on. The septic was permitted for a 1 bedroom tank and the house is a 3/2. The wholesaler notes the septic tank is too small and needs to be replaced with a bigger one but hasn't done any investigating past that note.

I think I need to find out if the permit matches what was actually installed and if not, can I get it permitted correctly? Don't know how to do this.

If really too small, don't they have to perk test to see if a larger one can even be installed?

Wouldn't the leechfield have to be replaced to accommodate a bigger tank too?

What else am I missing?

What are my steps to get an estimate of what this cost would be and if it can even be done? I don't want to end up with a property I can't actually fix and sell.

Experienced input is very much appreciated!

We are looking to put an offer on a property that has been grossly overpriced and now on the market over 200 days. We are making an offer that is obviously WAY below even the current marked down price. We just found out that the listing agent is also the financor for the investment company that did the rehab and currently "owns" the property.

The concern is that he may have a stake in the profit (or loss, really) and will influence the seller. Is this a conflict of interest and should he disclose this since he financed? Would he have to disclose it as owner/agent if he has a stake in the profit/loss?

Is there any recourse, as buyers, if it is a conflict?

Thanks for the insight! The inspector just noted there were small cracks and that they are not normally an issue. He stated if the buyer had concerns, he should consult an engineer. They buyer then just asked us to fix it instead. Our gc told our agent he thought there was a cracked footer. Sounds like we need to get an actual foundation specialist to take a look. 

We are selling our first sfh and the buyer has asked for several repairs including a cracked footer. We had a gc look at the minor cracks and said it wasn't a concern but when our agent asked him to write a letter and use his license number, he changed his tune. Now he says it needs a couple jacks. We are not happy with our gc with other work he did so we need to cut him loose. His crew put ladders on the downspout diverters and crushed them. He also just didn't do some work he agreed to. So, we have learned our lesson about having a detailed sow but here are my questions:

1. Anyone recommend a good gc/handyman for quick repairs to get a house closed?
2. Anyone had luck getting a gc to repair minor things his team tore up?
3. The "cracked footer" is just a small crack in the part of the foundation on the exterior wall that is poured where the rest is cinder block. What would a couple jacks typically cost?

Thanks for any and all advice!

Kelly

I am a PMP certified project manager by trade. In the world of project management, regardless of the industry, you will find the best are not the ones swinging hammers. A great PM with the ability to learn will be a pro at project management. They will learn enough of the details to be able to call BS, help the team identify risks to your projects, and monitor progress of work. 

You can easily teach a good PM about REI and construction, especially if they already have interest. It is very difficult to teach good project management skills to a pro in construction or any other hands-on trade. It is just a matter of expertise. I would advise to find a good PM and teach them the industry.

I think most flippers use more of a GC. From what I see, the ones who scale up will add project managers to their team to take over more of the duties of the investor than the GC.

@Mark J.

I am right there with you! I found your comment while looking for notes from the shows I listened to while driving. The ones I listen to on my lunch break at least have some notes put to paper (well... Evernote anyway). Do you have notes from any of the shows yet?

@Kelsey Damron

Welcome! I'm in Smyrna, TN and just starting out as well. I wish I would have started when I was 20 and first got interested in RE. If I could go back to the days without kids, I would absolutely house-hack or live-in fix-n-flip! Either a multifamily 2-4 units while living in one and renting the others or a fix-r-upper to live in while rehabbing. Either way, you can and should still use the strategies on here to find a good deal so your purchase price and down payment are low. Doing that, you can use some of the advantages of being owner-occupant like 203K, Homepath, and THDA. Look into first time home buyer programs. I bought my home with less than $2K using THDA for my down payment. You just have to attend a $25 class and they pay 3.5% down and .5% toward closing costs for you. There may be penalties for selling within 7 years if you are making substantially more income but you can always refinance to pull cash out for the next deal. I wish I had known about the 203K or other financing that will cover the cost of repairs because they can let you get a loan with rehab costs and possibly let you avoid paying PMI or MIP (FHA loan mortgage insurance). This lets you find a better deal than looking at move-in ready homes.

If I were in your shoes, I would research only those options that apply right now. It is very easy to get sucked into Bigger Pockets with all the great options and then never actually DO anything with the knowledge. The more I learn, the more I seem to need to know because there are so many options and so many details to those options!

Good Luck!!

@Megan Moulton-Levy

I have been following this and am very curious as to how it turned out. How did you end up getting it sold?

Thanks for the info everyone! I am reading The ABCs of Real Estate Investing by Ken McElroy right now and so far, it is great. I have read info suggesting using hard/private money for rentals but that doesn't sound like the numbers would work long-term unless they are doing value-add and then refi with a commercial loan. Would the bank require me to provide 25% of the cash-in at that point or 25% of the current operating value?