All Forum Posts by: Kevin Scott

Chris is pretty much correct.  General maintenance you would be ok with for the most part especially when living in the house but its basically paint flooring and cabinets if you are doing any work. There is a 12 month warranty  when a contractor does the work which is part of the reason it's in place. Drawing the line between subcontractor and gc is can be a gray area but the are a lot of subs that have a gc license and should be willing to talk about it.   Do talk to several though

Pardon my grammar and misspellings I'm on my phone :)

No offense to anyone here saying there isn't a problem right now as if that means anything.  I'm also not predicting anything good or bad but to say it's good now and the conditions are different is in many ways not important as to what is going on.

The crash didn't start in 08 it started in 06. It got momentum in 07 and by 08 was devastating.  The point is it happened fast.  The economy was great when it happened.   It always is before a crash.  How long are we really talking right ?

What we are seeing now is definitely similar.   Great employment numbers they've been good for 5 years and continue to get better.  Same as before. This leads to private debt going crazy. This is happening. This leads to breaking dereg.   This is also happening again.   Funky loans are starting to appear.  0 down etc. Lowering of credit standards. Im not saying they have hit levels of 06 07 but they are coming out.  

I am saying this not be a pessimist as for many in this business it really doesn't matter it's just how you adapt.  But to say the economy is booming and liar loans aren't happening is not accepting that they aren't before the last crash either.  They started coming out before the crash.

People tend to step over a dollar to save a dime when it comes to taxes and make poor decisions where they would actually make more money if they just paid the tax.  I don't know how many times we've had sellers more worried about paying taxes then what they actually net in the end after completing a deal.

I'm not claiming the poster here is doing this.  It's a good thing to look at and his situation he may or may not be right in questioning it.  So this is a great post to discuss. :)

I've found washington to not be that bad as a percentage of value.  The issue is property in washington epecially around seattle is very high in value so when u factor in what u pay in property tax don't forget to factor in the equity you have and gain.   When you pay 2 percent but gain 3 percent you aren't losing and the tax is somewhat irrelevant.  If you pay 100k for a property and the tax is 2.5 percent a year and you average 3 percent appreciation.  But then buy for 600K and have 2 percent in property tax with the same 3 percent appreciation that must be considered.

I understand there is nuance to every situation but this really doesn't ever get mentioned because as soon as anyone hears the word tax they freak and all logical thinking goes away. 

No. He meant Taro there really is a Taro on here.  Strange that everyone thought it was Tarl. Hmm.  OK he probably meant Tarl

@Skyler Mckinney

I agree with @Nghi Le .  I know that isn't what you are looking for in the answer, as your question is very specific.  But its all the help I could give (at least I'm not knocking dohardmoney)  I have used a few hard money lenders and have never had to put down more than 20 %.  Anywhere from 5 % (not that common) to 20%.  Its hard for me to find a real hard money lender that requires more than 20% down in my area.  Typically we are around 10% plus some costs on most properties we buy.  Several only use the deal to qualify the purchase so credit isn't a problem. 

The other issue you sort of alluded to was how many you have done.  A couple of the lenders I have used didn't even ask how many, so that didn't seem to matter, My guess is there is some lender in your area that doesn't harp on that either and is more concerned with the deal.

I'd send you the list but the ones I'm referring to are in the pacific nw.  Someone has to be similar in your area.   

Ive heard good things about Nghi Le (not just on bp but in our local meetups) although never used him or the company in his signature, nonetheless have only heard positive things and it looks like they might do deals in your area.

 I am not affiliated in any way with them so this isn't a sales pitch, ive never even met him, just heard positive things.

Theres a lot to unpack here on this question but I'm on my phone so will have to go into detail later but it doesn't sound like it's failing.   Need a bunch more info.   Original buy price cost of repairs.  Total of all monthly expenses etc.  Any more info u can. 

Sounds like you just didn't buy exactly right but that won't kill your next deal and the one u have seems reasonable without knowing all the details.   

The goal should be to buy and have the equity you need to cash out refinance your next property immediately without needing appreciation.   You probably won't be using a regular lender for these deals although its possible.   You might also need to get a new broker or at least see if they can look into other programs. 

@Liz Cole @Ruth Bayang Want to be clear. I don't think assignments should be banned just think people should use them responsibly so they don't get banned in the future. Like a flipper that has too many projects could assign some of them. Wholesalers should really consider just closing instead of assigning or at least make sure they can close if they can't find a buyer. Realtors should really be cautious like Ruth's friend getting an attorney was a good idea although attorneys are wrong all the time or possibly they are focused on the law and not that someone could lose their license or be fined by NAR . Even if its legal from a state or federal perspective.