All Forum Posts by: Kevin Ivey

Quote from @David M.:

@Kevin Ivey

Oh that interesting..  I like the live until the next year part..  But still they don't need licensure --- homeowner should be able to do whatever upgrades they want to their own house.  Not saying they are always proficient  lol

So, how does the "system" know?  Does Title check last year's worth of permits?  You have to register somewhere to do a rental??

Thanks.

For WA in disclosures that are required and a legal doc added to any contract it asks if all remodel work was done with any required permits. 
Occasionally I have to mark don't know because obviously something has been changed by previous owners and I don't research if permits were purchased and they only go back so far when flipping a 1950s or a 1907 house.

Quote from @David M.:

@Ronald Ty

hmmmm... not sure if picts would be enough for inspector... Prbably depend on the inspector. Lets face it, if the flipper/person isn't organized enough to arrange a permit inspection, they probably aren't organized enough to take pictures. Also, if they own the property personally and didn't use a LLC, they would probably just say that they did the work themselves and then don't need to get a licensed traded involved.

In WAState the home owner can do the work themselves but still needs to be permitted/ inspected and you have to live there for the next year you can't sell or rent it in that time.

From my understanding you can't use a self directed retirement account to fund active flipping business especially using keep the profits as income, I believe it falls under the self dealing rules. 

I took out a loan against my employer 401k when I first started flipping.  I lost my job at 49 and have been glad I had a couple of side hustle flips under my belt and went fultime into it over the last three years. 

Best of luck!

  There is a free "www.truepeoplesearch.com"

That does a great job of pulling up all kinds of info including other associated addresses possible relatives etc ... and phone numbers mail text etc   things can fall when relatives don't know what to do with a property or who has claim etc ...  good hunting

The HML buyer (like me) may have to offer less actually since they have added to costs to a true cash buyer. 2-3% loan fees, and then the monthly payment (on a 500k buy that's an extra $36,000 I have to budget for). There maybe extra hoops (appraisals, buyers record) but that varies widely based on the lender, and they should have it all squared away if they have experience.

90% of all wholesale deals I see I won't touch because the numbers are all bogus. 

Best of luck!

If that is a shake roof, replacing it will also need all new sheeting underneath the new composite shingles, since there was none with the old shake roofs.  Extra $$ to just a normal reroof.

Quote from @Joseph Hernandez:

Thanks for your comment David. I know that each rehab is different. But in general, If you purchase a cosmetic fixer, do you want at least a 200k spread? In other words, if you buy the property at 250k, are you looking for an ARV of at least 450k?

So many things go into your "spread" do you have to use HML or cheaper financing how long do you expect to have carrying costs, are you doing the reno labor yourself and paying out of profit or are you hiring the work done. Are you selling yourself or using a realtor how much are they charging, what staging/ photo costs are they covering, and probably a handful of other things. That I know differentiate my business and possible offer vs another investor.

A thing to remember is that with the properties that have a large amount of equity but have gotten into this situation, something is driving it: the 5 Ds, Denial, weighing their options, do your do diligence can you help be a resource as they decide best option for themselves?   I just bought a property worth 1.1 million for 600k at auction only a 6 year old house, some one should have saved these people from themselves, I still need to evict and gain access to know how good of a deal it will be but I am curious to meet and find out why they didn't do something else and make more money?

We are trying to reposition our flipping business to be a broader solution than just a cash buyer, or buying at auction.

Hi Everyone, looking for a CPA in the North Sound to Marysville area for this next year.  Want some one familiar with real estate and Solo401k.  We are hoping to start one this year, and want to ensure we keep legal on our flipping business, rental income, and SD a solo401k. 

Thanks for any recommendations.

Kevin 

In Wa anyone can pull the permit, but you will need the correct kind of contractor/ lic to do the permittable work.  Electrical, Plumbing are specialist, and GC lic can do most of the other work.  Not all rehab work requires a permit, cosmetic, paint, flooring, trim, cabinets, etc. 

When you sell the house in WA state in the required disclosures it asks if any remodel work was done and if all proper permits were acquired.  You would not want to falsify the sales contract. 

We do a lot of flips and get construction non occupied insurance from a our farmers insurance agent the bills say foremost.  

As to permits & starting at light demo not removing studs is fine but depending on if the wall is load bearing (and how you inspector wants you to verify, your contractor knows to need a structural engineer have been answers ibhave gotten) is what permits will be needed have a good idea of what you want when finished before moving walls etc 

Best of luck!. We are actually trying to matket to this situation in our market tonhelp navigate all these questions