All Forum Posts by: Account Closed

I'm closing next week on a commercial loan from a local bank in which I have the house deeded in my LLC's name. They didn't have any problem with it.

I personally don't like bold colors either and lean more toward the earth tone colors. Tan, bown, green, grey.  Thanks for all the input.

that was suppose to say neutral colors tend to give it a more homey feel.

In thinking about painting the rooms in a flip house, I'm leaning towards painting in neutral colors, but I'm not sure if that's the right way to go or not.  I know some people paint everything the same color, white.  I'm just not a fan of all white.  Integral colors tend to give it a more homey feel.  What are buyers looking for?  Something that feels more homey or institutional?  What does everyone else do?

I'm only looking at 3-6 mo max on this loan as this home is in a very nice neighborhood close to schools with only one other home for sale in that neighborhood. Comps from that same neighborhood show houses on the market sold from 2 weeks to 2 mo so I have no doubt it will sell fast. That's why I think paying $8,000 right off the top is a little extreme not to mention it will cut into my profit considerably. He'd most likely make more than I would. I wasn't planning on that.

Well that was my thought. Sad part is, it was a close relative of mine.

I have a private investor for my first flip and thought we had an understanding of the terms which were 10% interest per year and 10% of the profits for the investor. As we get closer and I presented him with a promissory note, he says that there's a misunderstanding in the terms. He said it was 10% interest per year but also 10% of the note, which was to be $80,000. That means he gets $8,000 right off the bat no matter how long the term is. That was not my understanding at all but now my question is: are those terms reasonable? I have my own thoughts on this but I would like other opinions on it. Here's how the deal was to work, he invests $80,000, I put down $12,300 & pay for all the rehab (approx $15,000 but could be more, there's a few unknowns yet) plus do the work. Any thoughts?

Just a question here that crossed my mind in thinking about the damage that needs to be repaired on a house I bought from the sheriffs auction. I found out after I purchased this house that the pipes from the baseboard heating registers or the plumbing pipes, either one or both of these burst in March causing a lot of water damage to the house. Someone had cleaned up the water & removed the ceiling's drywall but there is a lot more to do to get it back to the way it was. My question was, will the previous owners/bank homeowners insurance cover something like that if it was still in force when it happened? I purchased it this month with the confirmation of sale next month. In talking to an insurance agent here, he informed me that the previous homeowners insurance should cover it because it goes back to whatever company was in place when it happened. I'm not sure if that works in this case because I bought the house "as is" but was unaware of what happened until after the purchase. Does anyone know?

Also does anyone have any suggestions on where to get insurance now that I've bought it. This agent also told me that very few companies cover homes in a fix & flip situation, especially if bought in the name of an LLC. HE said his doesn't.

I just purchased my first flip at sheriffs auction but there is extensive mold due to the radiator register pipes bursting over the winter cause no one left the heat on. I plan on gutting the whole lower level (quad level house) but it has some kind of tile installed on the concrete floor. I'm not sure if it's ceramic, porcelain or some other kind of tile but my question is whether the mold would get into the grout or the tile itself? I was hoping to salvage the tile floor. Does anyone know?

I did call the utility before the sale just didn't think the damage was to the extent some of others thought it was and won't actually know till I can get a plumber in there. And I wasn't planning on entering before my time just wondering what others do to alleviate their fears.