All Forum Posts by: Kevin Suksi

Thanks everyone for reading my post. Both of you are right on; it turns out that the home the units were coming out of was 3000 sft - the furnace would have made the ducts whistle in our 1250 sft house!

It looks like our solution will be to purchase a used but relatively new furnace + AC from someone on craigslist and then have our contractor install them after verifying our fit. A gentleman who lives a mile from our property has both for sale. If it works out, I believe we can get this done under budget, which is $3,000!

We have a home that we are flipping that currently does not have air conditioning. To add it, we must replace the furnace because the house has an addition, and the existing furnace is not powerful enough to support air conditioning.

We may have lucked into a solution though. I know someone who has an A/C unit and furnace that are both around 5 years old that I can get for $800 as a package deal.

The issue is that they are coming out of a significantly larger house. I don't know exactly how much larger, but I would estimate that the house the units are coming out of is 1800 to 2000 square feet. Our subject property is a 1250 square foot bungalow.

Any opinions? I read elsewhere that this is a bad idea because if you go with overkill on the A/C unit, it will cycle off and on too much. Not sure if this is true or not. Any advice would be appreciated.

Thanks!

Thanks Karim and Lakia.

Karim - we've had good luck so far; I think we're picking the right areas within metro Detroit. The last flip we did was only on the market when we resold it.

As an update - we just had an offer accepted yesterday on another REO, so we now have two active flip projects. We also have a pretty good lead from one of our NOD mailings that we're going to go out to look at on Monday.

Thanks Ted!

I'm glad you reached out. Our focus is rehabbing, but we are also trying to gear up for wholesaling as well, building buyer's list, doing NOD mailers, etc. If our funds are tied up in rehabs we might need a source like yours to fund wholesale flips, if we can get that side going. So thanks!

Kevin - sounds great! keep me posted!

William - thanks! What kind of real estate strategy is your focus? It looks like you're focusing on rentals? Do you focus on a particular area within metro Detroit?

Thanks Charles, I'll definitely keep you posted. We closed on the sale of our spring flip a couple of weeks ago; closed yesterday on a house that we're going to rehab and get back on the market for the fall rush.

Ethan - yes we are doing some of our work with a self directed IRA - we did the checkbook IRA through safeguard financial. We are doing the current flip out of the IRA and are searching for another one that we'll fund traditionally.

Thanks for the responses. Kevin, I will try to get a hold of you tomorrow to find out more about the Merriman / 8 Mile property.

@Steven - yes that is the point, but I think there has to be a transition phase - I don't think anyone will give you unsecured business credit for an LLC you formed yesterday - my thought process is:

1 - establish credit accounts for the LLC (most creditors will not do this for a young LLC without a PG)
2 - purchase goods on credit using the PG, but recording the payment stream under the LLC's EIN and DUNS number
3 - after some time, apply for credit without PG once said payment / credit history is established for LLC
4 - once LLC has 2 years of credit history, and ~hopefully~ credit markets improve, apply for business LOC

Greg thanks for the reply and looking forward to meeting you and Erika today. As for the DUNS number - we never applied for one, but we went onto D&B's website and asked what our number is, and they emailed one to us.

With HD and Staples, we gave them our EIN for Michigan Starter Homes and signed off on a personal guarantee.

Richard, I applied at Staples and they are going to give my LLC a line if I give a personal guarantee. This still builds the LLC's credit, doesn't it?