All Forum Posts by: Arvin Poole

Thanks for sharing Stephen. I also have a duplex that I just put under contract that I will need an inspector and surveyor.

@Abbie Bejrowski I paid $250 for my inspection, but could be up to $400 - $500 since it is MF.

@Abbie Bejrowski

I used HouseMax and they charged me $400 for my BPO. But as @Ryan mentioned, the prices will range depending on who your lender goes with.

@Abbie Bejrowski I think you meant inspection. Who is your agent? They should work with you on making the property accessible if you find an inspector.

If you are referring to an appraisal, the lender will typically order that and have it arranged through the agent. But only if you sign the contract of course.

@Jordan Moorhead Thank you kindly!

@Abbie Bejrowski

If your lender requires an appraisal, be prepared to pay for it. Due to the quick close, they may suggest a bpo which is a watered down version of an appraisal. Let’s hope they don’t require one.

@Abbie Bejrowski

You have a bit more days than I did. I only had 6 days to close.

I was able to find an inspector same day in San Antonio. A suggestion to quickly find an inspector is to search for Home Inspectors Bastrop on Facebook and call all of them up. I say FB because you can also message them directly.

Good luck!

@Abbie Bejrowski

Yes, I would find an attorney before signing anything else. Or if you feel comfortable, write in your own contingencies. You should post a separate BP and FB post and ask for recommendations of attorneys who have experience with wholesale contracts, double closings and quick closings. The wholesaler will press you and will NOT budge unless you are firm on your own contingencies and willing to back out of the deal. So many new investors get screwed because they are rushing based on the seller’s timeline and not there own.

Looks like you already put up your non-refundable deposit??

My point of not waiting for an inspector is so that you and your husband will already have pic and photos in case it will take you some time to get an inspector out. You still want an inspector but make your property walk a priority since you put money down sight unseen.

Check with the HOA, and pull permits on that property with the city of Bastrop. Also, check neighboring properties for permits and jot down the contractors names. Good hack to find a GC or sub who may already be familiar with that property.

Appraisals in TX are not required but the lender may require it. So ask your lender asap. Also you will need to prob pay upfront for insurance min 6 months. Check with lender.

Seeking recommendations for investor friendly attorney who can assist with legal purchasing contracts, JVs, quit claim deeds, entity setup for new properties.

Hi Abby! Congrats on securing your first MFH deal. A few questions that I have to better understand where you are and your goals.

1) Is this your first ever deal, or just your first MFH? If your first ever deal, I would highly encourage you to get an attorney to review ALL docs before moving forward.

2) When is your closing? Is it a double close

You are likely going into a deal forced to do a quick double-close without knowing what your rehab costs are. In these wholesale deals, don’t trust the numbers provided. Do you own due diligence, particularly with New Western (because I just went through a deal that didn’t go through due to my numbers), you may be responsible for closing costs on both sides (seller and buyer) since the wholesaler in essence doesn’t actually own the property.

3) so I have to pay cash and waive inspection, seller disclosure notice, etc

This is a typical wholesale structure and in your contract you will see all of this spelled out. As I mentioned, those terms can cost you alot more money if you are not clear on the contract.

4) Waiving inspection means that the seller is selling property as is, but YOU (the buyer) should still order an inspection for your own due diligence. I would highly advise that you get an inspector to go over the property, including mold, lead and termites. 

5) Have you read J Scott’s Estimating Rehab expenses book? If not go purchase it now on BP and familiarize yourself with each of the 25 areas before your property walk.

Sorry if you are not a newbie at this but I am assuming you are:

Since you do not have a contractor in mind today, it is IMPERATIVE that during your property walk that you take lots of pics/vids with voice comments of the 25 areas (if they all apply, ie, exterior, interior, from roof to base, ceiling to floor). I would not wait for a contractor to come out with you. 

It would be helpful to have a friend to go out with you to walk the property to have a 2nd set of eyes.

I also would not wait for the inspector’s report before walking the property since time is of essence.

6) After property walk (assuming you haven’t secured a contractor yet), you now want to reach out to as many GCs/subs that you can to try and get them to give you a quote. Here is where your pics and vids will be super helpful if you can’t get a a GC out before your closing. Ask them for an estimate. Some GCs will refuse to give an estimate without walking the property but let them know it is a quick close and you’re looking for estimates. Go to BPs marketplace, City of Bastrop development page and/or go to the local Bastrop Home Depo or Lowes Pro Center early AM and ask them for recommendations for GCs that would be willing to come out. You may run into a few while there. 

7) Is the property 100% vacant? From the data provided, appears there may be only 1 vacancy.

8) Will you manage this property yourself or hire a property manager? 

9) I am looking at your rental numbers but don't see estimated repair numbers. You need to make an assumption that there will be repairs to come up with your estimated CoC return and where your break even point is based on your ARV. Most lenders will want this before going to closing.

10) Is your lender requiring a full appraisal or BPO (Brokers Price Opinion) before funding the deal? Please confirm this asap if you’re not sure.

Good luck through this process. I understand the stress but ensure to be very tight and intimate with all of your calculations. Don’t underestimate your costs, add some contingency because in most cases, something will come up unexpectedly.  

Best,

Arvin