All Forum Posts by: Kyle Jensen

I’ve looked at a few wholesale deals I’ve received, but I’m a little put off by no inspection period. I’ve been told the best we can do is walk through the property, but no inspections can be done. Is that the norm when purchasing a wholesale property?

Not sure if this helps, but we just had 8 windows replaced (same reasons you have above) on a rental that we purchased and it cost us $275 a piece. That included the window, labor, and all the wood rot repair (outside trim/casing/sill). 

For the price it was best to let them handle everything. I found it wasn’t going to be worth it for me to source the windows and then hire out the labor. 

We got a HELOC on our primary residence and used that to fund our first rental purchase and rehab. The rehab is wrapping up this week and once we have owned it 6 months, we will do a cash out refinance and replenish all the funds from the HELOC. Our goal is to do 1-2 of those deals a year.

As long as you have enough in reserves to float the additional payments for a while and you’re confident with the numbers of your deal, I don’t consider that as “too risky.”

I agree with Aaron. Also, cash is king. A seller would much rather have an all cash offer that isn’t dependent on a financing approval. 

@Scott Smith any idea of a ballpark cost for having an attorney setup your initial LLC?

@Nathan Gesner 

Thank you for the feedback! How much do you require for the deposit to hold? Is that the full security deposit or only a fraction of that?

I like the idea of offering the rental to the beat qualified tenant, but it seems that most offer to the first qualified tenant for the reason you identified above. 

Thanks again. 

Any feedback?

We are getting close to listing our first rental and I wanted to get some feedback on the process steps below. Please let me know if I have anything out of order, or something totally missing. Thanks!

1. We will be posting on Zillow and via Cozy.

2. I will setup an auto reply email to all inquiries with a list of our minimum qualifications and a link to a Google Form that will collect some basic info and help us immediately remove tenants who do not meet the minimum standards. 

3. For those who meet the minimum standards, we will follow up to setup a showing (potentially an "open house" style showing so that we can get a few people there at the same time). 

4. For all interested tenants, we will provide them another copy of our rental requirements as well as a link to apply via Cozy. When filling out the application, they will also pay for and complete the necessary background and credit check via Cozy. 

5. When we get a completed application and credit/background check information, we'll follow up with the necessary references (employer/Landlords/etc.) before making a decision. 

6. For those who do not meet our standards, they will get a rejection letter. 

7. For those who we accept, we'll let them know and request a deposit to hold the unit until we sign the lease and accept the security deposit and first month's rent. 

8. Lastly we'll do a walk through with the tenant and complete a move-in inspection/checklist. 

So, how'd I do? Anything look "off" to the seasoned landlords out there?

Thanks!

Looking forward to following another one of your projects! Any idea on renovation costs and ARV?

Thanks guys!

@Simon Collins

It’s in Lakeshore. Once we wrap up the project I’ll definitley let you know what I think about the contractor and if I’d recommend him.