All Forum Posts by: Kyle Shepherd

Do you have any suggestions on how to go about assessing the length of damage and getting costs to fix it? (After the water issue is fixed.)

Thanks guys, that's super helpful.

Rookie here. A deal I was looking at was scooped by someone else. The deal fell through. The listing agent told me it was because they found some termites and "wood fungus".

I've never heard of this wood fungus before and neither has a friend of mine who's an insurance adjuster and had his own properties. A google search wasn't overly fruitful - maybe it's known by another name?

Anybody know what this "wood fungus" is? Would the same group that handles the termite care also deal with the wood fungus?

Hey all, I know there have been a lot of changes in the market in the last 4 years since J Scott revised his book Estimating Rehab Costs. I'm jumping back into real estate looking to secure my first deal - my weakest point right now is estimating costs. I just read J's book and while I understand that the ultimate answer is to call contractors myself just like he says, is there a rule of thumb of any sort that can be used to convert his ballpark 2019 numbers to ballpark 2023 numbers?

Originally posted by @Brad L.:

@Kyle Shepherd has nothing to do with your loan officer being “good” or “bad”, some banks operate that way in that if you are not occupying the property they only offer commercial financing. More often than not I’d bet it’s a policy thing not a loan officer thing

That's really helpful to know.

Originally posted by @David Barnett:

I really don't think borrowing the down payment at this point in the market cycle is a good idea...

As mentioned earlier, I would not be borrowing the downpayment. It would be a partnership setup where he would own part of the venture.

OK. That make sense, except I wouldn't be "borrowing the money" per se - he would put up the money, but then also get that share of the profits. Is that still problematic? I do have an LLC I could add him to.

OK. If I wanted to partner with somebody for the 25% since I don't have the 25% myself, how would that impact the equation?

OK. But the "30 year personal conventional mortgage" could purchase a SFH that would be rented out right from the gate, is that correct? Sorry for asking the same thing probably 5-6 times. Really trying to wrap my head around this and overcome bad information / bad communication / conflated definitions / etc.

If I were to talk to a bank about this would this be a 30 year commercial, or a 30 year residential?