All Forum Posts by: Leslee Cook

My HML is pretty flexible with me - if he finances the entire project he throws a lien on my personal home. I do hope one day I will have my own cash to finance the deals myself. Until then we are stuck paying points and 10% and realizing a reduced profit

Good article - many people fail to remember those soft costs (realtor fees, conveyance, town taxes, utilities etc).  Its not for a casual hobby unless they have money to lose!

I would also start with specific criteria so you are not overwhelmed looking at every listing.  For my husband and I we decided that no matter what the home we flip will have a listing price no higher than $400k - we know that's the price range that moves quickly in our area. Next we decided that we will not buy a property that has well or septic - my buyers ask me to always exclude those from possible purchases - so I do not want to limit my demographics - so I do not consider those homes for flips.  Also, we do not want to get involved in the structural unknowns of antique homes so our age range is 1950 and newer.  We stay away from cities as well.  So determine your criteria first as well

OMG Where to start!!!

As Jonathan said, its not all glam like the reality shows depict! And the costs add up FAST! One thing a lot of folks neglect to include in their analysis are the property taxes you are responsible for while you hold the property, plus utilities! And don't forget closing costs, realtor fees, conveyance fee (depending on your state the % varies). Also, unless you are an agent, a lot of the good buys are gone before they even hit MLS - and when there is a bidding war on a low valued property, ENSURE and INSIST on have the seller initial your OFFER. That is the ONLY way to guarantee they even saw it. A good buyer agent will ask to do the offer in person to the seller to ensure you are fully represented! So after ALL those fees, then you can focus on the cost of the rehab - and realize, buyers are savvy and know the difference between quality workmanship and crap. Don't cut corners, it may save you a few dollars in the short term, but you will be wishing you spent them when your prop is still on the market at day 60! So now you've gone thru the "cosmetics" Kitchen remodel/bath remodel/opening up the floor (and don't forget the cost of the "supporting beams") , new flooring, paint, smooth ceilings; don't neglect the structural aspect and exterior - electrical upgrade? Plumbing upgrade? Condition of heating/cooling system, chimney repointing, gutters/siding (oh does the house have lead paint on the exterior - that's a nightmare!); driveway, sidewalks, steps, decks, patios. Is your basement dry? Now how about the landscaping and tree removal? It adds up - we've looked at 50 properties all of which appear great on the MLS until you start digging and find these things.

So besides knowing your market - the 1st thing I would suggest if you don't intimately know, is to bring a general contractor with you upon inspection of the home and start adding up the costs (plus the cost of the money you are borrowing, monthly interest, points etc).  You will soon find out that once said and done, it may not be worth your while.  Get yourself a good investor friendly realtor and general contractor!

Are you looking for investors or someone to buy a property you are selling as a FSBO or as an agent?

Hi - I can help you find properties - I am a Berkshire Hathaway "investor friendly" realtor.  I would highly suggest looking along the MetroNorth train line into New York.  There are some affordable condo's that are fetching rents between 1300-1600 per month. 

Is this for a buy and hold or flip?

Here's something else my son just told me - no lease this year!  Rent check was made out to the PM directly NOT the PM Company.  Marshall showed up at their house and asked if anyone lived there because the owners of the house were told by the PM that the house was vacant and haven't been paying the owners!  I guess this guy is going down!

 OK, so if its NOT a rooming house by definition, would it be legal for the prop mgr to put his own selection of room mates in the house? The kids all moved out last night. 

Since I am on this group for RE Investing, I'd thought I'd throw this question out to all of you. My son and his 5 friends from college rent a house - each have their own agreement with the prop mgt company - they pay a fixed rate year round however they have to pay utilities on their own. So I am the name on the Electric bill and my son collects money from his room mates and makes the payment - however, the prop mgr has put 2 more tenants in the house which the kids do not know - one is an employee of the prop mgr and the other is a student of the school with documented paranoid schizophrenia (sp?) who the kids feel very threatened by.  Neither of which pay their share of the utilities putting the strain on the other kids.  Over the weekend when the kids left to go home for the holidays, their stuff was stolen with no forced entry.  We can only assume it was one of the 2 individuals who are still living there. So my question is - would this be considered a rooming house and if so, are there different laws/regulations pertaining to utilities and zoning? If zoning doesn't permit a rooming house, is it legal to put other tenants in the house without an agreement of the existing tenants?

We are in CT