All Forum Posts by: Justin Lowe

THEY ARE A FRAUD!!!!
THE ONLY PERSON YOU WILL DEAL WITH IS NAME DAVID...NO LAST NAME.
THEIR TELEPHONE SYSTEM IS COMPLETLY AUTOMATED. YOU WILL NEVER GET A PERSON WHEN YOU CALL.
IF YOU GIVE THEM INFO ON THE DEAL YOU WANT THEY WILL CALL AND CALL AND CALL. HE HAS HIS SECRETARY DO THIS...SOUNDS LIKE IT COMES FROM HER HOME (BABY CRYING IN BACKGROUND).
THEY JUST WANT TO GET UNDERWRITING MONEY FROM YOU AND THEN FIND ANY, AND I MEAN ANY, REASON TO DENY YOU. EVEN ILLEGITAMITE ONES.
HE IS A COMPLETE FRAUD AS IS THE COMPANY.

DO NOT, I REPEAT, DO NOT DO ANY BUSINESS WITH THIS COMPANY...OR DAVID. WHO IS THE SOLE PERSON OF THIS COMPANY.

ANYONE HAVE ANY QUESTIONS. I WILL GIVE YOU ALL DETAILS AND ANSWERS.

I am describing a company that buys bulk REOs and doesnt rehab, just sells. I thought they were called that.

Neighborhood is full of larger homes w/multiple bed/baths. This house was previously a 3/2. Previous owners made a master out of two. and the downstairs is unfinished but has some things done.

The HML im using says they pay all lump sum up front with status updates from me. I have explained that I can and want to do the work. As I have stated before, I do have carpentry/HVAC/and electrical experience. I will get a professional for the items that I dont believe I can do properly.I am humble and free to admit my shortcomings. I also like things done right, so if i cannot do it right, I will have it done right.
It will not be the most expensive house on the block.

Thanks for your thoughts.

OK, Well... not surprisingly, the liquidation company that owns the house turned down my offer at 50k, they didnt counter. Just reaffirmed their price at 70k. Realtor (theirs) stated they were not motiviated.
It has been on the market a little over a month now.

What are your suggestions for my counter. I do not want to go over 60k, as it will make it too close for my first rehab (I want to leave a decent cushion for mistakes). So I am looking for suggestions to negotiations. Come back at 55k and expect 60k??

Thanks for suggestions.

Thanks Will. I didnt even think about that. Just another reason why I love this website!
Would I just run down to the inspectors office and they will give me the permits and timeline for inspections and getting done on title?

Yes, I was using numbers from a finished basement to add to square footage. A previous owner has already started the remodel. rough carpentry/electrical/plumbing has already been started. So there is no physical addition to structure.
Pool is also already there and I will be doing maintance to it.
I was thinking of adding 20% to budget.

Those items you mentioned are in my budget as well. I just was trying to list the more major expenses in my rehab budget.

That offer from hard equity financing was for the original asking amount. I obviously want to try to get a better deal, but that is for that scenerio. I would like to keep a little buffer in there though, maybe 20% of improvement budget.?

The reason for the cheaper cost is that I will be doing the majority of the rehab myself. I have experience in carpentry, electrical and HVAC through previos jobs.

Also, what is your view on appliances?
Do you go ahead and furnish or wait till negotiating sell?

Hello,
I have been in the forum for awhile, but am just now jumping in.
I want to list the details of my deal for everyone to critique. Any help or advice is greatly appreciated. As im sure i am or will make mistakes. Just hope i've given myself enough cushion for them.
Anyway details as follows:

2bed/1bath 1100 sq ft (as of now)SFH.
Im making bid for 50,000 w/22,000 in improvement costs. Original price was 79000, but realtor called me same night to say seller would take 69000.
House is in a nice area and good school district. Previous owner must have been meaning to remodel basement, as it is totally gutted.Master bedroom was also previously 2 rooms, but they removed wall. I think I will get more value in 3 bed rather than 2 bed.
Once fixed up and remodeled, it will be a 3bed/2bath 1712 sq ft.

Major improvements include; replaceing interior doors and two entry doors, flooring thoughout house (carpet/tile), ceiling light/fan fixtures,basement(all), new electrical panel,countertops, windows, and paint. It also has an outside pool that is concrete and I plan to resurface and repaint. I have alloted money for pool at 2000 for pool/pump/filter.

I am using a hard money lender for financing details as follow:
Gross Loan Amount: $93,445.50 (closing costs included)
Net Loan Amount: $90,000.00
Loan Term: 3 Years
Amortization Type: Interest Only
Interest Rate: 11.500%
Estimated Payment: $862.50
Buy down Option: 8.500%
Buydown Payment: $637.50
Buy down Costs: Add 1.5% to lender fee
Prepayment Penalties: N/A
Lender Fee: 2% of net (us)
Underwriting Costs: $950.00, due at submission of signed offer

The details will change a little based on end negotiated deal.

I have looked all over the web for ARV, and I am relativley certain that I will be asking 135000, expecting to get 120-125000.

I know I am probably leaving something out, so please ask and I will follow up asap.

Thank you in advance for helping out a new investor!

It was my understanding that hard money lenders awarded money based on the property and not necessarily the person. If this is the case, how does one get preapproved before knowing the property?
Thanks again.