All Forum Posts by: Mathew Hilton

@Gustavo Munoz Castro I found my guy on Upwork! His rate is $5/hr. I have to subscribe to a leads site (BatchLeads) and I bought a multidialer and I have him use it.

@Travis Beck yes I agree that going through these reps and steps are helpful just for learning. Yes, come to think of it, I can probably raise my offer assuming that there aren't any other major repairs that I'm unaware of. Yeah, assuming their needed down payment for the next house, I'm thinking they might be stretching themselves a bit to qualify for the next house. I'm not a realtor but I work with one and I'm definitely thinking of referring them to him to sell if this doesn't work out this way. Thank you for your feedback.

Hi all,

I'm a relative newbie, I just starting establishing systems to look for off market deals (D4$, cold calling with a dialer, etc). My cold caller identified this lead and I wanted to see if I could come up with a creative finance solution in addition to an all cash offer in order to give the seller options.

Location: Fresno, CA

Built 2010

4bd, 2 bth, 1600 sqft

ARV= $415k

Their current asking price for an all cash offer= $390k 

Their mortgage balance ~120k, interest rate is 4.51%

Roof is original (14 yo), HVAC is new (replaced last year), no other updates or major repairs that he's stating.

Situation:

The husband states his family of 7 has outgrown their current home. They've been trying to buy a new construction home but they've been getting outbid. He also states they don't have enough for the down payment (which he says he needs $230k for the downpayment). I know that down payment doesn't really add up to me because even the 5bd/3bth new constructions are going for ~615k, which even if he was putting 20% down as an owner occupant, that'd be something like $123k for a down payment...

He wants a cash sale of the house to make this seamless. He also would like for the family to be able to rent to stay in their current home for a few months so they can buy then move directly to their next home. He doesn't want to move to temp housing, get storage, etc.

Offers:

Cash as-is: my max allowable offer is $242,700; with this, I'm thinking I can let them rent for 3 months for free to sweeten the deal. They're also avoiding short term rental fees, temporary storage fees.

Creative finance: they have too much equity for a subject-to deal; but I'm wondering if I could do a wraparound mortgage of 300k at 4.51% (payment would be around $1785/mo; market rent is around $2300/mo) and maybe offer like $40k cash?

My exit strategy: for cash as-is offer, I'd like to flip this or wholetail it. For creative finance, I'd keep it as a long term rental.

Any angles that I'm missing? I'm very new to creative finance and I'd appreciate any thoughts! This is probably not much of a hot lead because they're not in real distress and they're likely just unrealistic with what a cash offer will be. I know I have to do some more digging to find really why they don't just want to list this house on the market.

Thanks for the thoughts. I'll shop around. Nice thing is that there are two other sheds in the backyard with no reported termite damage. Interesting idea about how people accumulate junk and don't want to move--but makes sense! 

Hi all,

I have a SFH that I'm planning on renting. There is an storage shed shed adjacent to the garage that has been found to have drywood termites. It's quoted at $2275 to treat, but can I just demo the shed and dispose of it in a landfill? Any issues with this plan?

Thanks in advance!

-Matt

Thanks Daniel--messaged you

Thanks Josh for the figures--I'll message you

Does anyone have any quotes (materials+labor) for an asphalt shingle roof replacement for a two story 2200sf SFH in Indianapolis, Indiana ? Pitch looks ~12/12 (45deg slope), just a simple gable roof. Contractor referrals appreciated as well, thanks in advance!

Thanks for the feedback everyone, I'm going to get a contractor to open up the siding and see the extent of the ant issue as well as the mold issue in the attic. Also I forgot to post the bowing foundation picture but you can see it below:

Got an inspection report back from a property with the above titled issues. Here are the quotes/pics from the report:

Re carpenter ants:

In the EXTERIOR section: "There is missing siding at the SW corner and the old wood siding is exposed at that location. There is damage to the old trim board from carpenter ants. There may be more damage under the siding in that area or other areas that we can not see"

1. Anyone have experience with carpenter ants? Is this a problem that must be fixed immediately?

2. Would I need an exterminator to tear open all the siding to identify the affected wood?

3. How much has it cost you to fully inspect and exterminate carpenter ants?

Re mold:

"- There is a biological growth present on the roof decking above the improperly vented bath vent. - (See Photo 8) - (See Photo 12) - (See Photo 13)"

1. When you see/read this--would this warrant a more thorough inspection? Or does this seem like a straight-forward, fix the ventilation issue in the bathroom to avoid the moisture build up that leads to the mold?

Re: foundation:

"- The North foundation wall has a bow in the middle area of the brick. The SE corner foundation is cracked. - (See Photo 1) - (See Photo 6)"

1. How bad do these foundation issues seem? Is this an ASAP fix or good for maybe 3-5 years? I don't see any evidence in the report of walls demonstrating any vertical or horizontal cracks. Inspector did make a comment that the siding on the south side wall is bowing out but not sure if that's related to any of the above.

Any thoughts or feedback is appreciated. I'm still trying to get a hold of the inspector to talk through the issues on the phone and I'm just trying to get as many eyes on this as I can.

Thanks everyone, this is very helpful to understand the pro/cons of the different strategies. I'm definitely rethinking my refi at this point as well. I can see that the 100-200/mo is small potatoes compared to the 45k equity growth, but if I'm not trying to scale aggressively/don't have the deal flow to do more than 1-2 deals/year, then the cash out refi seems unnecessary if the money I pull out isn't doing work for me