All Forum Posts by: Matthew Paul
Matthew Paul has started 167 posts and replied 6808 times.
Post: Tenant Screening-Bad Credit, Willing to Pay Upfront
#2 Contractors ContributorPosted - Severna Park, MD
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And after they move in , they ask to have the rent they prepaid returned , you will be obligated to give it to them .
Dont do it .
Post: Well water at rental?
#2 Contractors ContributorPosted - Severna Park, MD
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Depends on the type of well and how deep and the recovery rate .
Hand dug , no
Driven well maybe
Drilled well , not a problem
Post: For some reason - I feel like I can't succeed at this...
#2 Contractors ContributorPosted - Severna Park, MD
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Quote from @Jason Eyerly:
This also has more permanence and good/bad implications than anything I've done before. Could ruin my finances, my credit, etc.
It sure could , and you could end up homeless living in your car . Its up to you to create your own success . There are no hard and fast rules to walk you thru investing . If it were easy everybody would be doing it . If you go into it with a mindset that it wont work , thats whats going to happen . Its not as passive as people claim it is . Its work , the payoff takes time .
Post: Refrigerator not cooling how to find year of manufacturing the refrigerator
#2 Contractors ContributorPosted - Severna Park, MD
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It could be a 2017 , 2007 or a 1997 . According to the serial number . Now , how much is a brand new basic refrigerator ? About $500 After you subtract the trip fee of 300 the price of the part (unknown ) and the return trip and labor , AND the tenants not having a refrighertor for how long ?
Go buy a new one
BUT it also may be dirty under neath from dust . Take an electric leaf blower and blow out under the unit , it sometimes works
Post: Refrigerator not cooling how to find year of manufacturing the refrigerator
#2 Contractors ContributorPosted - Severna Park, MD
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- Votes 7,583
Post: Mistake or Opportunity?!
#2 Contractors ContributorPosted - Severna Park, MD
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You mentioned lots of things that need upgrading , replaced or are near end of life . Do you have the cash in hand to do the work ? Murphys law , what ever you dont take of before tenants move in will break the first month and be an "emergency " .
Its a 1960s house that hasnt been updated , make a much lower offer , an insulting offer , cash as is . Then take care of everything at once
Post: How does anyone afford to purchase an STR?!
#2 Contractors ContributorPosted - Severna Park, MD
- Posts 6,977
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Quote from @Jason Eyerly:
Quote from @Collin Hays:
I don’t recommend RE until you have $100K in your account. Be patient, save, and invest in a good index ETF. Shortcuts could be very risky and set you back a decade.
It takes a while but you’ll get there. When you reach $100K, you have something to work with.
I think it's unrealistic for a single man to save up $100k in any reasonable time in the current economy and job market. I was fortunate this year. Healthcare short staffing prompted a lot of bonuses and I'm gonna pull $40k this month with (24) twenty-four hour shifts and then I'm headed out west for fire season which will at least match if not surpass that and I'm owed $40k by my dad's estate. This is not the norm however and I'd have otherwise not been able to pull it off so quickly.
A single man with determination and discipline is in the best position to save $100K in a reasonable time . Work as much as possible , spend wisely , and save . Without a wife and children , and new car payment its easy . I had that and more at 24 years old as a single male doing construction . Bought a house and put 50% down and paid it off in 5 years . No its not the norm , but to get ahead you dont follow norms
Post: Flippers who are ignorant to rehab techniques
#2 Contractors ContributorPosted - Severna Park, MD
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Quote from @James McGovern:
@Matthew Paul high quotes do not mean that was worth what the job is. Sometimes people will pad with contingencies that aren't real or necessary. Most flippers are unaware when they are being taken advantage of
If someone flipping a house doesnt know what their costs will be from the start , they shouldnt be flipping houses . If the flipper is taken advantage of thats due to their lack of experience .
As a contractor , we are not going out there to make wages , we are going out there to make a profit . Thats after wages , materials , permits etc .
The object of bidding a job is not to get the job at a cheap price , its to get the job and make good money when its done . There are no discounts for investors , flippers , or anybody else . Unless you are a production contractor working for national builders ( you make very little ) .
Flipping a house is one of the riskiest part of real estate , especially for the inexperienced , who dont have any connections with contractors . HGTV makes it look fun and easy ....not .
Last year I looked at a house before a novice bought it , told him he is looking at $120K to $150K to redo the entire thing , full gut . I asked the price of the property and told him to run , he will lose money . He found cheap contractors , got busted for no permits , took a year to finish and it wouldnt sell at what he needed . He had to sell his house and move to the rehab to cover the difference .
Post: Being a landlord worth it in Ny?
#2 Contractors ContributorPosted - Severna Park, MD
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Wait for the new mayor
Post: Flippers who are ignorant to rehab techniques
#2 Contractors ContributorPosted - Severna Park, MD
- Posts 6,977
- Votes 7,583
Thats how the inexperienced gain experience . If they got multiple bids and all the quotes were " high" than that would be what the job was worth .
Contracting is a business , but a good part of that business is salesmanship . You dont sell the steak , you sell the sizzle . Maximize your profits while providing a quality job . It really doesnt matter to the contractor if you are an investor , a flipper , or homeowner . The contractors material and labor costs remain the same .
The buyer should have a idea on their numbers BEFORE they even put the property under contract . If they dont buy right , they have lost from the start .
The last person to make money on a flip is the owner , if they know their numbers they make good money , if not they lose . Regardless , the agent makes their commission , the contractor and their subs make money , and the bank makes theirs .