All Forum Posts by: Manuel A.

I'm just going to guess no, and pass on the other deals with only two sold comps, I think it's what would be best....

-Manuel

When I look at a house, I view it like the goal is to build a strong case for why someone should finance most of the project for me. That being said I usually like getting at least 3 sold comps. My Realtor could not find three good ones for this current property.

Me being the beginner that I am, do you think I can get financing with these comps in this picture (also, just take my word, the 2 sold comps with 0.5 mile radius of the house. The others are within reasonable range some within 0.5 of a mile, some within 1 mile...):

The subject house is 3bed/2bath, sqftg 1,270... and the comps are 1 story as is the subject house. Basically the subject house and comps have the same style and this is an older, but nice neighborhood.

I don't think the stuff I just said matters, the point is, do you think these comps are okay considering there is only two sold, "good", comps. Cause I want to make a strong case when I talk to my HML's...

I also think this may be a good prospect as asking is $69,000 and the sold comps don't have really great finishes... They even have those laminated tops in the kitchen...

I'm only asking because this has happened before, and I want to be sure if I pass up a potential deal cause there is only 2 sold comps, that it's the right thing to do.

Thanks,
-Manuel

Dustin B.

Don't know if any one said this, but from what I've learned, a offer below 80% of asking has almost no chance of being accepted. I've been offering above or at 80% of asking for awhile and haven't had anything accepted neither. I must admit, there's not that much houses to look at that will allow for an offer at or above 80%, but I think it saves a lot of time doing it this way, and I try my best not to waste my Realtor's time as I'm new as well.

In fact, to save my Realtor's time, I ask for comps, then I go and look at the property on my own in person (just look in the windows/go into the backyard if I can) and try to make my best guess as to if I will be able to submit an offer. Then if it looks like a good prospect, I tell her to meet me at the property so I can make my estimate. She really appreciates it, and I think it'll keep her hanging in there with me until I get the first one.

Just an idea to pass on...
-Manuel

The point isn't about me or you. You keep using, "you" and "I" but that's not what I'm trying to share. The point is other people take offense, and just because you don't take offense to something, doesn't mean others do not as well. We were discussing whether the comment was offensive, the answer is, it is to some, and isn't to others. It's not cut and dry as you try to make it seem. Respect for other people pain points should be kept in mind. Well, honestly, you can say what you want, but if you don't want to cause an uproar and resentment among fellow BPers, you shouldn't.

I'm sure no one here hate's poor people. It was merely just an ignorance to others feelings. Not done out of hate or anything like that. All I'm saying is, maybe, if you want to keep this forum a more welcoming, inviting place, you should hesitate to say racy comments. But feel free to say whatever you please. People just may not like it...

But I still think you and the others a still good people!
-Manuel

Matt Devincenzo & James H.

Okay, so first, just because something is a "very true statement" doesn't mean it's not offensive or to others, "vile". That statement is obviously going to tick off some people, everyone could guess that before even reading pass that comment.

If you told me my sister is, "fat", and her, "fat ways" would keep her fat I would be mad at you. But in defense you may say, "Well it's a very true statement. Why get mad at something that is based on fact?" Sorry if I'm so sensitive, but stating that true statement wouldn't be something I'd take kindly to.

And to both of you, it's not at all a true statement/generalization. And if you think so, then you generalized me too, and practically my whole family. Last year I made probably around $8k. I eat Ramen noodles and Spanish Rice everyday. Sound poor? But guess what, I don't, "go to the grocery store to pay bills... get behind on rent and can't find anyone to loan [me] 100 for the day because [I] don't have any friends with 100 to give... make financial decisions more with emotions than logic... spend what little money they get very quickly because they aren't used to having it - like a binge of a sort."

And neither does most of my family. The great majority of it doesn't.

But I'm glad you think that about me and my poor family, good to know.
-Manuel

How do you fix that problem of the cement protruding into the house (the first thing I show in the video)? Do you just make the walls come in more and cover it with sheet rock or molding? I'd really like to know, and if you don't mind, cost estimation? :)

Thanks,
-Manuel

Super awesome reply J Scott, thanks a ton! To elaborate...

I'm not sure what to say on if this house will be low end or high end. ARV is right around $145,000 so I was kind of thinking mid grade. Which I don't know what exactly that would be in terms of finishes. I know I want granite (1in) in the bathrooms and kitchen. And as for carpet/tile, I just want anything that looks good, which I know is all relative, but by good I'd mean, standard padding, with thick carpeting, and for tile, just something around the $2/sqft range that looks good. Soo, maybe I'm a little more off than I expected, but at least I'm making progress and getting closer to "good" estimates! I should be getting near perfect with the feedback you just gave me. :)

I should say (for everyone to know!) I did use this paper created by Will Barnard: http://www.biggerpockets.com/files/user/BarnardINC

What I did, is I went to Lowes and filled this whole sheet out, and those are the numbers I use when I'm calculating most of this stuff. So I actually went and seen how much good looking tile/carpet/light fixtures/toilets/etc... costs, and I wrote that number down, and that's what I used in this (and every other) estimation.

For labor costs, I already have people lined up, and I use what they told me would be a "safe" number for labor.

Oh, and yes, by "fixtures" I meant "light fixtures"! Thanks for pointing it out!

The background of this house, just in case anyone is interested, is the previous resident was getting foreclosed on, so she gutted, and sold everything out of the house. That's why it's so stripped already, which is a good thing! I found this out by talking to the neighbors.

Thanks again J,
-Manuel

So, I've made a video of my last house I checked out, a complete walk through (except exterior, which you'll just have to trust me needs exterior paint and some landscaping that I'll do on my own) and I want to let the other newbie's like myself see how my numbers come out.

I think I'm decent at it now, my first house took me a little over an hour to estimate, like 1hr and 15min. Now I can do a rough estimate in about 40 minutes! Also keep in mind, I've never closed a deal yet, so if that helps others nerves in my situation, I'm glad. And also, I'm sure more seasoned investors can give insight as to thinking my numbers are good/bad. This is all 100% to help others in my situation learn.

Let me give you one tip if you're a newbie like myself before we get into this! In the beginning I thought, "how would I ever account for every little thing?" Every electrical cover, light switch, door hardware, etc... This was important for me, but if I honestly counted all that stuff, I'd go crazy and it would just take a long time. So, for things like that, I just flat out estimate very high. In this example you will see for cabinet hardware, outlet covers, and vent screens I just simply budgeted $750. I may be wrong to do this, but first, the over estimation gives me more safety in case I under budgeted elsewhere, and it lets me keep my sanity while estimating. So... where to start...

Tools I bring with me
1. Clipboard with 2 sheets of paper.
2. Pen
3. Measuring tape
4. My phone (as a calculator, flashlight, gps, etc...) It's a Samsung Galaxy S3, highly recommend it...

So now, here is the video (it's the one on the right I believe):https://www.dropbox.com/sh/u6ucp6f4tnfnhsc/aNrYjaL929

Now, let me give you all of the info I wrote down on a piece of paper about the house:
Windows - All new (except big custom ones in the patio thing.)
Custom Windows - 2 (One is 44in x 83in, and the other is 47in x 52in)
Light Fixtures - 19
Interior Doors - 9
Exterior Doors - 2
Glass Sliding Exterior Doors - 2
Sliding Closet Doors - 3
Furnace - 1
How Water Heater - 1
Cooling Unit (Refrigerated Air) - 1

Besides this, I also have all the floor measurements for the floors! I do plan to leave the hardwood floors that already there in the hallway and living room. Everything except the bedrooms/closets will have carpet...

Here are the measurements:
MBR - 209sqft.
MBR Closet - 31sqft.
Bed1 - 112sqft.
Closet - 14sqft
Bed2 - 119sqft.
Closet - 14sqft.
Bed3 - 132sqft.
Closet - 23sqft.

Kitchen/Dining Room/Front Door Area - 229sqft.
Hallway/Living Room = 452sqft (Shouldn't need this number, but just in case...)
Bath 1 - 21sqft.
Bath 2 - 46sqft.
MST Bath - 66sqft.

Monetarily I broke down the flooring like this:
Tiled areas = 362sqft * $5/sqft(material/labor) = $1,810 I rounded to $1,800flat as I know I over measured in places and $10 bucks isn't much.
Carpet areas = 654sqft. * $2.8/sqft(material/labor) = $1831.20 I rounded to $1850 just cause it's a nice number.

Okay, now here is my numbers that I was happy with when I finished:
Total Flooring: $3,650
Appliances (Fridge, Stove, Dishwasher) = $2,200
Paint interior/exterior= $6,000
Kitchen Cabinets/Granite Tops = $4,500
Fixtures = $1,500
Doors w/hardware 9 = $765
3 toilets = $300
Bath 1 Vanity = $200
Bath 2 Vanity = $650
MST Bath Vanity = $950
Cabinet Hardware, Electrical Covers, Vent Screens, etc = $750
Heat Furnace = $1,400
Water Heater = $400
Refridge A/C = $5,000
Slider Closet Doors (3) = $285
Misc. $1,000
TOTAL = $29,550

After I get this number, I add 10-12% to it. In this case I added 12% bringing me to $33,096, which I round to $33k.

So already after doing this I know I forgot the 2 custom windows and that little problem in the ceiling of the patio thing with black mold on it... But, as you can see, that extra $4k from the extra 12% will give me peace of mind/safety from this. And don't forget the "Misc." bringing it to $5k, just for situations like these :D. Oh, and all of my over estimations on materials/labor and under estimations on ARV :D.

Some things to keep in mind
My city doesn't have much grass anywhere, so no grass would be put into landscaping, which is why landscaping won't cost me anything. I can cut down and haul away anything I need to. I can also get free rocks to lay in the yards, which is a common decoration in my city. Also, if you think all that rock will cost money to be taken out of the patio, think again! Cause I have no problem ripping it out myself. :D I want to be really hands on for my first flip, and the next one's until I feel comfortable.

So, guys/gals, how did I do? And to my fellow novices, I hope this has helped as I would've loved something like this!

ONE QUESTION FOR THE PRO'S!!!
How would you estimate the ceiling problem that has the ripped out panels and black mold? Without bringing a contractor, please. :)

Sorry for any mistakes in my writing or any left out info, I'm fairly tired... But I will fix it if brought up and answer any questions!

Thanks everyone,
-Manuel

Thanks guys. It really bothered me that people could act like that. I never met such a person before. I still really want to get the house over him, but still know not to offer more than what my numbers say I can offer. I think I know how to beat him in the long run though.

I haven't been able to see this house in person right away as I have a very busy life right now (mainly I got a new job as an auditor of a delivery company! Woot woot!). But, here's my plan of attack: This guy didn't get to the property until it was about 12 days on market, which means he is... not 100% focused on REI, or doesn't take it completely seriously. If I can just start scanning the MLS and get on top of deals asap and be the first guy there, this guy will miss out.

The negative emotions make me feel more drive, but I also know not to go outside of what the numbers say. I just want to be quicker, and more sharp than this guy so I can take what he wants. I really hope to see him one day down the road and be nice and polite, but not offer or accept any kind of friendship/partnership/deals.

I feel like it's me against him now, and competition is always good! :)
-Manuel

That is crazy! Thanks for the response! I was thinking like $3k, but I better budget for a tad bit more. Duct work is in place still. More like $5k I'm thinking.