All Forum Posts by: Mike Cumbie

Hi @Reuben Mathews

You aren't a vet are ya? If so your VA loan will be zero down and no PMI

 What's your late fee?

(Late fee) X 12 = additional yearly income from the property.

Follow your lease to the letter and don't chase them, let them come to you. Just follow your notices even when they call on the 4th (We are putting it in the mail).

"Ok I will add the late charge on if it is not here by EOD today". Then either late fee or you will find they start driving out to you to get it in your hands.

People run when being chased, but go after things they want (to not get evicted). You have the control until you give it to them by chasing them all over and knocking on doors and calling and leaving messages and emails.

"24 units on a well and septic - advice?"

Cheese platters for Christmas for everyone!

Hi @Christian Beyer

I guess I am the only one who disagrees. Contractors should be paid as soon as the work is done and they sign a lien release. This allows them to pay their people and move to the next property (for you or someone else). It is sort of like 5 friends running a bar. Unless one person is actually "In charge" it just causes problems. One person is "back end manager" and one is "front end manager" but they all report to the "General manager". There has to be one person who makes the decisions and has the most on the line.

With one person finding the property and securing it under financing and the other spending countless weeks/months repairing it and putting materials on net 30 accounts. Who decides that the price should be reduced? If your 100K money is on a 11% loan and his 100K is on 22% credit cards and employees wanting to get paid on Friday, he has more of an interest in a quick sale than you do. In my opinion contractors wanted to run a contracting business. That's why they got into roofing or kitchen remodel for, I am all for being a client to a good contractor. But their motivations are different (generally speaking of course) from an investor.

I would recommend getting everything on paper and wish you the best of luck!

Hi @Roosevelt Archie

Generally speaking I would say no.

You are not going to find a good contractor who has the time to go to 30 properties in a week and make quotes on each of them from the ground up. So that then you can make a bid on the property and hope to get it. They would go broke pretty quick doing all of their work for free.

I would recommend start by analyzing deals others have done and get a good idea on your own on what costs are in your area. Not to be totally right but to have a ball park idea. Once you find one that looks like it is a really good deal (that 10%) get you contractor in there. It helps to offer to pay for a quote until you have done some work together.

Once they get the feeling you are wasting their time or having them work for free I will be hard to get them to come out and quote anything. Think of the boy who cried wolf.

Good luck and welcome!

Personally I think if I buy it from her "as/is" then I am buying it "as/is" and I am picking up all of the risk/reward for the project. If she is maintaining it and she wants me to "project manage" it, then she is the owner and I am the consultant/contractor and she would pay for that service. If she wants to have me buy it and then she invests in the flip (money/time) that is fine as well and she can have a percentage (most likely on money IE 12% loan return with a point). However me buying as is, then putting all my time and money into it and then splitting the profits with someone who I already cashed out of the deal, doesn't appeal to me personally.

Your Mileage May Very though and good luck in whatever you decide

Hi @Jesse Stanley

First not a lawyer or giving any sort of legal advice, everything stated is strictly opinion, your mileage may very

Congratulations on your first deal. Now the hard part, current renters. I had a very close example except I was the buyer. Problem from the renters perspective is he doesn't have to let you in the house any more than he does me or anyone else. Why would he really? I mean the elderly current landlord most likely leaves him alone, hasn't bothered him in years, why show it to someone else? They could raise the rent, want to kick him out? Say no more pets.

He actually could have a case for you interrupting his "enjoyment of the property" if you are under contract with the actual owner. Based on his lease terms he may have a "Owner can enter the property with 24 hour notice" or something like that. However that is the owner or repair people, she has to give them the notice (provided it is in their lease) you can't. So what you can do is based off her terms with him, state laws and how much he wants to help you.

You may try making him want to help you but from my experience until you own the property, you have no rights to the property at all and only the current owner does.

Good Luck and I would love to hear other thoughts or ideas.

Hi @Brandon Schlichter,

If the tenants are not maintaining the property and following the treatment protocol you may need to look at how long they have in their lease. I agree with @Jacqueline Carrington on this one. Self treating with chemicals on your own would concern me when it came to liability.

Not a wholesaler but I would think about 3 seconds after it was under contract. You locked it up now you want everyone to come and bid for your paper.

I could be wrong of course as it is not my area of expertise.

Agreed, don't risk Grandmas money, risk @Charlie Fitzgerald's money. I'm sure he would ask the questions and line you up with the right people that grandma might not know. Save grandmas money for when you have plenty of success.