All Forum Posts by: Mitch Smith

@Justin Polston 

Hi Justin. I am curious to hear who would have referred Curtis Hansen. Its interesting. I have had a couple people contact me saying that they received that same referral from a local agent. Seems they have been working together to steal my money. Who knows how many others have been hit with the same issue. 

Hi Collin. I typically set up my draws from escrow directly to my contractor. Most title company’s will charge a fee for each draw. If you are working with a contractor that does not have a track record with you, use caution when deciding on the percentage to give out per draw. The tendency might be to save money on fees to do less draws. But trust me, if the contractor runs off with your money, you will be glad you paid him less upfront and paid for the extra draw fee. My title company will wire it directly to his account. Good Luck. Mitch

@Lane Kawaoka

Thank you Lane. 

I appreciate your input and up until a few years ago I would have agreed. However, The San Diego market is much more difficult to get involved in. Until I discovered out of state investing and worked hard to overcome some the obstacles that you mention, I really wasn't even able to work on my passive income. Buying rental properties at $450,000 if you are lucky, and getting a 6% return is just not worth it to me. I have established a great team of contractors, title, property managers and boots on the ground to help me run my business. And I must say, the credit goes to them. This is the first mishap that I have had and at it was because I broke one of my own rules.

I became emotionally attached to this property and wasn't patient enough to wait for a trusted member of my team to do the work.  

Although it was an expensive lesson, I learned a tremendous amount and I can guarantee that I will not make that mistake again. The price point of the market in Indianapolis at least allows me to be in the game.

@Matt Smith

Hey Matt. Welcome to BP forum. I am a San Diego native as well. As far as a live in flip, are you thinking of occupying one side of this property after the work is done? If so, I would looking into a 203K loan. Its an FHA product that allows you to roll your rehab costs into the loan. Its a great option that is available if you are occupying the home. You can use this loan for any property from 1 to 4 units.

@Fernando E.

hey Fernando. Id be happy to share with you. Feel free to PM or email me when convenient.

Thanks,

Mitch

@Nicholas Hamblen

Hello Nicholas,

Welcome to BP. Good job jumping out there with the first post. You will find a wealth of knowledge and experience in this forum. Good luck and let me know if I can help in any way.

@David Chance

Thanks David. Great idea. 

@Daniel F. Harb

Thanks Daniel. I appreciate the thoughts. It was an expensive lesson but definitely moving forward. I have been very fortunate to have good luck up until this point with my contractors. This will definitely help me be more aware. 

Thanks,

Mitch

@Ray Lai

Although I am not happy with this wholesaler, or the other two real estate agents that I used as references, I only gave out the contractors name to prevent anyone else from getting screwed by him. Rather than blast these names out on the forum, I would be happy to share with you the info by PM. 

My intention is not to hurt anybody's business, but merely to protect others from being in my same situation. I was very disappointed that this wholesaler was not willing to split the difference with me after such a strong recommendation. I purchased two properties from him last month. He would have made the money back within a month on future deals with me. Needless to say, I know where he stands now and I will no longer be doing business with him. I simply wanted to share my experience to help others watch out for the same.

Mitch

@Steve Kim

Hi Steve. It is not my intention to ruin livelihoods on Bigger Pockets. I simply want to share my experience to hopefully keep others from making the same mistakes. Feel free to contact me by PM, email or text and I would be happy to have that discussion.

Thanks Steve.

Mitch