All Forum Posts by: Nadia White

@Rhys Royales, unfortunately, we do not share the documents we use (for liability purposes). But there are a lot of examples on the internet. I would recommend you pull one from there, modify it to your needs and submit it to your attorney before you use it.

OK, I understand that you are somewhat scared. Everyone has been for their first deal. But it you start to doubt even your attorney you should not be in this business. There is a risk in everything, but I doubt that your attorney would go behind your back  to steal your deal. Unless, of course, you have chosen the most unethical attorney on the block. Take a leap of faith and get into action. 

That is true. Only attorneys can do closings in NC.

Hi @Justin McElroy. Phew!!! It's like the question, what came first, the chicken or the egg, right? First, let me congratulate you about getting your hands dirty, Not everybody is courageous enough to take action.

I understand your reluctance to put real estate under contract if you don't know your numbers. 4 units is still considered as residential and you should be good to go with residential numbers (although I would be very precise in this case). Could you find an experienced investor in your area who would be ok to help you out, even if you have to split the profit? Or could you at least make a list of the needed repairs and submit it to someone with experience?

I would also recommend that you spend time at Lowe's, Home Depot and such and start to look into all the material's prices. Don't forget the small stuff. It will allow you to get an idea of what things cost. It will not be totally right, but close enough. 

You could also get to know a GC and offer to pay him for an estimate. Be careful though, all GC's are not, how to put it... straight in their boots. Most of them are good people, but some could take advantage of your lack of knowledge. Once again, get in touch with people who have experience and can recommend someone. 

Over time, you'll gain experience and you will be able to estimate the repair costs without help. There is also a good book about it in Bigger Pockets. Visit their store and you'll find it. (the title escapes me now, but it is obvious when you read it).

Good luck and success!

@Account Closed, that is a bad place to be! I feel for you and your brother. You can of course always take the tenants to court. But, besides, the stress of a lawsuit, if you win it, you will face the burden of having the judgement enforced. If those people don't have money, it's very unlikely that you will ever see the green stuff to make the repairs. It is obvious that they don't care, even about themselves (who wants to live in a trashed house but people who have no pride?). If it were me, I would get them out of there asap and with asap, I mean like yesterday. Stop the loss. I don't know the numbers, but it looks like your brother is going to have to lick his wounds and move on. I'm sorry for that... but it shows once again that paying a good property manager and setting the right expectations from the get go are no waste of time nor money.

Good luck!

Congratulations for holding your ground and your perseverance, @Jesse Klein. I wish you many more good deals to come your way!

Hi @Jonathan Morning. Good job to find a piece of property like that! Here is what I do in the case of vacant properties: I do NOT send a letter. I call. I call until I get the owner on the line. And if the property is really worth it, I will call (with permission) on a regular basis until the owner accepts to sell. I do not take no as an answer. For the analysis of the deal, I can't help you with the info you gave and for owner financing, you just ask to the owner. The worst answer is...no. But you already know what I think of a "no". :)

Good luck!

Ohoh!!! red flag, right there. Your GC has been paid on a regular basis for work that has not been completed yet. I usually pay my GC for material upfront (I understand they have a tight ash flow too), and I pay them after completion of the work. I repeat: after completion of the work. Guess why... I have been left alone at the altar, with unfinished work. Once. Not twice, once!! Because I have that policy now. Besides, if you want to have the possibility to get back to him for any wrong doing, you need receipts. You need receipts for the IRS. You need receipts when you sell the house because, if your GC comes back saying that you never paid him, you could face liens and law suits. 

This is only my opinion, but even with going a little over budget and into my contingency funds, my answer to that GC would be a big, fat NO.

@Cassidy Burns, I hear your pain and can feel it! lol. But what @Account Closed told you is absolutely the truth. It may look expensive to have someone do your bookkeeping for you, but it may be worth it. It takes hours and hours to rectify mistakes and if you don't like it, why would you do it?

On the other hand, if your finances do not allow you to hire a GOOD bookkeeper, then your only alternative is to learn it yourself. A way to keep up with it is to set aside 1 to 2 hours/week in your calendar, just dedicated to bookkeeping. Block that time in your calendar just as you would do for any other appointment and treat it as such. I know... no fun, but there are so many things in life that are not fun and that we have to do anyway. 

I have an extensive banking background, so it was not difficult for me to learn how to do bookkeeping but I had nevertheless an expert setting up my basics in Quickbooks for the kind of business I run. I also have a regular meeting with my CPA to see if I am on the right path. Each his own specialty, right? It's worth the investment. 

But, sorry to say, you'll always have to have an eye on your finances if you want to survive in this business.

Courage! You can do it!

@Cassidy Burns, I hear your pain and can feel it! lol. But what @Account Closed told you is absolutely the truth. It may look expensive to have someone do your bookkeeping for you, but it may be worth it. It takes hours and hours to rectify mistakes and if you don't like it, why would you do it?

On the other hand, if your finances do not allow you to hire a GOOD bookkeeper, then your only alternative is to learn it yourself. A way to keep up with it is to set aside 1 to 2 hours/week in your calendar, just dedicated to bookkeeping. Block that time in your calendar just as you would do for any other appointment and treat it as such. I know... no fun, but there are so many things in life that are not fun and that we have to do anyway. 

I have an extensive banking background, so it was not difficult for me to learn how to do bookkeeping but I had nevertheless an expert setting up my basics in Quickbooks for the kind of business I run. I also have a regular meeting with my CPA to see if I am on the right path. Each his own specialty, right? It's worth the investment. 

But, sorry to say, you'll always have to have an eye on your finances if you want to survive in this business.

Courage! You can do it!