All Forum Posts by: Nathan B.

Wide planks

Walls already gutted too?

recently seen, 2400 sq ft fully gutted and all new hvac with the basement.. it was about 6-7k, all new ac unit, furnace, everything new. Tho, the hvac man had previous history with the man.

looks like a horrible drywall job.   The corner trim wasnt even mudded. And rattled loose. Wonder,  if that one entrance way board of the framing isnt loose too. Hence, the other entrance way cracks?

Hello,

I am not new to real estate investing, or construction.  I have been mentored by watching and helping gut commercial buildings, houses, and rebuild them.  I have done this for the past 5-6 years.  Ive learned a lot, about the paperwork, construction, building code, and etc. 

Though, I have not ever had my own investment in my name. Nor, have I've had the money to do anything with. Regrettably, I have even created really poor credit. I am just being brutally honest. 

However, I am really investor minded.  I've studied books of business, stocks, real estate my whole life.  Really a hidden gem of a raw investment opportunity. Well, that is what I'd like to think about myself.

I am posting here, because I know they are private lenders, investment bankers, and lending professionals all around this forum.  I am being upfront about my situation, and honest.  

I really, really, really love real estate.  Going to view a ran down houses that was built 1900. That will require tons of demo and walls opened up really excites me.  The uglier the more exciting. I also, love the fact that real estate investing adds great value to a community. 

I am nearly flat broke, poor credit, but I have the knowledge to create amazingly designed houses with open floor plans.  Weird and counterintuitive, I know right? 

Ive always wanted to build big modern designs on the cheap. Such as, double headed walkin showers. I can do a lot of the work on my own, and act as an general contractor on existing residential properties.  I love the new modern design of building table tops around washer and dryers.  Then, gutting the upstairs master bedroom floor for laundry chutes leading to the utility room tables.  I know paperwork, of getting permits, plans, and approvals based on code.  Ive seen houses fully gutted and rebuilt.  Moved stairways, cut rafters, and joined or replaced. Building soffits around over hanging items.  Even, understanding of the main beams load to have columns stacked to keep weight transfered. ( tho, ill let the architecture worry about this at all times). Understanding, about neutral colors and flat paints. How you never put a cabinet above the sink, and how islands have electrical outlets part of code.  How framing is 16" inches apart.  I am just displaying a little knowledge that i have learnt about the real estate world. 

Though, I feel like I will never get a chance to do what I love.  I have looked, looked, and keep getting the answer no for 100% hard money loans. I understand about skin in the game, but ive seen 100% hml's personally. I know, it does exist. 

I was wondering in this small world, if I could get lucky enough to build a relationship with a real lender that is flexible in my situation.  I can find reo properties for 20-30% ltv's.  And, with the sweat equity I can put in.  Well, I can save a lot of money, and have things looking amazing.  Ive got pictures of past projects.

I would even be willing to work out a specialized loan in the favor of lenders. Such as, HML + Profit sharing on the first deals or two. Idk, the numbers are there and i really love this game, and would do it for free, if someone would let me.

Thank you to the bigger pockets site and community. Sorry, for the SUPER LONG "TL;DR".

Thanks,

Nathan

Missing a lot of the house math.. which streets is the closest on tower grove south? How many sq ft? What does the house look like (as in how nice are the details of the outside and inside?)

I assume the property is probably about 3500 sq ft. Give or take 500ish ft.  Idk where civil life is off hand. So idk which street.. the streets there make a huge difference. 

Sounds like it is going for about $50 - 60$ sq ft.  I guess not too bad. Though sounds like the place will need a lot of work to get $600\month a unit.  Not only those problems you stated.  I assume the units are a very old design.  Which u may or should update that too as well.  

How long was it on the market for? If for awhile. I would of probably offered about 20k less or more. Depending the street.  

Amazing how the street makes a different there.  Gun shots all night some nights surrounding the area. 

Gl

Though, however, some parts of the tower grove area are a flippers gold mine. Maybe not so much a renters idk. Ik they are trying to convert the renter units into single families.

Hmmm, ive seen houses boarded up before next too houses redone.  And they sell for amazing comps.  However, the neighborhood is solid and all brick with new deveopment everwhere.

Are you sure that one house brought everyones comps down that much? 

Could it be another issue? Maybe the neighborhood was overstated in the first place? And, no offense, really. Though, maybe the fix n flip wasnt up to what the agent expected?  

Idk a combination of some factors probably.  I just dont see that house knocking comps down that much..

Its just boarded windows. I would get some more opinions, before dumping money into another persons property.

Hope all works out well.

Gl

Also, lets say. It really is just the boards on the windows.. and lets say the man doesnt want to cooperate on any terms.  During the open house, listing, or a showing.  Would it hurt to just unscrew the boards and place them in the back yard? Then put them back up? 

Not condoning anything illegal. Just a scenario.  

i would build income through the real estate, Flipping or renting.  Then, you can take your profits to invest into the stock market.  

Its a win/win situation.  Over time you will be able to compound your real estate portfolio and stock portfolio.  

This is just in my opinion.  You will see growth a lot faster through real estate in theory than buying and holding stocks.  The real estate can fuel a lot of compounding to your stock portfolio. 

Though, look into a hard money lender.  All you need is like 10% down and you could easily get funded for purchase and rehab money to flip a house, or rental.

They dont report to your credit, if you somehow mess up and lose money on the investment.  They just take the property, and you lose the 5-10%. 

Idk your real estate knowledge/background. Learn about how the closing works. Learn about REO properties. Learn how permits work in general.. (such as. Get a demo permit. Always getting an architecture to draw up plans. So, you can submit them to city hall. This allows you to properly tear down walls, and rebuild to the plans approved by an architect. So, added dimensions will be correct for a future sale. Framing, electrical, hvac, plumbing drawings and permits are also required, if you open the walls and touch and move the 'subject at hand'. however the trades will draw up the permits and submit them. They are liable if there is an electrical fire and etc.. and, they all need to get a "close inspection" before drywalk covers up their work. Then, sometimes you need a drywall inspection before the mud is applied. You need footings and deck inspections too, if you redo or build these things. Kinda is included in the framing inspection.

*if you dont properly follow permits and code of your township.  They can make you re-open up the drywall and redo the work again."

Becareful with and always clean up lead paint, and other hazerdous materials e.g.  if you scrap lead paint off a building.  Epa can come by and citation you, if the area worked on is bigger than a 20ft sq area.. fees, license would be required if caught, etc.. 

Then, on top of that you need to understand construction, if u do a lot of the work yourself.  

Learn about basics of a room to be a room.. such as a bedroom.  Needs to be at least 10x10, one closet and one window to become a bedroom.   To have a bedroom in a basement, usually will require the same conditions plus the egress window, if window will be at ground level... 

It becomes simple over time, but the physical labor is the hardest.

gl seems like you are on your way.