All Forum Posts by: Bob B.

No need to call him.  He knows he's late and you need your rent money.  As my attorney told a loan client of mine "no pay, no stay"

Send him a pay or quit today and let him know that it's business. 

Chances are he's already looking for somewhere to move and needs a little encouragement.

Good luck.

Have you run this by your attorney?

Great story.

Good luck with the next one.

All the major systems will have to be replaced. HVAC alone will cost $6,000 a unit. It needs a new roof $7,000, electrical $3,500 a unit, plumbing $3,000 a unit, refinish hardwood floors $3,500 a unit, privacy fence $1,500, landscaping $750.00, interior mud work and painting $5,500 per unit, 4 new doors units and possibly 5to8 new windows maybe $5,000. The kitchens and baths are total guts, $16,000 for two kitchens and two baths. That all comes out to just under $75000, I added $10,000 to be conservative to get to $85000. 

Did you guestimate these costs or have quotes from reliable contractors?

These are way too high.

I'd get quotes from contractors at your local REIA.

Pay more than any of the other bidders thinks it's worth and you win. LOL

Sometimes the other bidders don't see the value that you do or you have a buyer on the hook.

It's getting to the point that buying off MLS gets into a bidding contest with highest and best.

Know what you are bidding on, set your max bid, don't go one cent over it and never look back.

Did you include the heloc payment in your assumption?

Is this that really nice rehab you just finished?

Has he set up a welding shop or just doing a little welding?

I would not allow a welding shop in the basement of my house and have a talk with him tonight.

I assume you required tenant insurance.

I would have a heart to talk with your realtor and let them know your concerns.  

Who is holding the deposit $?

I am not a accountant but I believe a single member LLC is a non entity as far as the IRS is concerned.

Toyin,

Are you an investor or dealer?

Your title says "investor"

Not everyone can or will wholesale hundreds of homes a year and I bet most wholesalers make less than $10K on average. The last wholesale property I purchased the wholesaler made $5,500, less carrying costs and he was happy.

I assume you have marketing, taxes and other expenses that us poor working for peanuts landlords don't. I like having 8 families get up every morning and go to work and send me a check each month. If I want to increase my monthly income them I just need to buy 1 property or raise rents a little.  I don't have to start over every month.

If it makes you a good living then that's great. It's not what you make but what you keep that counts.

It's not a get rich quick program.

If I had purchased 4 new homes in my neighborhood in 1983 at their retail price of $105,000 and rented them they would have been paid for a long time ago and bringing in rents of $1800-$2000 a month each (sheltered).  Along the way I would have been able to pull out cash (tax free) and had plenty of cash flow for repairs. These homes are now worth $325-375K and someone else would have paid for them. $1.2-1.5 mill

I don't think that would have been a bad investment.  Woulda, shoulda, but I didn't.

By the way, can you tell us how many $40,000 flips did you do last year?

I'm not bashing what you do but just because you didn't manage your properties well doesn't mean buying and holding isn't a a good business model.