All Forum Posts by: Brett O

Hello BP, I haven't posted in quite some time! I thought it would be interesting if we all shared what our rehabbing/remodeling process looks like. I am currently on my fourth investment property, my strategy is buy and hold. My rehabbing process is usually to go in and a large amount of the work myself. My last rehab took me almost a year because of this. On my new project I am looking for a good balance of keeping costs down while at the same time not killing myself by trying to do Everything. I have gotten quotes from general contractors, which would make it pretty much a hands off rehab for me, and I really like the idea of it being hands off. The problem is that the general contractors want way more money than I can justify. When I can get the house done for about 5k in materials and they want 20k to do the job I just can't bring myself to pay it.

I would love to hear what your remodeling process looks like, maybe I can get some ideas to find a happy medium!

-Brett

Hmmm the bulletproof lease looks interesting, I wish he had an option to download it. It says it can take 5 days to ship, I have to have my lease ready to sign by Tuesday... It is just a PDF file on a CD correct?

I have been looking for a software program that will walk me through creating a lease but I have been coming up empty handed... surely someone out there makes a program that takes you step by step through creating a lease, kind of like turbo tax does with your taxes. Just answer simple questions and it would give you a lease at the end that you could print. Does anyone know of such a program?

Thanks John, that helps clarify things for me. So if I were to make an offer directly through the listing agent instead of using my buyers agent would the listing agent get both sides of the commission, or would HUD just not have to pay a buyers agent commission thus making the net offer look better to them?

So John Chan, you are saying that when my buyers agent puts the offer in he can choose weather to give himself a 1% or a 8% commission? I never knew that. I always imagined it was something like a fixed 3%, or a fixed $1250 or something. I'm in Ohio if that makes any difference.

The way I'm looking at this according to what you said is I find a stellar HUD house, I put my offer in, and because my agent chooses to give himself a 6% commission I get outbid by somebody else. Maybe the person that outbid me made the exact same offer but his agent only asked for 4% and that's why he won.

If that is the case that really annoys me...

I would love more clarification/opinions on the topic. As much as I currently like my buyers agent I would have to consider weather to use him or not if doing so is hurting my chances of winning a HUD bid.

I have been searching all over the internet and can't find the answer to this... Hypothetical situation: Person 1 puts a bid in on a HUD property for $30K using a buyers agent, person 2 also puts a bid on the property for $30K BUT uses the listing broker. Both offers are cash. Will HUD be more likely to accept person 2's offer because he used the listing agent and HUD doesn't have to pay a fee to the buyers agent? I know HUD always goes with the best net offer (most money in their pocket). Would the net be better for HUD if someone didn't use a buyers agent???

Cheers to whoever answers this as I failed to figure it out after extensive google searching...

Thank you BP! :D

Yes the closing was fast! It took all of 5 minutes, not what I was expecting at all. I thought I'd sit down with of people and be there 30 minutes or so. Not the case at all, it was just the listing agent, me ,and the HUD guy.

Rehab wise I've tore out all the carpet except in the Garage/Family room, torn up a bunch of half rotted tack strips, which was a pain because they are nailed into the slab. I took down some wood paneling, took off all the interior doors, and I've been filling the garage/family room with all stuff I'm tearing out.

The house is still winterized and the water off, and I may just leave it that way all winter so I don't have to heat the place when I'm not there. I also got the gas turned on... furnace works good so I'm happy about that! About two weeks ago I called the electric company to get my electric turned on and they said it had been off since Sept. 2007 and the electric system would have to be inspected before they turn it on. So this was one of the first times I was going to the house after I closed. I get off the phone and head over there, I put the main fuse block back in the electric box, and to my supprise the power was already on all along! Go figure that one out. I already have the power in my name but I never had it inspected. So I'm hoping the next time they read the meter they will see I'ts being used and send me a bill, and forget about this inspection nonsense. Haha I doubt it though. What do you think?

I just purchased my first property not too long ago, and I'm looking for a book that covers from start to finish how to rehab a house. I would like a book that recommends what projects to work on first, what paint colors to choose, what carpet to buy, etc. I've been looking on amazon but it seems most of the rehab books are mostly dedicated to finding the deal. I already bought the house, now I just need a good guide to fixing it up.

Thanks for any recommendations!

Just bumping this thread, I close on the house tomorrow!