All Forum Posts by: Paul Krause

Thanks for sharing your story!  Since you had zero acquisition costs, curious how much did the legal bills, permits and local taxes  added up to while you were repositioning and rehabbing the property?  Thx!

Great job on the rehab.  With those numbers would renting it out make sense?  Good luck selling it quickly as well!  

Hi Amra-Faye - You stated that you will "...contribute funds for the rehab" that makes you the construction loan, in essence. So make a proposal to your partners for what you want out of the deal, terms and conditions that you can live with (rate of interest, origination points, equity share %, etc.), including covering the costs to obtain the HML.

@Max Valdes Maybe you can find out more about what the seller really wants.  Maybe they just want another investment property and if that's the case an exchange would be more suitable than a cash offer.  

If it was me I would rework the numbers and make the tenants pay for water and trash and bill them separately by square footage since you on't have a separate water meter.  With trash there is a number of ways to spread out the costs - sometimes its as simple as charging by the barrel size each unit is assigned, other times square footage - that will reduce expenses to you.  Of course you need to follow whatever protocol you will use after acquisition to get the tenants on the new utility requirement.  Good luck.

Have an opportunity to acquire 2 co-joined lots.  Strategy would be to pour 2 slabs, 1 on each lot, and affix 2 pre-fab houses on the new slabs as an alternative to building from the ground up.  Interested in companies that builders/flippers/investors might have used in SoCal.  The subject property is in the San Fernando Valley.  Thx-PK

The contract is the final word.  Whatever was agreed to by both parties, each party has to perform as the contract states.  Review your contract and what scenarios let the seller out of the contract.  read it thoroughly and any provisions you don't understand should be brought to your RE Attorney ASAP so you can be confident about what steps you'll take next.  Good luck.