All Forum Posts by: Paul Smythe

Our group has a couple of projects going on right now, but we are quickly realizing our network of contractors is not nearly as comprehensive as we would like it to be. I am looking for a quick, reliable, and reasonable contractor in the Atlanta area. I have a halfway complete home rehab that we can treat as a trial run.

Shoot me message and we can discuss more details.

@Brad Sanford @Account Closed

The property is south of I-20 near the AL/GA line

My group has a MHP that we are working on getting under contract in Alabama (just under 500k). Does anyone have a good recommendation for an 80/20 loan from a bank or credit union willing to lend on a MHP in Alabama?

I was curious to see what others think about this. I have a condo with an HOA that limits the number of units that can be rented to 25%. In your opinion, does that hinder the value of the property or does it enhance it?

There are two conflicting thoughts here, to me:

-One says that you are limiting the number of people interested in the condo because they won't be able to rent it out, thus lowering the prospect pool and price.

-The other says that it increases the appeal of the condo for someone who wants to live in it because they are not going to have a lot of turnover (i.e. consistent neighbors, other people who care about the community).

Ultimately I think the limit hurts property values, but I am sure there are factors I'm not privy to. Thoughts?

If the numbers work like you are suggesting then I am sure you can find a lender who will do that deal. 25% LTV is a safe investment for a lender. I would start calling around and talking to some commercial lenders to get the ball rolling.

I am exploring managing my rehabs instead of a general contractor and wanted to get some recommendations for the best places to find reliable subcontractors. I've been thinking about using sites like Angie's List, but I'm expecting those contractors will be more expensive. How do you guys/gals find your subs?

@James Danchus I don't think 40/hour is too difficult. It definitely does depend on the areas you're in. I've had streets where I couldn't find a single property to add to my list and I've had individual streets where I add 10 houses over the course of five minutes. It all depends on where you're looking. Are you targeting nicer areas?

@Dean Hulsing ultimately you know what is best in your situation, but if you want to be able to use those funds to invest in other properties it might be worth refinancing. You'll get 75% LTV, so you'll basically get all of your cash back and end up with a cashflowing property.

@Armen Zakarian I would just look for the big lenders in your area. Bigger pockets has a good list of lenders in different states: https://www.biggerpockets.com/hardmoneylenders.

I would avoid Do Hard Money. I haven't read good things about them. Just go for the big lenders around you.

@Robert Renne First things first, what the seller’s agent thinks should not concern you. Their goal is to get the highest price possible and to close on the deal. Ignore their opinion. I don’t know as much about your agent as you do, but you also have to look at where their interests lie. They get a commission if you close on the property, so they want to make sure you close. Be careful trusting your agent. I’ve done it before and regretted it. I’m not saying they’re all bad, but they get paid when you buy a house. They don’t benefit if you back out of a deal.

Also, if you’re offering more than the appraised value on a property you may want to re-evaluate your numbers (especially if it’s an investment property). I would be very careful paying more than the appraised value. As a general rule of thumb, you want to purchase buy for 70% of the value, and right now you’re at about 102%. There’s a good chance this isn’t a deal unless there’s some other factor in play here.

If nothing else, I would stick to the $114k price that the appraiser suggested. Paying more than the appraised value doesn’t sound like a good investment.