All Forum Posts by: Phillip S.

***Begin rant***

Just needed to get this off my chest.  Tenants these days don't want to pay for a darn thing.  They don't want to pay an application fee, they don't want to pay a deposit, they don't want to pay for utilities or anything.  They just want to move right in with no skin in the game, and then not even pay the rent.  This is what happens when there are more houses available for rent than tenants to fill them, and desperate landlords looking for anyone with a pulse to rent to. 

***End rant*** 

@Andi Sjamsu  Thanks for the post.  I agree the more offers you submit the greater the chance you will eventually get a "yes."  However I suspect most Realtors don't have the patience for that especially if the property is like $50k and they don't stand to make much on the transaction to begin with.  

@James Wise  This whole thread has made me realize just how different the economy is today compared to just 3 or 4 years ago.  Not that long ago I could fill out a few forms online and within hours I would have 10 voice messages from brokers, agents, banks, contractors, you name it wanting to stick their hand in the cookie jar.  Now, they won't give me the time of day, because they are too busy catering to the big money investors.

 Personally if I was buying a house that I know was rehabbed and flipped, I would demand a home warranty or some sort of guarantee from the seller.      

@Bryan Devitt  Thank you very much for all the info, and for taking the time to educate me.  I expect if/when I get to the point of actually bidding out a real rehab I will run into some sticker shock.  Honestly with what you're telling me I don't know how these flippers make a profit unless they are rehabbing $500K+ homes.  They must be cutting corners somewhere or hiring cheap (and probably undocumented) labor. 

So even the cheapest GCs are going to charge a 50% fee on top of the labor and material cost?  Or are they factoring that fee into their bid? 

Hold on a second.  Do GCs really charge that much per week as a management fee on top of the 10-15% profit they are already making?  If so I am in for a rude awakening.  What if the rehab takes 6 months and they drag their feet doing it?  I could be misunderstanding something here....

 Thanks DeWayne.  This all sounds great in theory, but what if your market is so competitive that any offer that has an inspection contingency doesn't stand a chance of getting accepted?  In fact one of my Realtor contacts told me he rarely (if ever) puts an inspection contingency in any offer he submits.  This is where inexperienced investors like myself (who don't know enough yet about construction costs) can get eaten alive.  

@Michael Evans Point taken. You are correct - when it comes to rehabbing homes I really don't know what I want. My assumption is I would need upgrades/features that are similar to what other comps in the neighborhood have, if I have any hope of selling the house for close to ARV.

@David Robertson  Thanks for the helpful suggestions!  I have purchased the book and plan to begin reading it soon.