All Forum Posts by: Preston Dahl

Okay, very specific and quick to the point remodel question....@Brandon Turner, I have heard you talk about oak trim "throwing up" all over the house.  I live in an area where most of the investment properties are covered with it. Thick 100 yr old, 6"+ with detailed moldings.  What do you do with this stuff? It is a small detail but removing and updating with simple, modern white trim makes such a huge difference. Do you go through the trouble of removing all the old oak trim and installing new? Or, do you leave it in place and try to repaint the walls in a way that makes it look better?

Preston

@Ed Emmons - thank you. My current lender said they do require a 6 month seasoning period. She recommended putting a heloc on the property for 6 months until I can lock in the conventional mortgage. Not ideal, but a path forward. I will keeping hunting for lenders that will do this.

Preston

I have enough cash to do a cash purchase of a real estate property in my market. I will be buying a fixer upper rental property to hold for a long time. I want to do the BRRRR strategy so I can get access to my cash after the property is stabilized and build my portfolio.

If I purchase the property for cash and go to finance after stabilized, do I still have to wait 6 months for the "seasoning"? Wouldn't this just be a "finance" as opposed to refinance given the property was never financed in the first place?

Anything else I should consider on the outset of this deal? 

Best,

Preston

Thanks for all the responses everyone. I think I will be doing a portion of it myself and a portion of it will be hired out. I close next week so wish me luck!

Wow. So many valuable, helpful responses. Thanks everyone for chiming in.

@Sarah D. That is such an awesome example of the CEO taking out the trash. Of course he does not plan on doing that very long, but its where he's at now. 

@Linda D sounds like you have a really interesting business model. I have a few people in mind and have already reached out to them that I think have a good attitude and work ethic. I am also hiring a 60 year old retired guy who used to build spec homes. I think he is bored and looking for something to do and will hopefully be a good teacher. I also plan to hire out hvac/electrical/plumbing. 

@J Scott complete side note. I really thought your ideas about how to analyze a market were very interesting. Would be fun to learn more sometime. 

Well I close next week and will be doing a combination of hiring out and self-performing. My bank gave me 45 days no mortgage payment so............Wish me luck!

I've spent the last two years remodeling our 1912 craftsman bungalow home. This process has done two things. One, help me discover I love carpentry. Absolutely love it. I grew up a farm kid and have spent the last 10 years in an office doing sales/marketing. I enjoy and miss hard work and the process of working with my hands. And two, it started my curiosity for real estate investing and sent me digesting everything I could about the real estate game for the last 18 months. As

we all know, BP is fricken awesome and authentic in their education.

In two weeks I close on my first real estate property (picture below). It will be a buy and hold that needs a lot of work. I estimate $7-10k of rehab. (I have been using J.scott's estimating rehab costs book). Everything I read says that it is best find a good GC and hire out all the construction. Being a businessman I understand this logic. Delegate out what you are not good at (or can be easily hired out) and work on scaling your business.

But is anyone on BP self-performing their rehab's? As in having a tool in hand doing 50+% of the work themselves and hiring out a few trades (plumbing, HVAC, carpet, painting, basic demo help).

I should also note I do not like my job and plan to leave in the next year. I have debated starting a remodeling company or just self-performing my own flips for cash flow.

Would love to hear your feedback BP!

PD

I've spent the last two years remodeling our 1912 craftsman bungalow home. This process has done two things. One, help me discover I love carpentry. Absolutely love it. I grew up a farm kid and have spent the last 10 years in an office doing sales/marketing. I enjoy and miss hard work and the process of working with my hands.  And two, it started my curiosity for real estate investing and sent me digesting everything I could about the real estate game for the last 18 months. As we all know, BP is fricken awesome and authentic in their education. 

In two weeks I close on my first real estate property (picture below). It will be a buy and hold that needs a lot of work. I estimate $7-10k of rehab.  (I have been using J.scott's estimating rehab costs book).  Everything I read says that it is best find a good GC and hire out all the construction. Being a businessman I understand this logic. Delegate out what you are not good at (or can be easily hired out) and work on scaling your business.

But is anyone on BP self-performing their rehab's? As in having a tool in hand doing 50+% of the work themselves and hiring out a few trades (plumbing, HVAC, carpet, painting, basic demo help).

I should also note I do not like my job and plan to leave in the next year. I have debated starting a remodeling company or just self-performing my own flips for cash flow. 

Would love to hear your feedback BP!

PD