All Forum Posts by: Michael Hassell

Something along those lines, pour a relatively small rebar re-enforced footer, jack the floor to proper height then install a 4x  post. remove the jack and let your new post assembly support the weight.  relatively quick and economical.  The pic doesn't show it, but I would probably use something like a Simpson strong tie to support he post top and bottom.  the bottom support would go into your wet concrete, the top and bottom would be nailed to the post.

.....check the jurisdiction of course!

As posted earlier by someone else earlier, deals that meet or approach the 2% rule seem to be found in less desirable areas.  It can be a rough neighborhood, or in an area that is further from the city center.  You will probably have difficulty finding them in the "better" close in neighborhoods.

I don't typically find my fix and flip in the same area as my buy and hold...though that is just a current trend perhaps.

With all that said if you hit the right area that can all be turned around.  In South Dakota during the Oil boom there were stories of camper trailers parked in Wal-Mart lots earning incredible returns.  Same recently as refineries are being built in parts of Texas (so I hear). 

Trends and guides like the 2% rule are location dependent to some degree.

 Not necessarily, this is a creative form of financing/purchasing.  You're only limited by whatever is legal.  So it is entirely possible to do this without a down payment or with a low down payment.  I once picked up such a property by just paying the first months rent of $500 or so dollars.  three payments later I had it rehabbed and sold.....such deals are hard to find right now, at least for me.

 Actually the terms "seasoning", "fraud", and "red-flag" were bandied about.  I was really responding to them.  One does not have to swing a hammer or a contractor at a house to buy/sell it and create profit.  I absolutely agree that such a deal will be hard to find. 

No freaking way I'm gonna be on the hook, especially if we are talking about Duke Energy.  DEFINITELY let the tenant get those in their own name...and confirm it in writing from the power/water company.

If things go even slightly amiss with Duke you can expect them to require a deposit not just on this property...but on every account affiliated with your name including your home address.  Seriously, they are crazy to deal with.  

I should have added...of course there may be stumbling blocks such as seasoning requirements...knowledge of the issues is another value you bring to the table.  Knowing how to work through the issues is always a key component of what we do here.

I'm a little surprised at some of the negative responses.  I do not see the problem with the strategy (I suspect such deals will be really hard to find, but I would do them if I could).

Real estate is a supply and demand business. But the concept of "value" is subjective.  buying an undervalued house, doing nothing, and reselling can be good business. 

An example comes to mind.  Way back in High School I really wanted a Ford Mustang (65-68).  I found one for sale at a gas station down the street from my house.  I was crushed to learn that the guy wanted $2000 for this beautiful car.  Way beyond the budget of my 15 year old self.  I happened to know that the car was being sold in anticipation of the owner moving out of town...so I waited and hoped no one else would buy the car.  Luck won out, the day before this guy left for Alaska I walked in there with $650 and walked out with the title for my new car.  It wasn't unethical, immoral, or against the law, it was the first time I solved a problem for personal gain.  The car was no longer an asset to it's owner, it was a stumbling block loose end he needed wrapped up so he could go start his adventure.  The money I gave him probably fueled him all the way to Canada.  Houses are really no different.

There are plenty of legitimate reasons someone might sell below market.  These reasons include really needing the money, needing repairs, anything and everything all the way to doing a poor job of assessing value.  There is no reason that Saar, if he finds the deal he describes, shouldn't jump on it!  Maybe the "value" is ready cash, perhaps it's the relief the seller seeks in unloading what for them is a problem, maybe he just knows the market better.  I would happily move on a property in the circumstances he describes.

Back in 2007 I helped my family settle the estate of my Grandmother.  Height of the market when everything was worth more the next day.  I had to argue with my Aunt on my (to her) high market evaluation of the house.  She was sure that my price was $50,000 over the top and that the home would never appraise even if I did find a buyer.  Had it been her choice she would have grossly undervalued the property...and no doubt sold it way under-priced.  Nothing immoral about that, she just failed to do her homework.  Fortunately for her  I did the right thing, listed with the right realtor, and sold for a premium.  A house is worth what you can sell it for.

Maybe Saar just brings a little extra marketing prowess or determination to the table.  Perhaps the seller doesn't do the internet and would never be able to market on CL, Zillow, and Trulia.  

We all deal in our special knowledge of real estate, that's what makes all this possible.

Saar, go grab your deal!

Nice deal, good looking house!

Thanks for the responses!  I thought things were progressing well on this deal then the lender just told me there wasn't enough equity on my PFS vis a vis the house in question.  I'm trying to see if it can be salvaged now...but looks done.

They asked for:

3 years taxes

recent pay stubs from the day job (I recently got promoted and the pay stubs reflect a higher salary)

Deal Analyses with projections (which I thought looked pretty good)

and that PFS (which has a nice positive number, though it is a bit lower than I want!).