All Forum Posts by: Michael Hassell

Assuming your numbers are right I would jump on this deal.  So many ways to get out that you should be fine.  

I would take on the remodel myself, at least manage it.  I think Bill Roerich's assessment will come pretty close to hitting the mark and that's how I would approach it.  With that said you might try another tactic...

List that thing the day you buy it for say $15,000 owner finance with substantial down.  You be willing to hold the note with say $5000 down and the promise of monthly payments...your cash position would be secure and you would see the residual income on the note.  This is assuming you hold clear title and can manage the deal.  You could turn the property for cash and never have to swing the hammer.  Your looking for that handy type that isn't afraid of the condition.  You can always jump in, run the rehab and make her a rental...just my thoughts on it.

I think you need to go look at it,  get some comps, figure out a plan and present her some offers.

What else do you know about it?  Why does she need to sell this ASAP?  

Davenport values are all over the place and it can vary wildly from subdivision to subdivision, even street to street in Davenport proper.

Does the house need work? What kinda work? 

How motivated is this seller?

Always fun when your city makes the list. I live between #8 and #12 on the Forbes list....Central Florida has been pretty hot for at least 12-18 months.

Don't let this keep you down. Yes your flip isn't running as quickly as we might like, but you seem to have options and a couple avenues that should ultimately salvage the project and put money in your pocket. Sounds like your still gonna end up with a win....hang in there!

I'll post more later as I'm on my mobile now, but I'm an Orlando native looking for cash partners. My forte is affordable re-hab. Definitely interested in partnering on flips.

I'll shoot you a note in the AM with contact info. I'd enjoy talking with you.

Best,

Mike

The biggest problem is that the vast majority of agents do not have investors as their focus. Most agents want that traditional, pre-qualified, first or second time buyer. The deals you will likely seek to structure as an investor may not even be something the run of the mill agent can understand.

Understand to that the agent gets paid based on commission, they lack incentive to negotiate aggressively on your behalf. If you were an agent who's call would you rather get...the investor with his creative financing and ruthless concern for the bottom line, or the mold able and sometimes gullible newlyweds that want the perfect house?

With that said, I have met several investors who are also agents....these folks tend to have a more comprehensive understanding of what your looking for and they can help lead you to some deals...but in my experience these folks are few and far between. The thing that will make these guys work hard for you is follow through on your part. Not that you have to buy every deal they throw at you, but an ability to follow through (and occasionally doing so) is the key to building a good relationship. I've known a couple of these investor/realtors in the past that have sold me properties, and in a couple cases I have watched these guys liquidate their own holdings as old age approached...their properties tended to be sold in bulk at very fair prices. In one case a budy of mine picked up several houses at once and ended up making regular payments to the sellers estate...it was a terrific deal all around.

You can probably find an agent or two that will at least complete the periodic search of the MLS for you and let you compare whats out there...of course by then there are agents involved (commissions to be paid), and every investor and regular buyer in town can see the offer....so like you already mentioned some of the opportunity has eroded.

What's the old advertising adage? You have to be exposed to a new idea 7 times before it clicks? I was 20 once, found a few good mentors too, I'm sure at times I was a PITA. :)

@Derek, You might do well to interview a few home inspectors. Find a reputable one that's willing to let you go with him/her and ask questions. Heck, offer to pay them to go along on some of their inspections, I think you need a local guiding hand.

I hate to say it all comes down to experience...but it really does.

On major systems consider age, stroll youtube or manufacturers websites to learn how to estimate the age of an air handler or furnace. Get the first folks that estimate a roof for you to demonstrate how to gauge the life left in a composite shingle. Learn some of the big warning signs in regards to electrical (aluminim wiring or older knob and tube....not that I see much anymore but it is out there, that stuff will require replacement most likely).

You can look at a floor and tell me if its serviceable right now. Its easy to measure the square footage and get an installed quote from any number of suppliers, home depot offers this in most markets.

I don't know what your partner meant about outdated walls....and that's completely subject to my budget and intended use, but rarely would I find the average house in need of full on wall replacement (though it does happen). I'm more concerned about how much patching to do, water damage, anything funky that a hack re modeler has done, that sort of thing.

Again, it depends on my intent, but I wouldn't move to replace windows unless that fit within the scope of my intent. I've bought and sold houses that had perfectly serviceable wooden windows.

If I was 20 and starting out again I would find a place to learn. I did this by volunteering with habitat for humanity. In my area that was a bunch of knowledgeable old guys that were glad to have my then strong back. I learned the basics of electrical installation, drywall, and framing that way. I only went when I had the time, and I met some useful contacts.

I think the short answer is simply "no", "gut rehabbing is NOT a good estimate". While it can be vital to have a worst case scenario in mind when making an offer, simply using a from the hip "full rehab" number just misses the mark.

You need to be making informed decisions with realistic numbers. You might try separating the systems to gain some control of the scope and pricing of your rehab. Imagine a top down approach. Its pretty easy to look at a roof and make a reasonable guess on useful life and potential repair costs, next look at major systems; AC/Heat, plumbing, electrical, itemize these out. Interior and exterior wall repair, paint, flooring come next, etc... remember the old joke about how you eat an elephant....its one bite at a time. By breaking these systems down you will quickly get up to speed on costs and you can find select subs to do the work while you ride supervisor over any work you can't handle yourself.

I'm brand new myself, so I won't say welcome...but I will say howdy, we are neighbors as I live in Polk County not far from Disney, we get over to Lakeland every few weeks I know the area pretty well. I think there is a lot of opportunity right there where you live.

I would echo your interest in short term rentals, though maybe for me the beach is still a little too far away...though the idea of utilizing AirB2B sure is tantalizing!

Best of luck,

Mike