All Forum Posts by: Rob Knoles

Investment Info:

Single-family residence fix & flip investment in Seattle.

Opened kitchen and reconfigure attic space for living room, bedroom and bathroom

What made you interested in investing in this type of deal?

Return on investment

How did you find this deal and how did you negotiate it?

Wholesale

How did you finance this deal?

Intrust Funding

How did you add value to the deal?

Opened kitchen, updated systems, reconfigured attic space

What was the outcome?

Decent return

Lessons learned? Challenges?

Managing the ever-growing transient population in Seattle

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Intrust Funding

Investment Info:

Single-family residence fix & flip investment in Bellevue.

Due to permitting with the City I only did non structural work to this property.
We opened up the kitchen, added a kitchenette downstairs, and remodeled all the bathrooms.

What made you interested in investing in this type of deal?

Close to Microsoft

How did you find this deal and how did you negotiate it?

Off market-knew the sellers

How did you finance this deal?

Intrust Funding

How did you add value to the deal?

Open kitchen and update

What was the outcome?

Decent return

Lessons learned? Challenges?

Market slowed down right when listed

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Intrust funding is amazing to work with.

As the inventory in my market gets thinner and thinner, I realize how important finding the "gate keepers" are to my real estate business.

Would anyone in the community be comfortable sharing strategies they use to fill their pipeline, besides door knocking and mailing?

I am an experience cash buyer, with strong reserves and a construction company.

Thank you for your insight.

Rob Knoles

I agree with Steven.
Most likely HUD placed a restriction on your deed that would prevent you from selling the property for a per-determined period, say 1 year.

If you do not discover a deed restriction, I would move on with your life-just realize you won't be purchasing another HUD home to be owner occupied for quite a while.

Best of luck.

Thanks J-
It seems quite random which issues pop up at what time on which property...
I have some properties with glaring issues, that are not called out by appraiser, and some with miniscule issues that are forced to be dealt with.
I guess if this game was easy, everyone would be doing it again.
Have prosperous day,
Rob

That's my question too...it is basically coming from the lender. They say they wont fund until certain "requirements" have been met. This is often times within a week of our anticipated close. Worst part, after I do the repairs, the appraiser has to go back out to the property to verify....craziness.

Has anyone else noticed a dramatic increase in their scope of work and powers? I am having to bend over backwards to finish their "punch list" of issues on my property before we can close....this is after I have already jumped through the inspectors list from the buyer.

I am having to install handrails, carbon monoxide detectors, repair minor foundation cracks, and more.

What the heck is going on?

Thank you for any insight.

Granite counter tops in kitchen. Not very much more expensive. Where I live, in Seattle, there is a plethora of Chineese granite and cabinet wholesalers. They have 2cm thick granite for ridiculously cheap. It might not look that great in the showroom next to the expensive slabs, but alone in the kitchen of a rental unit, they look like a million bucks...at least $100,000....

I have encountered a few of these as well....I always call in an architect/engineer to draw up plans to bring the unpermitted area to current building codes, pull a permit to do the advised work, get the work signed off on and the permit closed-now you have a permitted addition with drawings from a licensed architect, permit from the city, and you can keep the redesigned space for sqft.

I have found myself in this predicament a few times....I will walk a house, have a vision, and then quickly realized after I closed on the property, my vision wouldnt work.

Solution=find a experienced residential architect who isnt working a whole bunch right now. For less than $1000 they will transform the space for you, and usually provide you with as-built sketches to take to the city for your permitting.