All Forum Posts by: Russell Crooks

I had an attorney about 15 years ago who handled a lawsuit we were dragged into after we purchased a property.  He did a good job and got it settled.  He told me he gets better settlements because early in his career he never settled but took all to court and everyone he us up against knows it.  Your tenant will not take cash and keys he is looking to get bigger $ from deeper pockets in the long run.

File the  UD case in court, then contact the ex wife and let her know aboout your case.  The enemy of my enemy is my friend

For a simple test bring a marble with you.  Put the marble on the floor in every room.  If it rolls to the low point in the room, you have a foundation issue.  If it rolls to a low point in every room, and that low point is in a different place, you have major problems awaiting you.  Good luck!

Looks to me like you are planning on a 40% expense ratio.  Overall, I would be surprised if the expense ratio is less than 55% before mortgage, closer to 60% is more like it if you are paying all utilities.  If you cannot increase your rents on this, i would consider adding some sort of utility surcharge.  

I would also think on a commercial property your interest rate would be at least 5.5%,maybe higher-check with your local bank on this.

Good luck!

Welcome Jonathan! I was born there, just not raised there. Redding is the home of Fixer Jay DeCima. There is a lot of good information here so avail yourself to it!

@Karen Margrave, I borrowed money from my 401k on my first deal, and went HML for the rest. What I did not realize is when you take a 401k loan and pay it back, you may be limited from borrowing again by your employer for a certain period. Definitely something to check on if you are going to take a 401k loan.

Gary,

I think your numbers are too far off from their numbers. My thought process for Fed owned property is they will never come off double digits all at once. What I would realistically see happening on this property is the property will stay on market for a period until the next price drop. My guess is the next drop is not as significant, more like 20 to $25k. Speed is not their strong suit. Good luck on this.

If you think this needs that much in repairs, they will eventually get there- in about 2 years or so.

Hi Dwuan,

I think the purchase price is too high here. If your ARV is $90K, you have to figure in your costs of holding, selling, closing, etc. If you figure those figures run roughly 30%, you have $3K left for repairs and profit. I would just walk away from this deal at this point. You did not say what your repairs would be, but you would need to deduct this from your 70% figure. Good luck.

I am new to the forum and went through all the topics but did not find any information specific to my question, so here it is:
I am looking at going with the SD 401K, mostly because I am working Fix and flips and want to have flexibility on deals by borrowing 50K from the 401K. Has anyone compared the SD 401k to the SD IRA? Are there any pitfalls I am missing on the SD 401k? Thanks for your help.