All Forum Posts by: Sean Wilt

I looked at a house yesterday for Fix and Flip.  Will need all the typical repairs (flooring, cabinetry, paint, etc. etc. etc.).  But during inspection of the attic, the bottom of the roof decking and the rafters were black from a long ago fire (5+years).  Owner said they made substantial repairs including new wiring, new electrical panel, all new insultation and repair of any charred areas.  They got all necessary permits/approvals, etc. and House looks structurally sound and pretty good. But there is that black discoloring in the attic.  The home has been occupied by tenants for the last several years.

I would plan to have the underside of the roof painted in the attic to cover up the black coloring. There is no charring or damage to structure, just smoke discoloring as far as I can tell.  The roof needs to be replaced anyway so I would plan to do that so really in the end, just the black soot coloring.

Any issues I should be concerned with?   Would I need to disclose this when listing the home even though it was several years ago and all repairs have been made?  If the home has been completely renovated including the new roof, do you see significant valuation issues?  Just trying to learn how serious this issue could be.

 What is best way to reach you?   Do you lend in Georgia?

Hello,

I've been studying the fix and flip market for 10 plus years and am finally ready to get started. Looking to line up funding and am looking for a PML that can supplement a hard money lender or perhaps do the entire deal. I currently am set up in the system of an Atlanta area HML where they will fund 85%. Looking to get as close to 100% as possible.

I have about $350k in a money market account so have funds, but wife wants to keep the $ in the account and not use it for real estate investing.  I have many years of high w2 income and can easily provide tax returns, etc.  My credit score is 780 and I own 3 homes (1 personal and 2 high performing STVRs).  So all good on finances/credit/employment/etc.   

Would a PML be willing to go alongside a HML to get to 100%? I've read some posts and looks like the HML may not like that, so would a PML lend the 15% shortage from the HML and could you do that without the HML disclosure? Not looking to pull one over on anyone, just trying to figure out how a person with excellent credit and assets could get a 100% loan and if that is even possible.

I am in NW Georgia about an hour north of Atlanta.  Goal would be to do 6-8 flips/year.  Typical purchase price would be $125k-$250k.

Thanks in advance!

Hello,

Curious to get opinions on effectiveness of using postcards vs. hand signed and addressed letters for marketing.  I get the the post card route is way more efficient from a time perspective (although at twice the cost), but really wondering about response rates.   I feel like I get laminated post cards from multiple sources/industries almost every day and I just toss them without more than a glance. While a hand written addressed letter, I feel would get my attention a bit more.

I won't be doing thousands of reachouts initially, just 250 or so per month so while letters would be more time intensive, I am open to it if the response rate is better.

New but learning quickly! Looking at a property. If it shows on the deed history, Grantor is a bank and grantee is Housing and Urban Development on a special warranty deed, what does that mean? It was foreclosed? Wouldn't that then become an REO? Trying to get this down.

Deed amount of $168k is same amount it looks like as the mortgage the previous owner had. Was just transferred 4 months ago. It's currently listed on MLS for $160k.

When HUD as the owner, and looks like not much equity in the deal if I'm understanding this, probably not much opportunity to get a deal below asking price? It's a fixer upper but not too much room for big repair dollars given comps so would want to get some concession on purchase price if possible.

Thanks!

One thing we have done is we never allow less than a 3 night minimum.  This has helped with avoiding College Parties as they don't even search for 3 nights so that has helped greatly.  Otherwise, if people ask if they can have a few extra "people" over, we always so no. It's just not worth it. You want to trust people of course, but it only takes one bad one to cause cleaning headaches as well as unhappy neighbors.  

Place looks great!  We are in Rome GA, so might come check it out!  That said, we have had big success with starting with 5 night and 4 night minimums when we are several months out. You'd be surprised how you can get some nice 7 nighters 8 or 9 months our and it really helps!  As we get closer in dates, we gradually lower the minimum nights to 4, then 3.  We almost Never have a 2 night minimum until the last minute which is where it sounds like you are having success.  We'd rather have a few vacant days but get some nice long stays, than have nothing but weekends.  FYI, we have a log cabin in Lake Lure NC and and Home in Tybee Island GA.  Good luck!

Agree with the last poster about New Orleans.  That said, we have a hot tub at one of our STRs in North Carolina and it is a key.  It's really pretty easy actually.  We bought one new but at the low end of the price (about $5k).   Doesn't have fancy jets and a spa, but it's nice and fits 6 people.   We leave it on full time and have our cleaning people drain it after each stay. Sounds like a lot, but it's really pretty easy.  Been going on 4 years now and have never had a problem and it always gets great reviews.  We think it is for sure worth it and feel it has more than paid for itself over time!

Thanks James, helpful!  So this is an older home - 2 story with low ceilings and no attic so no room for ductwork.  Probably know the answer here but if it was you, mini splits?

Looking at a property built in the 1980s that the seller says is a 2/1 1606 square feet but all data bases I look at (Zillow, MLS, Propstream) show it as a 1/1 1070 square feet. Seller is advertising ARV based on the larger home. I have seen it from the street and it "could be" 2/1 1606 but won't know for sure until I can get in which won't be until next week.

Question is, wondering if it's possible the owner added on but did not get a permit so it's not on public record.  Do you see any pitfalls with this if that is what the case is?