All Forum Posts by: Sterling Fields

I completely agree with you @Jared Newsom. I used an independent broker for the three properties I own. He received quotes from a variety of carriers and let me compare the prices and coverage. Personally I feel we got the best value this way. @Cathryn Bankhead I used Robert Aiken, extremely friendly and responsive. I am in the Jackson and surrounding areas, so not sure if he will insure in Southaven, but it is worth a shot.

@Account Closed Where is your house in MS, how much work does it need, and what terms are you offering for the note?

@Mateusz Prawdzik, I really appreciate the detailed response! Thank you. My question to Gabe was how you arrive at the rehab costs if you have never been inside the house to know how much work needs to be done? You seem to suggest to estimate that you will have to do a complete overhaul? Since we don't get to bring our contractor along until after we have already made an offer.... I guess it just seems that if you always over-budget and prepare for the worst, you could be missing out on deals that actually do not need that much repair. 

Are there any other specifics that you always put in your contract when doing a quick close? I really liked the three day review clause allowing you to back out for any reason.  Is that common? It sounds like your review clause acts as an inspection period for you and your GC, just not an actual inspector. 

And I completely agree, I have much more to learn about this process before I even think about beginning. What are some questions in your experience that a potential seller has asked that I may need to know the answer to? I am absolutely assuming there could be a *****how at some point lol. 

Thanks again for your help!!

@Gabriel Amedee Thank you so much for the detailed reply.  Yes, very new to the game right now, and trying to find out  as much information as possible before getting my feet wet. My wife and I recently bought a duplex using a similar approach that just happened to work out...we called a for rent sign and asked if he would be willing to sell. He was, and we closed in two weeks--no realtor, no inspection period---we just visited the property once.  We went through a bank on this property (got really good rates with a small local bank) and therefore, they performed their own title search.  The property was in great condition when we did our walk-through...only appeared to need a new roof. We took a risk there, but it really worked out, and the property has good cash flow.  

Next time though we do not want to leave ourselves as exposed to there potentially being problems with the house. I have decent construction experience, so for basic rehabs I am not too far away from estimating the costs, however I am worried about not catching major problems such as termites, mold, etc. I guess I should just do more internet research on catching these things, or like you said, make sure I have a good general contractor who can catch these major problems? 

For the duplex, the owner suggested a number he would be willing to sell, and we ran the numbers, and they worked. But for the situation I am currently wondering about, WE would be the ones suggesting a number, so I am just wondering how you calculate how much you would be willing to offer on a house that you have never been inside? Or do you make an offer based on the outside, the neighborhood, basic updates such as paint, flooring, appliances, then when you do a look-through with your general contractor, you change your price? I understand the flipping formula, how to use comps to arrive at the ARV, and how to arrive at the price with all of the relevant information, but how do i know how much to budget for the rehab? Questions in the cold call before you make the offer to give you a better idea of the repairs that need to be made?

By the way, thinking of all ya'll in Florida right now...

Hello all, 

I have read many discussions on cold calling/direct mailing absentee owners. Before I begin this process however, I am interested to know how things progress if you actually get someone who is willing to engage you and possibly sell.  I was thinking that I would ask them if I could come look at their property with a contractor (as I am not fully confident with estimating rehab costs on my own yet) to see what the rehab estimates would be. Once I get the rehab estimates, I would then make a cash offer through a real estate agent and try to do a quick close, contingent on an inspection that reveals no major damage, i.e., termites, busted pipes, mold.  Am I missing anything here? Also, when not going through a bank, how do you know that the deed is good/recorded/warranty deed, etc.? When do you check this out?

Thanks for all of your help, 

Sterling

@Christian SullivanThank you! It wasn't very easy to find, trust me. As you said, there just aren't very many multifamily houses in the area. Well, in areas where you would be comfortable living anyways... I found mine by pure chance. We were driving around in Flowood looking at houses and I randomly saw a duplex that had a "for rent" sign in the yard. I called the number and asked if they would be willing to sell, and they didn't even hesitate before telling me yes! We got a great price And in a great location. 

@Susan Maneck It was First Bank Mississippi. I worked with Matt Trusty, he is a VP in the Jackson area. Very efficient with the loan process. We will be buying another property here soon and will definitely use them again. 

 First Bank Mississippi, they were wonderful to work with!

 Thank you Tim!

 "Community" just means that they literally operate within a community, or two. When you call and talk to their loan officer, the first question should be "Do you offer in-house loans?" Many small banks just service loans and do not keep them. Only banks that do in-house loans can create their own guidelines and requirements for their loans. If they are servicing the loan it will be the requirements of whoever they are selling to.