All Forum Posts by: Steve Mandelbaum

Help me out with this, but your number are the best I have ever seen!

A  private lender loaned you 30k in the second position when you have no skin in the game?  If the deal goes south he has no protection.  At least among the lenders I know the risk of losing money is the number one concern.  All the private lenders I know require first position, charge points and have a minimum interest.    You paid him 1k for 6 months on 30k (12% no funding fee) that is an awesome rate. If the lender recorded a mortgage, they made almost nothing. I need you to introduce me to these people!  

You bought a place for 295k and 6 months later it appraised for 655k after putting in 30k?  If you pay yourself back for the reno money, did that come from your pocket?  I can blow through 30k on a single-family house just updating the major systems.

It is possible but not scalable.  If you had enough time and sweat equity you could probably find one here and there.  I have only been able to find this once.  I bought a house with no money out of pocket from an estate that was desperate to sell the house.  It took over a year to play out.  I met the family while doing a flip across the street.  

It is a one-year balloon payment and I am making monthly payments.  I paid close to the market for its condition.   I spent a few dollars doing a reno.  I have a renter in it now and I am even for cash flow.  I will either have to sell it off or refi in January.  Just because you put no money down does not automatically make it a home run. 

In the end, I will make money on the property.  It was a double lot and I have split the lots and started construction on a new house.  The tenant has also expressed interest in buying the house.

I think we all have to face the fact that no matter who is our next set of elected officials, taxes are going up.  There is no way to support this ballooning deficit, without some increased revenue and decreased spending.  All we can hope is that the increases taxes fall outside of real estate.  

The sharing economy is not going away, UBER, Lift, AIRBNB, etc, the companies are not terribly important in the big picture.  What does matter is technology has made the sharing economy more available.  A decade ago if you wanted to go on a beach vacation on the opposite coast, it was difficult to find a rental, unless you knew someone or wanted to do a lot of research.  It was just easy to call the Hilton 800 number.  What does travel look like post this mess?  Will people want to go back to travel at previous levels?  I expect they will, the other unknown is will people feel more comfortable staying with a corporate entity or an AIRBNB?  

We are in a weird little bubble now.  The stock market is driven by currency manipulation, QE.  The fed is printing money faster than even they can spend it.  How can a stock's revenue fall by 30% - 50% and the valuations still rise?  It makes no sense.  Stocks should be valued based on how much they earn and/or growth potential.  I am not convinced of either.  There are a few winners and their prices have been rewarded.   

Unemployment is being subsidized by the fed, though all its lending programs to business and the $600 a week unemployment benefit.

The plan is the training wheels come off slowly and the economy returns to a sense of normalcy.  Not sure we don't hit some bumps in the road, but there will be no "BOTTOM FIRE SALE".  The mortgage industry will be backstopped and the fed will not allow massive foreclosure.  They have mandated forbearance.  They are not going to then go back and say, we changed our minds give us your house.  We are going into 90 days delinquent, the amount of time mortgage companies start to file foreclosures.  Mass foreclose did not work out well last time they will not let that happen again.

After the world is open for business again, I see the economy starting to recover at a measured pace. 

LVP seems to be best on "naked" concrete slabs.  Whenever I have used it on raised foundations it had issues, separating and bowing.  It follows the floor and if the house is old and not level, you will see the high and low points on the floor.  I have used Hardie board under the LVP and had much better results, but it drives up the cost.

It is cost-effective and there are not a lot of good alternatives at the price point. 

Purchased 28

Reno currently at 31, plan to stay under 40.

ARV. - Who knows? When I started, we were looking to get to 90-100.

At $100k ARV and a 75% loan, all the investment could be pulled out. Who knows what will happen now.

 That is a great topic.  Tile is one of the most difficult trades to find good quality work.  I like the look and durability, but it can be a pain.  I had a tile guy who ran the wet saw next to the house and sprayed the brown water all over a freshly painted white house.  You can guess what his response was.

The big box stores regularly have tile for less than a dollar a square. I have been paying $1000 labor for a tub and shower enclosure.  

I have found the difference in cost is not significant, but the time and hassle can tip the equation.

If you are in a B or higher neighborhood, you should probably use tile.

Thanks, Mark.  

The roof seems like it could be part of that list. 

MEP's not sure I know what you mean?