All Forum Posts by: Curt Smith

Scott, Please please find a local mentor!!!   Join the local REIAs, which is where more experienced folks hang.   I have gotten into new folks first flips after they where in contract, even after closing and found they lost money NOT made money.

A 3/1 punch out to a 3/2 even with NO exterior walls moved/roof extended has exceeded $90k (easy) and you may end up more then $90k (for a 3/1 into a 3/2).   Only $15k or so less if same floor plan 3/2 --> 3/2 but new everything.

Rule of thumbs;  10% cost of sale not 6%, sellers have to cover buyers closing costs is std practice.  Higher rehab costs then estimated and cost of cash is higher then expected not only due but other issues due to rehab taking months longer then planed.  Holding costs aren'ed considered.  many oops and cost over runs..

Please get some training and a mentor. REI especially flipping is a team sport.

The REIA I ended up keeping aftrer joining them all, is GaREIA and they have a Northside flipers group and an Intown rehabbers bgroup where you meet other flippers, an email list to get contractor referals.

I just got a flooring (LVT) quote 2.5x higher then my last rehab.  $5k going up to $13k for just 1300sqft (including quarter round).   Of course this forces me to go to plan B and buy the LVT from Dalton myself and hire the installer myself...  All adding to my work and PIA!!!   Just FYI, re what additional hassel is in play and ways where you'll loose your shirt.

Good luck, curt

Hi All, I advocate one gets educated from an expert in the particular REI type you are focusing on; MF, self storage, SFR, or student housing...

Students prior to covid sign year (not school year) leases in July/Aug to start with first day of school.  Post Sept near zero students looking for housing.  Now with covid knocking down student populations in person on campus iit would take deep market study of each city/campus to see if there is a need or suplus of student housing AND the type.

I think you are stuck with under-renting till next July/Aug.   Try dual advertising as whole house term rental OR by the room

also, there's a reverse logic in rent amount that is oppositie what you think.  Advertising low rent = its a dump = no top candidates even click your ad = honest this is how the Guicce effect works.

I would study whats advertiised and compare amenities, locatioon (distance to campus is a KEY metric for each student rental) and rent amount.  Reprice yours to be $5 less the ave.    And consider term rental for the whole house.

In general small markets, smaller cities, specialized markets like student housing are in odd ups and surprise downs each do to specific issues in play in that market. IE how many other student / by the room ads are there? Vs in July / Aug. you don't know this ratio, but lots of doors available may meet surplus of inventory and you need to consider a plan change? SFR? AirBnb?

Hi Andrew, great to hear you are in contract.  Just offering my views;

- its too late to ask for this kind of help since due dillienge period will be over before any actionable tip is received.

- NO GCs today will walk a prop for free.  In fact there are NO GCs period.  They are all working 200% now.

- Hard to find licensed electricians everywhere.  There's  shortage, greying of the profession and more leaving then joining.

- Join the local REIA orgs in your area. In Chat there's the Chat REIA. Search in Facebook they have a private group. Hook into the physical meetings and meet the local invesetors. To others; BP is great for eletronic learning and networking, but local REIAs are where the experience and doers exist.

Connect/PM me.  Then hookup via my email/cell for sms.  I have an ok network of contractors.  I fix rentals in Rossville GA side.

Best of luck, curt

5% is only part of your struggles, once you buy even a fixer that appraises C4 (dated but livable) you'll still need fixup cash.  No bank commercial or occupant does fixup loans without more down.  The HomeStyle rehab loan for rentals,  403k for occupied can roll some rehab into the loan but its a conplicted process, SWBC.com and Fidelity banks do both of these.  But 20% is needed and thats oon the purchase + rehab amount.  Then you need an investor friendly GC, another imposibility.

I suggest you spend time and money on educating yourself in creative financing on the buy side.  I'm NOT talking about seller financing, a needle in a very big haystack today, but subject to and lease option (to buy).   Buy BPs books,  go to youtube.com and search on subject to, creative financning, watch a dozen authors channels and focus on a few you like.  I';ve bought all their training from 4 teachers, its all good and cheap realatively <$500, and most have communities.   

My last 2 of 3 deals where subject to... BUT true I owned a nice house in a rental area I love for <$5k (not including the $5k per marketing costs) then I had to fund the $40k rehab out of pocket. Even still I suggest you focus on subject to as the rumor goes 2022 will bring more stressed sellers to market with low equity, defered maint. The target group are; <5yrs of ownership, starter homes, needs repairs so cant be sold on MLS and cover the commissions and buyers closing costs (10% typically).

Education is always the highest value of personal funds.  Keep track of me, I like helping folks close subject to deals and have a training pdf to give away.  I have no interest other then helping.   Best to all.

@Drew Poniewaz I just mentioned a range of reasons why zillow and craigslist delete seller financing ads. I do SF/CFD myself. I post things for the general public to read for a deeper understanding not so much a reply to you. :) There's so many Gurus pitching this and that without mentioning the risks to them and to the buyers.

So glad to hear re your business model being fair to the buyer.   

I did mention that the main area where buyers get taken advantage of is re the price....   Dodd Frank corrects this by requiring the price be supported by an appraisal or some  basis.  I use zestimate,,   but tax  value is good too.  Typically SF'ers pick an astronomical price out of thin air.  Again I'm mentioning for future readers to see that price should not be out of thin air..   This is one of the reasons why zillow/CL delete or prevent seller financing / rent to own ads from being posted.   I have better luck with posting in the zillow rental section;   rent before you buy, live in a great property while you get yourself ready to finance a great home....

Our business model;   protect the buyer or tenant at even our own expense.  We really do want our SF buyers to be successful and pay off the note.  We have life time losses to uncollectable rent/financing payments to prove we back up this claim.   There's too many investors who are front page news in Northern states re CFDs gone bad and Texas where lease options went bad and the state enacted buyer protections...

Take care to all.   Curt

@Jacob Claeson I use erentpayments.com For the free application a very good tenant check screening, and then I keep them in the system and collect rent electronically.

@Reyes Suarez

By the way the attorneys actually will not give you all of the paperwork needed for subject to. Power of attorneys 2 of them affidavit acknowledging acknowledging loan will not be paid off and the risk of and the risk of loan bit loan being called little risk but you've got to disclose to the seller.. Trust documents I like closing into a trust that's optional actually but an attorney just is a expensive notary public for subject tools you have to come to closing with all of your own paperwork...

I have never run into an attorney that handled handled everything including all of the documents...

As a result I'm being an educator in my local Atlanta yeah I have written a training for subject 2 that includes examples of all of the documents one needs an explanation of what's going on connect with me and PM me and I'll send you that PDF because I want you to get the subject too closed and most importantly you have to handle the post closing steps properly to keep the bank off your back and to have actual landlord insurance instead Lord insurance instead of keeping the existing occupant insurance..

Connect in PM me and I'll send you a training document on subject 2.

@Alexander Chung pm me I can refer the super host (pm) that I use.

@Stacy Ross I agree with Matt as to structured. Subject 2 is extremely difficult deal to do right it's S what my chosen specialty is. Connect with me and PM me and I'll send you a free subject to documentation commentation training PDF.. I'll be glad to help you with the actual legal documents. Mainly because I think subject to is a fantastic deal type deal type for an investor and they're easy to screw up.