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All Forum Posts by: Paul Jamgotch

Paul Jamgotch has started 20 posts and replied 132 times.

Post: New Member Grand Rapids, MI

Paul JamgotchPosted
  • Investor
  • Grand Rapids, MI
  • Posts 158
  • Votes 49

Welcome to BP, @Jake Thomas

Hopefully I get a chance to meet you soon at a REI meet-up.

Post: Business References Important?

Paul JamgotchPosted
  • Investor
  • Grand Rapids, MI
  • Posts 158
  • Votes 49

Following up, Cameron provided the closing docs to show what he netted on a couple transactions. I'm confident he's closed the deals that he said he did. I never spoke to other professional references offered later as my interest in wholesaling was simply not the same after this review process. I wouldn't hesitate to buy a property that Cameron had tied up via contract.

In my opinion its important to speak to a person who has actually worked with a potential partner... that's the only way I know, without investing cash or time, to learn about what it might be like to work with an individual. In the end, this is a business about people, not just buildings, notes, and land.

I still do not have is time to execute the hunt, rehab, and sale of a property. Therefore, I'm still looking for partners who might need cash for short-term projects in the Grand Rapids area.

Post: Business References Important?

Paul JamgotchPosted
  • Investor
  • Grand Rapids, MI
  • Posts 158
  • Votes 49

@Joel Owens

Thanks for the input. I should add that he is a wholesaler so he is probably concerned about me stealing a buyer. However, I have a 9-5 and no inventory so maybe I'll have to get him to understand. He has offered his title clerk so that is something to start with.

Post: Business References Important?

Paul JamgotchPosted
  • Investor
  • Grand Rapids, MI
  • Posts 158
  • Votes 49

Hi All. I am negotiating a working relationship where I would infuse capital for marketing and potentially capital to close deals. I ran across a scenario where the potential partner did not want to readily surrender a reference. Supposedly this gentleman has closed a few transactions but was reluctant to provide a name, number, note, or email address of a buyer. Should I be worried? Thanks for reading.

Post: 3 Pts Off The Top Reasonable For Financing a Flip?

Paul JamgotchPosted
  • Investor
  • Grand Rapids, MI
  • Posts 158
  • Votes 49

@Roy N.

Correct, Roy. He'll keep the 2-3% commission on selling price. He's providing his contacts and over-sight of the project. I have a 8am-5pm job so it helps a ton to use his contacts, have his over-sight, and general rehab/flip knowledge. I am in the midst of a career transformation so I will likely be able to do this on my own in the future. Right now I don't have the contacts to pull this off myself... believe me, I've looked. I'm happy to discuss any possibilities with Grand Rapids area rehabbers.

Post: 3 Pts Off The Top Reasonable For Financing a Flip?

Paul JamgotchPosted
  • Investor
  • Grand Rapids, MI
  • Posts 158
  • Votes 49

@Bill Gulley

Thank you for the replies, Both insightful. I am funding the purchase, rehab, & carry with my cash. I'll hold the title/deed until sale.

The 2% I mentioned was from his firms 3% cut. As a broker working out of another's' office, I am assuming his take is fairly high...might even be the entire 3% I guess. Not a lot, either way.

His fee is nothing more than 1/2 the net profits of the project. I'll forego the points and hope ultimate sale/expenses are in line with our expectations.

Post: 3 Pts Off The Top Reasonable For Financing a Flip?

Paul JamgotchPosted
  • Investor
  • Grand Rapids, MI
  • Posts 158
  • Votes 49

The home is 1700 sq ft. It will not require furnace, counters, or cabinets to be replaced.

Post: 3 Pts Off The Top Reasonable For Financing a Flip?

Paul JamgotchPosted
  • Investor
  • Grand Rapids, MI
  • Posts 158
  • Votes 49

Hi all. I'm getting ready to bid on a foreclosure. This will be my first flip. I am working with a broker/builder who has put together an 'at cost' rehab estimate which I feel might be a tad high for a basic paint/ floorcoverings/ windows project (he is not doing the work). He will also list the home once done (I assume he will keep only 2% of the 6% listing). I am financing the purchase, rehab, and carry. Is it reasonable to ask for 3 pts off the top before splitting the rest of net proceeds 50/50? It looks like this: $22K purchase. $18K rehab estimate. $5K closings and carry. ARV is $70K per partner.

Am I simply being to cheap? My concern is that we are running into the cold months and ARV turns out to be $55-65K rather than his $70K estimate. I want to make sure my risk is taken into consideration and I net as close to $10K as I can. Thanks for reading.

Post: Friend Staying on Property Refuses to Leave (NJ)

Paul JamgotchPosted
  • Investor
  • Grand Rapids, MI
  • Posts 158
  • Votes 49

Not legal advice.

I believe you have to go through the process of evicting him. There could be 'homeless' laws that could hurt you if you simply moved him out on your own. Be very careful of this as it might be what your 'friend' is hoping for.

http://rhol.org/csu/evictions/New%20Jersey/NewJerseySteps.htm

Perhaps you will get lucky and he will move on after you deliver the 'Notice to Quit' or whatever it is called in NJ.

Welcome, Sam & best of luck with your first property. You kicked out a tenant of 13 years to improve the bathroom & other rooms? Most LLs would do anything possible to keep a long-term tenant like that unless they didn't pay on time, were bad tenants, or couldn't afford close-to-market rent. Can you simply give him a two-week sabbatical from property & rent to complete necessary repairs? Perhaps they could visit family or friends. They might also find something suitable on site that offers temporary lease.

ETA: Assuming they were good tenants, I would consider a moderate rent increase try to keep them.