All Forum Posts by: Tim Crumley

there is a podcast on the subject.  If I recall correctly homes are evaluated on an individual basis per their sales value and not the rental income.  The lot rent was the only number used to generate the value of the park and then the home are added.  So 100 lots at 200 would be $200,000 plus the 40 homes at say $10k each.  The argument is that you will overpay for a $10k MH if you value it like the land.  For example if it rents at $300 a month and you apply a 10% cap you will pay $36k for a $10k home.

BTW my CPA recommended to me to use and LLC filing as S-corp for my flips and a seperate regular LLC for my rentals.

I would.  Im not sure of any reason not to.

I use this same strategy on my day job but a little differently!  I am a property adjuster for a large insurance company.  I frequently meet with contractors/sales men.  They show up in their loud trucks and hop out in their tennis shoes and shorts.  I get out of my truck in in work boots and long pant and put on my giant tool belt complete with suspenders.  Looking the part tends to make the conversation much easier when the contractor and I dont agree.

As a former homebuilder that fell victim to the  collapse I will be watching the dollar much more closely this time around.  It is easy to overbuild thinking that it will make your home sell faster than the competition.  It doesn't.  Most homeowners aren't even aware of the "upgrades".  I frequently found myself in friendly competition with other builders in the neighborhood by building in expensive custom components.  This was a pride issue that generally had a poor return because the sales price is capped by what the neighborhood could support price wise.  The last house I sold I had to take a $60k loan to close the deal.  The house sold for $60k less than it cost me to build.  Obviously the time frame had a lot to do with it but the hit wouldn't have been as hard had I been a little more frugal.

Hoping to build a new business in the flipping industry using the lessons learned.  Watch the dollar because they go quickly.

Cant find the edit button but I would like to make this email a form email that can be reused anytime I have the same situation not just a one off.

So this is pretty cool.  I built our website about 3 days ago (www.UpstateWeBuyHouses.com) and proceeded to work on SEO, Google Adwords and Facebook advertising and today I got our first lead!  72hours or so.  Pretty amazing really.  Unfortunately the deal is no good but its a start.  

As part of the form I have what are you asking for your house as the first question and what is your minimum as the last question.  This lead started at $89k and they will take $84k. The comps in the area are around her asking price so not worth chasing.  But it did get me thinking...

I need to create an email template that thanks the homeowner for their time and giving us the opportunity to earn their business.  But then goes on to state that at this time time their home does not fit into our buying strategy, ie not enough meat on the bones.  

How do ya'll think I should word that and keep them interested in or company if they choose to reduce the price significantly?

Thanks,

Tim

Welcome Michael-

Go Tigers!

Tim from Simpsonville.

Oh and as an insurance adjuster part of my job it to report if the home is not owner occupied and is covered under a homeowner's policy.  This report goes to underwriting.  I am not sure if they drop people for this or if it is for customer service to contact the customer to try and save them money but I imagine that it's the former.  Play it safe and go landlord but make sure that you get an RCV, Replacement Cost Value, policy.  I see a lot of landlords that aren't and they are surprised at settlement.  

Homeowners insurance covers the contents ie TVs, Furniture, Clothes etc. as well as the structure.

Landlord covers the structures only.  The tenants should get renters insurance to cover their belongings.  

You need landlord only as there is no need to cover contents that aren't yours.