All Forum Posts by: Todd Heintz

We went to the courthouse and obtained a list of folks going through a divorce. We want to hire a VA to research their addresses. Does anyone have an idea how much would be reasonable? How about a different way of going about getting the information? Thanks in advance everyone.

@Larry Turowski Thanks.  Yeah we get a lot of pushback here in the Chicago area.  They want the purchase contract submitted when making an offer.  I get that the seller might want to the perspective buyer to complete the contract to indicate that they are serious however my time is valuable as well and I don't like wasting my time if my offer is not even in the ballpark.  I wonder if this is a RE agent thing or what?

Hello fellow BP'ers. I have a question for you. When you are negotiating a deal for a SFR do you use the real estate contract when submitting your offer? How many go about it more casually until a verbal offer is agreed upon and then fill out the paperwork etc...?

Thanks in advance,

Todd

@Bob Floss II - Hello.  I'm Jackie's husband and business partner :)   We will definitely let you know when we have the next meeting.

Regards,

Todd

Hi, I need help from the farmers out there. I am looking to buy a homestead. I am interested in two single family homes that are sitting on the homestead. The property also contains a large cow barn a pole barn, corn crib, 3 concrete silos and about a handful of other out-buildings. (see picture).

I'd be renting out the two homes. But my question is... is there any value to the barns, out-buildings or silos? Any ideas on how they could be re-purposed, rented etc... Is there a need for any of these buildings? Any insight would be greatly appreciated. Feel free to reply here or direct message.

Thank you for your time and have a great day!

@Alex Babayev

Great write-up!  Thank you for sharing.

Thanks everyone for taking the time and reply.  

I agree that it is not a tone of money to replace a busted pipe in most cases.  

I kind of like the idea of lowering my offer to account for the unknown.  I would definitely use it in negotiation efforts.

One of the houses is on a concrete slab.  That house I am not 100% sure if the water lines run through the concrete but I believe so.  I only say that because I found it odd that the HVAC ducts run through the concrete.  I must admit, if you could not tell already, I have no experience with houses on a slab so.... 

But thanks again for everyone's suggestions.

Regards,
Todd

@Edward Pulido - In your example you would be into the deal for purchase + rehab totaling $150K. The ARV is estimated at $190K. When you go to do a cash out refinance the most you'll get is typically (may be higher but lets be conservative) 70% of the LTV (in this case it is the Loan to ARV) back. 70% of the $190K is $133K. If this is the case you will be short $17K. If you are able to refianance at 80$ of Loan to ARV then you'll get to the $152 as you and @Darren Budahn mentioned.  

In order to get your full $150K back and move to the next property you'd have to be selling at $214,285 or hope to get to the $80K Loan to ARV.... and be certain that ARV is correct.

Personally for me and full disclosure I am new to investing myself, getting the ARV is the scariest part. Most all of the rest of the investing equation is pretty straight forward but make sure you get the ARV correct. I would also get your financing worked out before you bought the property. Talk to the banks, credit unions, mortgage companies etc... ahead of time. Ask them about their refinance options and find one ahead of time that will work with you. If not have a plan B, a different exit strategy should you not be able to refinance. A word of caution - I have heard (could be wrong) that some institutions, when they hear you are rehabbing will only give you 70%-80% based on your initial purchase price + rehab costs. I have not personally been told that by a lender but I have heard that at a couple of REIAs.

I hope this helps.  Good luck.  

Regards,
Todd

p.s. BP has their BRRRR calculator you can use HERE. Or if you want to work with spreadsheets you will find a couple uploaded by fellow BP members in File Place here on the site.

Steven Hamilton II Congratulations!

Hello BP team:

We are considering a couple of properties that have had the water shutoff for in one case almost 3 years.  We are in the northern part of Illinois so freezing pipes are a concern.  One is a foreclosure and the other is an off-market deal.

My question is what is the best way of protecting ourselves from the possibility of finding split pipes? Note: In both cases there is no sign of any winterizing.  The meter has been removed from the property.  

• Contract language?
• Insisting they turn the water back on before we close?  (I don't see the bank doing that and I am not sure I want to incur that expense either. Maybe.)
• Using this unknown to negotiate a better deal to cover the cost of repairs if in fact there was an issue?
• Any other ideas?

Thank you in advance for your advice.

Best Regards,

Todd