All Forum Posts by: Travis Boyer

@Patrice Boenzi 30k Seems extremely high to me. My crew is currently working on a 2500sq ft house, full gut to studs of the basement, gutting half the main level to studs and gutting 2 rooms upstairs removing All carpet in the house and im  doing that for $7,900   What area of Illinois are you in? 

@Patrice B.  Hi Patrice, yes you will still need to disclose the mold on your sellers disclosure because it was there and then remediated While you owned the property. Although I have seen people not disclose It many times, it is the law and the ethical thing to do. The neighbors Know the house has mold, lets Say you do not disclose it and mr and mrs neighbor are talking to your buyer one day and asks about "all that mold" then your placed in a difficult situation. Get it taken care of correctly, get a passing post remediation or clearance test and save all that paperwork and move on.   I am a General manager for a Mold removal and remediation company in St Louis so if you have any specific questions please let me know.   Travis

@Corey Liepelt  Hi Corey, I am a General Manager for a Mold Removal and remediation company in St Louis, Mo. Bob is right, it can run from $500 up to thousands...although $30k seems waayyy out there. My highest bid I've ever given was $15,500 and that was gutting 2 levels of a 4,600sq ft ranch and doing a trash out...horder house with 3 40 ton dumpsters of things. 

The biggest difference in price would be; can it be HEPA vac'd and chemically treated and cleaned or is demolition required. If demo is required that would increase the price but again, depends how much. I've done small demos, (closet/bathroom) and took the demo'd items home to throw away to save the customer the expense of a dumpster. 

If you would like, I'd be happy to give you my email or cell and you could text or email me pictures from today and I can give you a ballpark. That way you have something to go off of when your getting estimates. I'd recommend getting 2 or 3 and comparing. If 2 people want to clean it and the 3rd wants to gut everything, steer clear of that one. As with anything else, or industry has some bad eggs so research them, ask for referrals and look on the BBB. 

If I can help with anything let me know. 

Good luck and remember as an investor mold can smell like money!

Travis Boyer

Hi @Ashley Stewart  Welcome to Bigger Pockets! The blogs on here are great reads and you can learn a lot of information, the forums are also a nice place to go with specific questions. 

Wish you the best!

@Brenda Hedges Hi Brenda, I am a General manager for a mold remediation and inspection company in St Louis. We always try to clean as our first option making demolition the last thing we want to do, but sometimes demolition has to happen on drywall when the mold gets heavy. The spores will actually grow roots inside of the drywall and cleaning/killing them become difficult or impossible so replacement is necessary. 

I would suggest getting at least 2 quotes, 3 if possible on the remediation of this job and don't be afraid to let each person know your getting other bids. As they say it keeps the honest person honest. Ask what their steps are what chemicals they will be using. Many people feel getting rid of the mold is removing the drywall. That is just one step in a larger process. You will want to chemically treat the studs and wall behind each piece of drywall to kill the remaining spores and make sure the walls are completely dry before any is put back up. 

I agree with @Hattie Dizmond that getting a post remediation report showing an acceptable air quality level in the home would help with most buyers, however, if you do that have a 3rd party company do the clearance test, not the same company you used for the remediation.

If you have any specific questions send me a PM and I would be happy to help you out.

Travis

@Ellen Suzuki Builders Risk should be sufficient for a flip but it doesn't cover everything,  I would suggest getting a break-in or theft rider for a flip as well.

@Guye Ferg

@Guye FergAs Far as 100% HML do you mean purchase and rehab Costs, if so yes they exist, if you mean 100% purchase, rehab and closing costs, appraisal, etc... No. They will all want some "skin in the game" or some of your own money in the deal, especially with you being new. If the deal goes bad, what's to keep you from saying oh well and walking away from it leaving them on the hook, they would be at 100% risk and you would have zero.... That's not how it works. I have used Hard Money twice, I have one that pays my purchase and rehab, but I have to pay the appraisal, closing costs, and the monthly interest payment... Which isn't cheap. You'll need to show them you have enough reserves, savings, a 401k or enough liquid capital to cover at least a 6 month time frame. They will also want a detailed scope of work so they know exactly what will be done during the rehab, they won't just give you 40k and say make it look good. You will need help from a contractor to get this done, showing parts and labor of each item you plan on renovating. Also, don't forget about your holding costs as well, which they will not pay for... Electric, water, sewer, trash, gas etc.... I hope that helps some, let me know if you have any other questions. Good luck on the deal!

Just curious if other St Louis investors have changed their business or strategies with rising amount of crime in the city? You cannot turn on the news without hearing about another murser or someone being shot.  It's insane,  I'm scared to go to the city anymore.

@Gregg Thomas Welcome to BP and Hello to another investor in the STL! 

Good luck with your investing!

Travis

@Elias Meek Pros and Con's of Hard Money, there are several of both. Pros: they allow you to buy a property when you don't have your own money or cannot borrow money from a friend to do so. They are Asset based, not credit based ie..Hard Money so typically you don't have to have perfect credit as they aren't looking into your financial situation as much as a convention lender would. They are good for a short term flip, less than 3 months or so, they can give you a proof of funds for your offers which will make your offers stronger and they can typically fund quickly, most within 2 weeks or so. 

Cons: Most require some "skin in the game" and you won't get 100% loan for the property and the rehab, they will want you to have some of your own money in the project. This makes them feel better if you have something to lose if the project doesn't work. Interest rates are high, 10-14% or higher depending on experience. The loan terms are usually 6-9 months and some allow a one time extension of 3 months. You usually pay an interest only not payment monthly which is 10% of the loan amount, you are also responsible for the typical carrying costs, insurance and all utilities. Most work on a draw system for the rehab part of the loan and will inspect the work and require receipts from your contractors before they release the funds to pay them. If something happens and the project drags on....that interest payment can get might expensive to keep paying every month. 

I hope some of that helps, let me know if you have any other questions, I have good and bad experiences myself lol.

Good Luck!

Travis