All Forum Posts by: Ed L.

Sounds like a steal.... I would probably try to secure some type of financing and buy it out right so title insurance could be issued before any money is handed over.

The owner finance seems like the weak link

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Should be a good deal!

Wish my market could handle rents over 1,000 better..

Where did the 1185 Monthly rent figure come from though? Seems like a odd figure?

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You should just go rent one for a weekend... It may cost 5 grand, but hopefully it will get the thought out of your head..

I was in a similiar situation a few years ago...

I've always wanted a BMW...

Had a good RE deal go through and I bought a lightly used 335i for 35K cash...

It was a blast for about a month... Eventually the new wore off and it became just another appliance for commuting....

Not to mention those fancy sports cars are horrible reliability wise....Parts for a 04 Lambo would be outrageous... Not to mention finding a Lambo mechanic....

I've really came to appreciate a vehicle that just works... TOYOTA4LIFE....

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The concept of "Wholesaling" seems shady as hell IMHO... Especially if the Wholesaler lacks the funding to actually do the deal without a end buyer...

Basically you are just tying somebody down while you play unlicensed Realtor... It may work in huge towns, but in smaller cities like mine it wouldn't take long to build a reputation as "that guy who waste peoples time"

There are some scenarios where I can see it as a viable option..

Ex.. Purchased a home in a Highest and Best Offer situation... Competing bidder came to me directly and offered to buy for $x of contract price... Basically just buy the contract...

Basically if you have the personality and deal making ability to be a Wholesaler, then you would probably be a outstanding Realtor.... Go through the paces and get your brokers license and work from home to eliminate overhead...

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Originally posted by Will Barnard:

No offense to Wife and Mom but what experience do they have in rehabbing that would have you taking that advice so strongly? Putting in a shower would not be that much and the exit value would increase well over the cost to put it in. Again, kitchens and baths sell homes and only having one shower in teh home is a detrament to the sell. A good rehabber will get rid of all negative espects of a home and turn them into positive ones (when possible). In this case, it was possible for you to do, but you chose against it and I believe it to be a mistake. I disagree with this! As stated, kitchens sell houses and the cost of at least new granite countertops and some modern hardware would have helped set that kicthen off. The cost of doing so ($1500 or less) would easily bring twice that in exit value. Even if it were brake even, the home would sell faster saving holding costs and opening up oportunities for the next deal quicker. The more deals you can bang out in one year with the same funds, the higher your yields.

Lol.. Parents have been full time investors for about 20 years...

They definitely are not infallible, but they are a good point of reference when making decisions...

However on this one I agree with you..

At 110,000 the margin is more than adequate to do the kitchen and add the shower in the master.

I do have 2 showings tomorrow, (One being a repeat).. Hopefully it will sell and I can tell dear ol mom she was right as usual lol....

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Originally posted by Jorge Inzunza:

nice rehab! are u a contractor?

Just a Realtor/Investor... I do hire out all my own subs.

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Originally posted by Will Barnard:

I have a strong feeling that teh actual costs of rehab + holding is greater than $5k. The minor touch-up rehab, plus the staging would be several thousand, plus Ed wil have interest costs, taxes, insurance, utilities, and other misc. costs.

5K will pretty much cover things out to 6 months hold.. After that the holding costs start eating away..

There is just sooo many little expenditures that go into flipping... Especially when holding & procurement are factored in.. I guess the key is to not waste a day and turn as fast as possible.

Paint & trim work was 1,000
Stove top 550
Dishwasher was 300
Vent hood was 50
Appliance install was 150
Yard clean up was 150
Insurance for the year was 450
Taxes would be 750 for 6 months
Utilities will run 350+/- for 6 months
Interest $65,000 x5%= $1,700 semi annual
Yard Maint will be 50 per month from here on out.

1 day of my labor and a jug of clorox is 250.

Puts me at +/- 6,500 when all is considered...

Did receive a 3% sales commission on the purchase side.. + $1,950

Closing cost were minimal..
Seller paid attorney fee & title insurance.
I had loan origination, Home inspection (150), Termite (100)= < $1000

Mom's slave labor cleaning the inside and staging was free.. We trade labor on each others projects...

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Originally posted by Justin Silverio:

I agree with taking down the valance. It will definitely open up the window and give the kitchen a more clean/modern look. The only other thing I would consider is a new countertop....unless of course, tile is what buyers prefer in your area. A new countertop will make the cabinets look much nicer and make them appear newer.

Nice work all around! I hope it sells quick.

By the way, what bank offers semi-annual payments? That's pretty damn good.

It's through a local bank I've worked with since I was 17...*First Southern Bank* Semi Annual payments are awesome if you buy right and sell fast... I really like working with the small banks..

They actually threw some foreclosure listings my way this past month.... Pended one today! Hopefully I might catch a deal coming through the office... It felt so weird being the evil agent representing the bank on a REO listing... It's tough being fair in a Multiple Offer situation... Somebody always thinks they got screwed.

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Originally posted by Curtis Gabhart:

Its 100k market so how much more would the kitchen got him? At the most what he paid for it.

The most difficult thing for me is NOT doing everything but it doesn't always make sense to.

Precisely! It's hard to restrain myself from going all out *Flips & Rentals*... Luckily my mentor "Dear Ol Mom lol" is always willing to interject some rationality into the situation.

Something else to consider was that my original goal was to list for 99,900..

I have a agent who works in my RE office that lives and specializes in this particular area and he suggested the $109,900 list price... Still under $50 per foot... Dad and Wifey agreed that I was under pricing at 99, so I bowed to public opinion....

I'm going to do some figuring on converting the barn into a "Efficiency apartment"

If I could get 1100 for the house and 400 for the apartment it might be worth keeping depending on the cost to convert..

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Originally posted by Brian Hoyt:

If you use it as a long term hold, maybe you could rent the bathroom separately since it has its own door, lol. How much do you think it would cost to convert the bath to a huge closet and 3/4 bath? It certainly looks big enough to do that from the pic.

Overall I like it.

That's actually a pretty good idea. The closet/bath & 3/4 part anyhow lol....

I was actually thinking of ways to cheaply convert the storage barn/shed to a apartment.. It's pretty large and would probably bring $400 per month with alittle work

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All Forum Posts by: Ed L.

Ed L. has started 43 posts and replied 449 times.

Post: First Deal: Under Contract and Sweet

Post: Deal Question and Cash-on-Cash Return

Post: How To Afford A Lambo?

Post: This place is chock-a-block with wannabe wholesalers, what is the reality?

Post: Finished Rehab!

Post: Finished Rehab!

Post: Finished Rehab!

Post: Finished Rehab!

Post: Finished Rehab!

Post: Finished Rehab!