All Forum Posts by: Alex Deacon

@Chris Purcell Until you build a relationship with and trust a contractor I would not give anything significant to them to get started. if you want what you can do is agree to buy the materials so then all the contractor needs to cover is his labor. This way they dont need any money up front and at the end of each week you can pay them for what they have accomplished.

@Jason A. I think you can be patient and perhaps wait for another deal unless you think this property is under performing and by doing the repairs and upgrades you can get the rent up and significantly improve the resale value. It has a lot of negatives and not enough positives. But with that being said I dont know the area like I know my location. check out Pittsburgh if you are interested in buying out of state. You can reach out to me for any questions on this area.

good luck with your decision.

@Denis Davydenko Ask to see the P and Ls for the portfolio for the past 3 years. Also the tax returns that would show the properties. I think it may be called a schedule c or e. I say this because you can pencil whip a P and L to ake it look good but the tax return may show a different story. also speak with a handful of other investors who are also partners.

@Benn Albrecht Make sure that CMA is accurate and the homes that have sold are very comparable to yours and very close. The closer to yours the recent sales are distance wise the better. Also make sure your accounting for all repairs. I would have a home inspector look over the home. prepare for the worst especially when you can reinstate some of the utilities. if the homes ARV is truly 120k and you are buying for 70k then even if it needs 30k of work you are doing very good for yourself. my concern is make sure the value is indeed 120k and the repairs are accurate.

good luck

@Dan Shelhamer We manage 650 units and have been in the rental business since 1992. I have been burned my little old ladies, ordained ministers, god fearing people, drug dealers and everything in between. I have become numb to what people say. Their actions, attitude and past history have to tell the story not their mouths. Oh yes also family members have burned me. Cant forget those ones LOL

Best of Luck you I am sure you will make the best decision you can. Then it is a roll of the dice after that 

@Doug Bryant That Certainly could work. Just be careful. Make sure the investment is a wise one.

@Doug Bryant I would have to agree with @Ryan Murdock. Your investor IQ should be much higher before you start leveraging yourself so deep. Plus chances are you will not find a reputable lender that will front the money without some collateral.

@Loy G. You have to be reasonable. if they have been there 5 years then you should probably let them off the hook on the painting. The patchwork is their responsibility. If they have been there less than 5 years then you should charge them for painting that wall. If you have the paint to match it still will not look good without painting the entire wall. You shouldn't have to paint the entire room unless of course the other walls are bad. Its your call. Normal wear and tear is subjective and a gray area. 

@Nate S. Nobody should hate a wholesalers. If the deal makes sense and everybody can make a profit then so be it. if the deal doesnt make sense then dont buy it. Dont blame someone else for your failure to make the right decision and purchase the right property. I dont wholesale but I buy from them. I want to see them come to me with every  deal they have. To be honest only one out of 30 make sense. Most of them suck. I just choose not to buy the sucky ones.

@Rigo V. There is so much more to the approval process then what you have asked above that you should talk with a trusted lender. A good mortgage professional will  be able to answer your questions very quickly and easy once he runs your credit.