All Forum Posts by: Alex Wesling

Quote from @Bruce Woodruff:

My thoughts: $750 is way too much to tow a car out of a ditch. Before you would pay even a dime, you'd need to see pictures of the car in the ditch  and being towed out. Everyone takes pictures of everything nowadays, we all have phones in our hands constantly, so I don't believe they don't have pictures.

Your Contractor is right in not re-pouring the driveway while it is so cold, so I would believe his story.

I would stick to your generous offer to deduct a few bucks off of the rent (maybe $100) for their troubles and then tell them to go pound sand.

 We had a 1099 guy on site doing work in our house. Another guy was putting in a new roof. He has metal sheeting nailed to the roof to hold the tarp down because of heavy winds. The metal sheet came up and hit the guys windshield and damaged his windshield and scratched his car. I told him to file with his insurance and we would pay the deductible. Thought all was good. He decided he wanted us to pay for everything or file against our property insurance. I talked with our insurance agent and he told me I was being generous for offering anything as we were not obligated to pay him anything.  You can only be as nice as you can.  750 tow 10009% didn’t happen and rent is rent. Likely they have probably been late before and now resorting to excuses why they are late.  I’d stand your ground and offer a peace offering (calling a tow company and getting cost to tow from that location) as a good gesture 

Insurance claims always get the crazy up charges for regular service inspections.  Can likely call any HVAC company and get a quote over the phone for sq ft of house.  Don’t mention it’s through insurance just that you are asking for the test to be done. Check reviews of the providers you are calling to ensure you have a quality company providing the service. Cheapest isn’t always the best option

Quote from @Patrick Flanagan:

Hello, 

I’m wondering if anyone is building new apartment buildings these days? I understand that if you buy an older one, forcing appreciation is a way to make a lot of money. 

I want to build my own. I’m curious if there are any general contractors that do the work them selves to save on a lot of the costs?? 

I’m just looking for any tips or advice if building a new building was worth it. 

Following. We have been talking about doing the same. 

Quote from @Jake Baker:

@Andrew Terry

Rehab of 40k seems kind of light. Is this just a cosmetic rehab? 

If this your first, a flip may be a viable option so you can build up some reserves. 

With cash you can make higher margins per deal because you have less holding costs.

With hard money you can make a better ROI because you are putting less of your own money in the deal. Think ROI… Your return is lower, but your investment is much lower.

Why I use Hard Money:

1. Higher ROI on my Money
2. I can keep more of my own cash in reserves in case something goes sideways.
3. A good HML will be on your side. Another pair of eyes to look at your deal.
4. Leveraging debt allows me to do more deals.

I personally run my numbers in reverse for a 1.4 DSCR. Our area has little appreciation but maybe 1-2%. On an individual house basis it can be tricky the key is scaling so as the post above states one tenant can wipe years of profits. Example below

we found a house for 900 a month rent
 Asking price was 59900. 
taxes 1400, insurance 800, renovation budget 25k mostly cosmetic and minor fixes

we went into it expecting a 15% return on our cash out  that gave us a expected cash out loan around 75k to get our 1.4 dscr   

When we plugged our numbers  we could go over 47k on our offer to make the deal work  we offered 43 and got counter 47,5  we took the deal assume a slightly lower 1.38 dscr

the key is to scale and be selective on tenants AND not allowing pets (you can offer them but suggest crazy fees to cover yourself)  500 pet fee, 25 a month per pet etc.  also recommend doing quarterly inspections on pet houses 

hope this helps  PM if you wanna discuss further 

We charge $500 pet fee that’s non refundable. I do like the above statement about doing a refundable fee to ensure you’re enticing people to take care of the property. We have 21 properties and only allow pets in 3 of them due to pets already being on site at purchase. They do a ton of damage and pet owners can be shiesty with the care for damage and “staining”

We closed on a property over a month ago and they still have not sent in the deed. I have called and emailed numerous times to no avail. We are working to do a cash out and can’t until the deed is sent in.  We’ve closed on over 25 houses and NEVER has taken more than 4-5 days after close to have GIS updated. Anyone else have bad experiences with them. Suggestions?

Quote from @Pandu Chimata:

Hello Team, i am about to buy a property that is has very very strong smell inside. It looks like several cats were there for a long time. Unless I clean the smell, we cannot work there. 

Currently all the doors and windows are closed. How do I get rid of the smell? I am sure many of you folks have gone through this situation. Thoughts? 

We typically use Kilz on all the floors to mask the smell as well before putting anything new down (assuming you are going to carpet or put planks down).  We typically add in paint additive to the 5 gallon buckets to also add a good smell to the flooring/walls. I’ve attached a link to thread. If it’s on hardwood and you were wanting to keep the floors then you have no option but to pull and replace

please note you need 5 of these for each 5 gallon bucket


https://www.homedepot.com/p/PPG-Scent-1-oz-Fresh-Air-Odor-Co...