All Forum Posts by: Andy Sabisch

Curious as to what issues you had with Steadily as we use them on our properties but have not needed to file a claim . . . 

I would comment one thing on Lateefah's post.  Many inspectors are jack of all trades and master of none.  I have yet to see one find an issue that a tradesperson would have missed.  We have gotten good at walking the property and figuring out the reno costs but for things such as the roof, HVAC and at times electrical and plumbing, we call the trades people we use and they come out usually at no cost since they know they will be getting the work.  If we see the electrical is suspect, we figure a total rewire in teh estimate.  Same with plumbing - old galvanized pipes or jury rigged additions, plan on a total re-pipe.  The thing with inspectors is that what they are required to have varies by state and many simply require online training and you are off to the races . . . if you doubt that, do a search for home inspector training and you will see the training and software that prompts the inspector to look at specific items and generates a canned report in under an hour.

What have we learned?  The biggest thing is to ALWAYS include a contingency in the estimate - we use a minimum of 10% and more if we have unknowns.  Jobs will always run over and finding out you are underwater is not where you want to be. 

The other lesson is to never over improve a flip.  Sure granite counters and real hardwoods make a heck of an impression but if the area does not support the expense, you will have a hard time selling the property on a flip.  Remember, everything has a price - for some it might be $0 but the issue is will the price be what you need it to be at the end. 

 We have found that if you find a wholesaler that provides real deals and not deals that will not work, we would rather spend our time doing what we do best and let the wholesaler beat the bushes for the deals.  The point I was making about the overuse of the lists is that we show up on them owning properties out of the area and get multiple calls on a regular basis from wholesalers trying to tie up the property.  We usually ask them about where they found our contact information and it is typically the same list that gets sold and resold.

If you look at what it takes to find deals in terms of the programs that you need to subscribe to, learn how to use, contact the people on the list and deal with 1,000 no's to get that one yes.  Samuel says he has virtual assistants and has a team to get a deal flow which does not reflect a newbie getting started.  We would rather pay an assignment fee and have deals sent to us to pick from and move on to the closing, reno and rent or flip than try to duplicate what 100 others are trying to do.  Wholesaling is going to be regulated soon due to the way many are doing it but again for us, the cost to get a deal with no work on our part is simply an expense that goes into us determining if the deal is worth it to us or not.

 The problem with this especially for someone that is starting out is that with the ease of obtaining these lists anymore, you will not by the first or even the 100th person that has pulled them and reached out to owners.  The cost of the lists and then the time to contact people or pay a virtual assistant can quickly eat up seed money that could be used to acquire that first property.  Bandit signs were an effective tool a decade ago but they are so over used that their effectiveness in most areas is diluted.  We have found that getting an effective wholesaler or two to find deals is worth the assignment fee as long as the numbers work for us.  Good ones are experts in that area (finding deals) and we simply t=do not have the time or desire to compete with them to save the fee.

If that is the case, you need to look at putting down a vapor barrier and if possible, vents to the outside.  Is the flooring sitting on the dirt?  That should be off the ground and vents installed on the outside walls (I assume the lower wall is block.  But if you are getting standing water under the area that is soft, you need to look at drainage to ensure water is not being channeled under the house and standing there - moisture breeds mold and that can be a whole other issue to deal with especially if you are reselling the property.

Several options . . . . 

1) Contact wholesalers in your area (look for the posted signs all over) and see what they are finding, the area and type of properties.  Never assume the ARVs or reno costs they provide are accurate - always verify.  We have only one that we use that finds deals and they sell quickly so if you are ready to move, find a solid wholesaler or two and get ready to lock up a pro[erty when presented.

2) Join a local REIG and let members know what you are looking for - often they come across deals that are not in their wheelhouse but may be in yours.

3) Contact investor friendly real estate agents and let them know you are looking - pocket listings come across their desks and it may fit your criteria - let them know what your parameters are so you are not wasting everyone's time.

Not sure why there is a humidity issue on an outside deck as long as there is some airflow.  Are you saying there is standing water under the deck?  If you are going to remove the old deck, are you replacing it with wood or plan on using composite (i.e., Trex) as that will deal with moisture far better than wood especially since you will not be able to get under once constructed.  Pitching the soil underneath the deck towards a point where a trench channels water out from under it is an option but decks typically allow water to get underneath it when it rains and then it dries out from airflow.  I would be surprised to find that moisture under the deck is causing the issue the inspector noted especially since he could not get under it to verify the condition.

As Greg said, mold needs moisture and a lack of air flow to flourish.  The mold in the closets can be cleaned and if needed, repainted.  If there is black mold in the attic, you need to careful in touching it - wear a respirator to avoid health issues.  

Is the property lived in?  If so, are the closets opened / used?  Is there any mold in other areas?  Is there a leak in the roof or a bathroom above it?  

You need to find the source of the moisture or it will be coming back once you clean it.

Assaf, First, you did a great job on renovating the property in a short period of time (looks like you bought it in May of this year correct?). The question is did you look at the ARV before you started the reno or see what you needed at the end? You have an agent that should have looked at the area and recommended the price it would sell for which hopefully he did for you.

Looking at the properties in your immediate area, you are the highest priced property. Again, you did a great job but something is only worth what someone will pay for it. In this case, you need to find that one buyer that is willing to pay a premium for the work you did. The property is on a smaller lot and on a main road which will be a factor for some buyers. The listing is well written and it shows well . . . . you have only been on the MLS for 3 days so you need to make sure that 1) you are getting showings, 2) you ask for feedback from your agent and 3) consider what you have invested with the carrying costs to see if you are locked on the price. Remember anyone can see what you paid for the property 3 months ago including the buyer's agent so it will show as a flip.

As others have said, if it does not sell, price is usually the factor but with only 3 days on the market, see what happens in the next 10 days or so.

Richard nailed it . . . . looking at what sold 6 months ago is not going to tell you what will sell today or what it will sell for since the market is very fluid at this point.  You need to have a pulse on what the market is doing real time to know if a price and finish of your property is in line with what is selling and what is simply sitting there.  My wife can tell you better than most local agents can as far as what the market is doing which speaks to the quality of many agents today (often little more than door openers on for sale properties).  If you keep up with sales in your area you will know what is selling, how long it is taking and what features are being sought,