All Forum Posts by: Alex S.

@Daniel Rojahn any updates?  Can you post a pic of the place so we can follow with you?

I very much appreciate your hustle.  I can't tell you how many times I've researched and dug through zoning ordinances, city code, and made calls to experts only to find in the end that the project wasn't terribly feasible and I'd have to let it go.  Every time that happens I learn a boat load of new info and have some fun in the process.  I hope you make millions!  If not, I hope you learn a ton that equips you for your next deal.

Love it.

I'm really believing that Modular is the future after seeing that.

I think there is a considerable gee whiz factor to a smart home, because everyone loves the idea of controlling their A/C, garage door, lights, and refrig from their smart phone.  That said, I'm not sure those smart devices would pay for themselves in energy savings or resale value.  They are still pretty expensive compared to their dumb counterparts.

@Keianna Harrison I'm a big believer in the value of decorating/staging and clutter free design to sell a house faster and for more money.  That said, budgets are tight.

I feel like I just got lucky and married a brilliant designer and her contributions to my last two flips were by far the #1 feedback we got from house showings.  It isn't easy to get people to say a 1966 Bi-level with ancient plumbing/electric/HVAC is "so beautiful" and "amazing finishes."  People were haggling for inclusion of the decor in the sale because it was quite frankly the reason they bought the place.

So, I think you offer a value-added service without question.  I just think the business plan may need to look different for investors than for high-end homes being sold as a primary residence.

Thanks @Russell Brazil!

I should also mention the house was built in 2004 and is located between Sacramento and the Bay Area (read: earthquakes).

I've got an offer in on a fixer upper that has 3 wall cracks.  These cracks are 12-24inches and maybe 1/16th of an inch thick (just through the paint).  They are half way up a cathedral ceiling in the great room.  The listing agent says he has sold the same floor plan in the neighborhood and it had the same cracks which the buyer just sanded, mud, and painted.

My offer is contingent on getting a structural inspector in there to check it out.

So, my question is this: Are there wall cracks that you are "okay" with?  Or, are wall cracks a "buyer beware" red flag that you run away from?

Thanks for your thoughts!

I agree with @Kat W.'s suggestion to read as much as you can.

I'm still a newb working on my third home, but I had to start by flipping the home while living in it to save money.  Depending on your family situation, this is a great way to start and effectively use the money you would already pay for rent/mortgage to flip.  Find a home for $50K that is worth $100K in better condition.  Cut costs at every turn.  Live in the house while you remodel it yourself and learn as you go.

Never underestimate the value of a well-decorated and super clean home when selling it.

Good luck! It's fun!

Depending where you are located around Sacramento/NorCal, there is still funding available in the various "cash for grass" programs.  Here's the link for Sac County:

 http://www.waterresources.saccounty.net/scwa/Pages...

This would not allow you to do sod, but would give you an extra $1,000 towards a xeriscaped lawn that might be nice and lower your water bill!  Also check the State Water Resources Control Board website for the latest on other "Cash for Grass" programs that might chip in some money for you getting rid of that grass.  Good luck!

UPDATE:

I offered $470K and told the listing agent that I will use him as a dual agent IF he pays all closing costs (~$4.5K) and kicks in $5K to the bank.  Bank agreed to 6% in my case.  Thank you @Will Barnard for the closing cost suggestion and the post that basically reads my mind!  I ran all the calculations and my dual agent offer leaves him with about $7,600 MORE dollars than if I got my own agent...effectively giving him a 4% commission.  Much like what @Account Closed It is a primary residence, not just an investment.  That said, I disagree with your premise.  Every investor decides the max amount they will pay...and yes 3% is a game changer.

Thanks again everyone for the personal insights.

@Leigh C completely missed the boat, I think.  I'm not the agent's boss and he can say "no."

Thank you all for the rest of your comments and I totally agree.  Short sales are a TON of work for the agent and they earn that commission.  My proposal does not slight the listing agent a single dime.  He gets the full 3% he was planning to get...albeit for some amount of extra work.  In my actual proposal I give the listing agent a flat fee that equates to $1K above 3% to compensate him for the extra work of dual agency.

I'll have to check if it is illegal in California; I hadn't even thought of that!  I would never do it for a traditional sale, but short sales seem like it is buyer/seller/agent vs. bank.  We want the same thing.

I also hadn't thought about the brokerage prohibiting the agent from dual-agency.  It leaves money on the table, but it also keeps the RE union strong, so it makes sense that they would not allow it.