All Forum Posts by: Will Barnard

 No, it says you have done this more than just once or twice! One of the line items I see get missed time and again is the final cleaning so it is stage/show ready and the clean up & haul away of debris and trash throughout the course of the project. I myself often underestimated these costs which would take a bite out of my bottom line. 

Before you sit down and speak to an experienced investor, it would benefit you greatly to do some research here on BP (for free) to learn the lingo, the steps, the formulas, etc. Going into a sit down completely green will not be a good use of your time and certainly not for the experienced rehabber. You should come to the table with some knowledge first. Staying active in the rehab forum and engaging the community with questions and replies will go a long way. It takes time, there are no short cuts.

This is an old thread with last activity 5 years ago. That said, even 5 years ago, $20 an hour seems cheap by CA standards for a real PM with experience; Unlicensed or not.

This is a good question though and one that has been asked several times here on BP. Finding good project managers is similar to finding good contractors. You have to sift through a bunch of garbage to find the jewels.

Mel,You can upload files to share on BP here: https://www.biggerpockets.com/... which can also be found at the bottom left of any forum page under EXPLORE. I have never used the BP calculator so I cant comment on that but if you made your own to provide better abilities to input fluctuating numbers like closing costs at purchase, then hooray for you, nicely done.

I am guessing that the two that surprised you were "small size" and "fewer bedrooms". If you look at this from a math perspective, it makes sense. Homes that are smaller sell for a higher price per SF than their counter parts, same as buying a six pack vs a 12 pack. This does not mean you should only invest in small homes though. A home with 1 bedroom vs 2 or 3 is the same concept. A 1 bed home is likely going to be smaller and as such, will get a higher price per SF. These factoids will skew the numbers but again, you should not be investing in small single bedroom homes based on the statistics poured into the above. 

The rest of them are spot on - modern homes bring higher values, 2 car garages, views, amenities, and the age old - location, location, location.

If you have a legal binding contract, then I assume you have escrow opened (or a closing attorney) who is handling the transaction? Have them send emails and phone calls stating the contractual obligations which are not being met. Sounds like you have a potential legal issue on your hands so you may want to consult an attorney to assist. Prior to that, perhaps taking a trip to the property and knocking on the door.

Speak to some local lenders in your area, you should be able to get 75%-80% cash out LTV (based on an appraisal from the lender). I would also suggest speaking to your RE attorney regarding setting up an entity if you have enough equity exposure and begin to obtain multiple properties. Insurance is your first fence line of defense, an entity can be second layer.

If you pay 75% of the value, what about repairs? If you do not know the rehab number, you are not ready to make your offer. You must know the rehab budget and nail the ARV (it can not be a guess or estimate, it must be based on actual sold comps in your area. If you don't know how to do these tasks, then you are putting the cart before the horse.

Using a promissory note (which spells out the terms) and a deed of trust which should be recorded with the county recorder's office (which is your debt instrument which liens the title of the property for the amount owed) is the best way to construct this deal you have with your family member. What you all need to be careful about is the what if's!! What if it does not sell for the amount expected? What if they change their mind to sell after it is fixed up? What if, what if. Protect both parties from the what ifs to avoid some uncomfortable situations down the road.

This thread and the links to all the "how to build buyers list" posts compilated by Steve were all started many years ago. New wholesalers always seem to ask how to build a buyers list. Getting a buyer is about the easiest process in the wholesale transaction. There are many ways (most of which pointed out in these threads) but frankly, there is one simple and proven way to do this without all the other hassles. A simple request to your title company to pull all cash closed transactions in your area and cross reference when an entity repeats itself inside of 1 year. If one entity closed on multiple transactions in a year, that is a proven cash buyer! Then doing a search on the website for your secretary of state will show contact info for the owners of that entity. There is your buyer, make contact with them.

The difficulty is finding the real deals, not the buyers.