All Forum Posts by: Loren Becker

Thanks for the advise.  Construction costs in California are crazy.  I think the home inspector would definitely flag the current condition of foundation and may cause a lender to back out.

Thank you,

Loren

I recently purchase a house to flip.  I have ran into a snag the foundation is basically nonexistent.  

Two major structural companies have bid the work and have quoted ridiculous pricing.  If I hire a structural

engineer to draw plans then hire a concrete contractor that seems that it would be best way to save a ton of money.

Any one else have a similar problem and how did you solve it.

Any other suggestions?

Thank you,

Loren

@Jose Villasenor

Hi way to go!  that's a lot of money to have saved.  

I would look at what you are trying to accomplish.  Rehabbing is expensive and you are on a time schedule.  Just for the conversation I will tell you what my hard money lender would do with 20K that would get you into a 60K house.  You would have to have to pay for rehabbing cost, carrying costs, ... out of you own pocket.

I would shoot for a run down duplex or triplex and live in one unit while renovating the property over a few years. this would help pay for mortgage and you would build sweat equity while fixing up property.

if you are set on rehabbing partner with an experienced investo and ask to be present during the whole process to learn.  

Most importantly don't stop taking action.

Good Luck

Loren

@John Rodriguez 

Hi I would focus on another building.  Fixing up your building is great, but that may require some vacancy time.  

I've found that unless you are doing major renovations rentals make the same amount more or less and you are just taking dollars out of you pocket.

I would focus on figuring out market rent value on the current and future building to get an increase in revenue.  

good luck!

I have this same type of insulation in my California home.  I was build in 1956 not sure what you call it or if its safe or not. maybe mineral wool

http://inspectapedia.com/insulation/Rock_Wool_Insulation.php

This sounds like a pretty good option.  

I met with a hedge fund manager and he suggested to me a similar option to fund further deals.  

The one consideration is the risk.  2 free and clear properties is pretty nice and I'm sure the provide cash flow.

I would suggest running the numbers and have a plan A B C.

Good luck

Hi experts,

I purchased a home to flip in Lennox Ca 300 Sq Ft and there is NO perimeter foundation wall.  the home was build tin 1938 seems

straight and level, but no foundation walls. My concern is after rehab if HUD or other lender would not fund a loan with older

type  of foundation?

Thank you,

@Christopher Oliva 

The best thing you can do is to go out walk the neighborhood you want to buy in.   Talk to everyone you can along the way.  

Yesterday I walked a full block and got 4 addresses to contact and met 2 different contractors that specialize in flipping with investors.  

This was made possible by taking action and boots on the ground.

Good Luck!

Hi Olivia,

I am facing this problem now.  Me and my wife were both large wage earners until we quit our jobs to relax a bit.  My corporation is fairly new so retail banks won't even acknowledge me as a human even though I have 5 figure income from rental property.   

Unfortunately retail banks wells, chase, BofA will not work with you at all.  So what I did was seek a hard money - bridge lender.  This option is much more expensive.  They take the entire portfolio and see you as a human and I was able to secure funds to continue to flip property.

I've found the best way is to pick up the phone and make a lot of appointments with lenders so you get a good understanding how the non-retail lending works.

Good Luck,

Loren

HI,

I would see you local title company and ask if you can get a password to search properties.  This is normally set up for free with the premise that you use their title company when you have a deal.

The other suggestions are good.

If you really want to be bold put a WE BUY HOUSES IN THE FRONT YARD, that always brings out a person that knows the owner or the owner themselves.

Good luck,

Loren