All Forum Posts by: William Allen

Jay, 

Have you tried Universal Property and Casualty Insurance, they have pretty good rates in the area.  You should be paying less than $1k for that house.  If they don't give you a good one let me know and I will send you the numbers of some insurance brokers in the area that should be able to help you out.  

-Bill

Tonya,

More information is needed to give you a good or bad stamp on this property. That area can vary greatly wrt pricing and it will really depend on what shape the property is in. I would never go off of the tax assesed value of a house to determine it's value. You have to comp it out, look at other rented properties in the area, recently sold, get on google maps and look at the street view, drive by it if all of that looks like it could be a good value. Make sure you do your due diligence on the house and make sure the numbers work in your favor too. Also, what are you planning on doing with it? Renting it out? Living in it? Does the seller want to hold the note or will he sell it outright for the right price?

I typically use larger banks or online mortgage companies. Have also used private money on the past 2 deals. Take Jay up on that contact. 

@Steve Marshall I have seen this question here a few times. Most of the answers are try smaller banks but that will be difficult for you in Thailand. I would keep at it and I'm sure someone will be willing to set you up. Maybe try some of the internet lenders off zillow or online. If not, how about friend or family that want to earn 5-6% on $30k with a house to back it up? Or a TSP loan if you use it (not ideal but if you have that much in your G fund then you are just paying yourself the interest). If that doesn't work a personal loan could but I find those interest rates are typically pretty high.

I'm sure someone on here will have a lender contact for you that will provide small loans.  Good luck!

@Steve Marshall  You must have been an instructor at Whiting.  I am heading back there early next year and have two houses in the area.  Looking forward to getting back and picking up a few more.  Investing from overseas is difficult, I did a tour in England and it was a challenge with my properties.  Let me know if you need anything and I will be able to help out next year when I am there.

@Cole Walker  Good points all around.  He may be a little more cautious since I didn't accept his bid on the last job.  But if I recall, he asked me my budget last time too.  The SOW I sent him was extremely detailed with specific finishes and types of materials too.  I'm pretty confident on my price of materials, just not on his labor and other charges.  Thanks for the input!

@Wesley N. I agree and disagree with you. Right now the scope of work is the scope of work and that is what is being bid on. And my ARV is based on that SOW being completed. So, if all the bids come in high and I didn't do my rehab estimation correct then it will eat into my profit. I realize that and accept it. But if I am telling the contractor what my rehab estimate is, aren't I just bidding on my own job? I see no point in giving him that information right now, if I had done a bunch of jobs with him and we trust each other than that may change the scenario.

Curious to know what others do and how it has worked out for them though.  Thanks for the replies.

@Patrick Parry 

I don't know what happen here but I must have missed your post somehow.  Yes, my cousin is still looking for an agent in Frederick.  She is a first time homebuyer but looking at foreclosures and short sales with my help, doesn't mind a fixer upper.  I don't know the area well enough to direct her to a good agent or to send her listings myself.  Thanks!

I'm sure I am going to get a range of responses here.  I walked through the house we are rehabbing, came up with a detailed scope of work, and emailed it to a contractor I have gotten a bid from in the past (but haven't used) so he could look it over before our walk through in a few days.  He asked me what my budget is for the project today.  I don't plan on giving him my budget or what I think it will cost ahead of his bid.  I think this guy is going to cost a bit more but will reduce the amount of time I need to spend babysitting the project.  I don't have any bids back yet but should by the middle of next week.

So, the question is, do you tell a contractor what your budget is?  Why or why not?  

I will reduce the scope of the project if the current scope will eat up my whole margin but I feel like we did a pretty good job of estimating rehab costs on this project before we purchased.  However, I would like to see the contractors come in under our conservative estimate and giving them my estimate before they bid won't do me any good.  Thanks!

Some typical second home thoughts: Is it located a reasonable distance away from the borrower's principal residence? Will it be occupied by the borrower for some portion of the year? Is it suitable for year-round occupancy? It can't be under a rental property or a timeshare arrangement. Typically the lender will want to see that it is located in a resort or vacation type location. I think the biggest problem for you will be proximity to your principal residence. Typically second home mortgage rates are a half point lower than investment property loans. Good luck!