All Forum Posts by: Bob Derwin

How many windows are we talking about?  4-5K seems excessive.  I typically pay anywhere from $99 to $159 for vinyl replacement windows.  Add on another $100 per window to have my contractor install them, and at absolute worse, I'm around $250 per window.  These are for buy and holds, not flips.

I just opened one this afternoon.  I have the word investments in the llc name and when asked the nature of the business I told them real estate investing.  No issues, I was in and out in 20 minutes.   I needed articles of incorporation, EIN, and drivers license.

I say go for the 50-50 split to get started.  Starting is more important than trying to ring every dollar out of a deal.  My first two deals I found, negotiated, found bank financing, arranged/monitored rehab, and still manage myself (with by brother and sister as full business/equitypartners).  Both were financed with commercial loans requiring 25% down plus rehab costs.  Without their funds, I doubt I could have completed either deal.  After 3 years of performing the management free of charge, it was decided that i would begin taking a 10% management fee.  However, as a result of the first two deals, I now had 2 bankers who I have a proven track record with, and have since acquired 4 single family homes on my own.  Good luck and try to find a way to make this deal work.  The first one, is the most difficult.

My rents are due on the 1st.  I provide a 7 day grace period to accommodate weekly and biweekly pay cycles.  Since I allow 7 days to accept the rent as on time, I won't hear any excuses, a late fee is charged after the 7th.

The current lease and local/state laws will dictate the tenants' rights.

Local zoning and subdivision ordinances will dictate what can be done.

I use Capital One Spark with 1.5% cash back. I have one card in each LLC's name that does any type of rehab work.

I use Allure flooring available at Home Depot.

In some municipalities, .85 acres is not even a buildable lot. Check with local government and speak with both the zoning and sewer officer.  In the abscense of a sewer officer, find out who regulates on site sewer systems.

If the home is in a good neighborhood  (A/B), I would hold and take the positive cash flow over time, as the home *should* appreciate in value.  Otherwise, I would take the quick 40K.