All Forum Posts by: Bonnie Low

You should be able to find a hard money lender in your area. They are typically in every market. Also search bigger pockets for hard money lenders.

We are in CA looking at an 1,100 sq ft home in the $80,000 range to flip. Comps are about $140,000 so there's a decent return, but it's not huge. But the house is stucco exterior with tons of cracks in the stucco that have to be repaired. 2 stucco Contractor's have quoted us $12k - $15k to sand blast, patch, apply a new "brown coat" and finishing color coat. This blows the deal at this price so I'm wondering what my options are? Placing siding over the stucco is a possibility but the expense could be just as much as the stucco repair. Is completely removing the existing stucco then re-stuccoing a cheaper option? I'm considering walking away from this deal but the property is about due for a price drop based on days on the market so I want to fully explore my options before we walk away from it. Stucco is new to us so we could use some advice from BP folks.

Great job getting it all down on paper! Here are a few thoughts that might be helpful for you. Best of luck to you!

On item #4, Criteria, are you factoring in your rehab time in your overall timeframe? The amount of time will depend partly on your funding source. With a conventional loan it will likely be at least 30 days' escrow. You might be able to get that down to 15 days with hard money. You can't start your rehab until you take possession. Then factor in your rehab time. This could easily add 30+ days to your time frame before you can start getting it occupied. Also account for advertising, tenant screening and background checks before rent checks start coming in - at least 30 days to be on the safe side, though you might be able to do all that simultaneously as your rehab is being done. Just a thought!

On item #6 - if it's not your principal residence, you might need to factor 25-30% down. At least in CA that's the norm whether using conventional or hard money lenders.

Hi Emmett - I understand why you're feeling overwhelmed. So far, we've held off buying a house at auction. We're probably missing out on some under-valued properties by doing so, but we're scared off not by estimating the amount of work to be done, but rather making sure we are able to get clean title to the property. We don't want any liens or surprises. I'm just curious what steps you went through to ensure clean title?

I used to work with a bunch of civil engineers who used AutoCAD. I think it's a little advanced for me, LOL! But thanks, Charlie S, and if you do find out what your cabinet supplier was using, please keep me in mind. Cheers!

I'm looking for a software program or app that let's me work on re-design of home layouts. We often find properties that have crazy layouts that need to be changed (like a bedroom that can only be accessed through another bedroom or a ridiculously large room that should be split into two rooms, etc.) Looking for suggestions on an easy to use, intuitive software program that will let us tinker with layout. It should also allow for specific re-design, like placement of kitchen cabinets, fixtures, etc. There are a LOT of programs out there, but I'm looking for something tried and true. Any suggestions will be much appreciated. Thank you BP community!

You might look for a contractor who is HERS rated. While their focus is on energy efficiency, they have all kinds of analyses they run to look for energy leaks. And, if like some people have suggested it's really an issue of the door not being sealed properly, they will find it. Check with the Building Professionals Institute (BPI) to find a HERS-rated home contractor in your area. I'm not affiliated with them, but I did previously work on a statewide energy efficiency program in California and many of the contractors we educated about how to take advantage of the state's Energy Upgrade California program had gone through BPI to get their certification. They maintain a database of contractors so I'm sure they could help you find someone or deduce the problem. And no, they're not a California-only organization. Not sure if Tiger Adolph is still the Vice Pres of BPI but, if she is, tell her Bonnie Low from Ecology Action referred you. Good luck!

We've been scouring the local MLS and have even looked at a few properties brought to us by our Realtor before they hit the market, but so far, we haven't been able to buy anything because the foreclosures we've looked at have all been bought during the owner-occupied phase or we've just plain been out bid on other properties. So we want to branch out a bit and are interested in looking into tax auctions, but it's a bit scary. Can anyone recommend a really good resource for advice on what to look for and how to do your best due diligence on tax auction properties? Many thanks!

Darin - have you listened to this BP Podcast where the guys interviewed Dale Hensel? If not, you should! It's totally entertaining and Dale has an incredible story. He was really young, like you, totally broke and had no idea what he was doing. And he is tremendously successful! Listening to his story might help you feel better. The #1 thing I hear people say they wish they'd done differently in their investing life is to have started sooner. So don't be afraid! You can never start soon enough. People may say 10 units is a lot to bite off for your first purchase but it might be exactly right for you. Listen to Dale's story on the podcast. I think it will resonate for you.

https://www.biggerpockets.com/renewsblog/2016/06/1...

I would start by talking to my Realtor. If you have a good relationship with a Realtor or agent, you should be able to feel them out about asking that question. In my experience, most banks are not very forthcoming for a couple of reasons: they can't put another buyer at a disadvantage by disclosing what they were willing to pay and because, frankly, they just don't have to be very helpful. There are exceptions, though, so ask your Realtor if it's kosher to broach the subject. You might also try preparing a write up of what you would offer and why (i.e., list the improvements you think it needs and the comps showing what you could potentially sell it for) so the bank has an understanding of what you, as an investor, need to get out of it. Sometimes they come out with an unrealistically high price and it can take months of slow price reductions before they get to the price point investors are looking for. Feedback from the market can only help. One more thought. I was looking at a HUD home that wasn't moving. I finally called the HUD asset manager and asked if they had a reserve price they were looking for. He ended up telling me what was owed on the house and, in a roundabout way, indicated that was the reserve they were looking for. They have a LONG way to go before they're going to get their reserve as it's still priced about $100,000 over what I think it's worth, but at least now I have an idea of when it might be worth my while to bid. Hope you find this information helpful. Good luck to you!