All Forum Posts by: Brad Fausett

Hello!   

I was wondering if you are commonly working directly with your GC or tradesmen when doing a large rehab or do you engage an architect.  I am under the impression to get permits for plumbing and electric that the city is going to require a plan?  How do you get around this or is this just part of doing business that I need to better budget for.

@Patsy Waldron

Thank you!!  I didnt realize i needed to choose ohio, then a subsection.

Sorry to hijack this thread, can someone tell me where i start a new discussion in the cleveland forums. I can not seem to locate a button to create a thread in this specific forum, 

Hey BP. I am hoping some investors would be willing to share their A-team information. It seems like a long shot but its worth asking. I relocated about 2 years ago to the Cleveland market and recently transitioned into nearly a full time investment/rehab role from my former occupation. I am looking for some contractors in the Cleveland area that you have had good experience with and would be willing to share with another investor. Can anyone refer a plumber, electrician, carpenter and some demo guys. I will be acting as the GC scheduling my own trades. I have several lines out to find a suitable partner in these areas but your experiences and foresight is invaluable which is why we all love BP.

Also, this seems so ridiculous to ask. But when i am in the local forum, Ohio>Cleveland I can not figure out where to create a new post in my area forums. Can someone enlighten me as to what I am doing wrong. Thanks

I guess its easy to say aside from locating then negotiating a purchase price against the home there was no due diligence other than inspecting and reviewing cost to remedy.  I was not aware nor had anyone shared any information with myself or the realtor involved that there may be liens against this property.  I expect that the title company will uncover that information prior to closing.  However, since I discovered the city had some POS violations on the property I today during my meeting with them discovered those were minor and the city would be happy to work with me to revive this property.  At that point the did move to tell me that they had a lien to recover cost of bringing the property to a safe condition which is what triggered my questions here.   I have presented the documentation back to the bank and have expressed this is a fee the need to address prior to my purchasing of the home..  Fingers crossed they will.

Hi BO,

I am closing on a property that I discovered has 2 city fines attached to it today.  1 of which was a nuisance abatement and the other addressed the poor condition the stairs outside the home were in. All in all, $19,600.  Who is responsible in a bank owned sale, as is deal?  I was not aware of these or of any pos requirements until after we went into escrow.   Thoughts?

@Jim Cran,  Great job on your reno!  The kitchen is beautiful and the finishes are well appointed.  I take it you are hiring our the work or is your wife is just that handy?!!!   

I am fairly new to BP though I have been watching over the forums for a good bit of time before.  I am looking for other investors to meet up with and bounce project ideas off of.  We currently own a gorgeous duplex in Lakewood, and just purchased a 1500sq ft single family foursquare as a flip.  It sounds like you and I are in very similar projects today.  I may be able to assist you with a knowledgable CPA, my attorney set me up with him out by Crocker Park.  He seems very knowledgable albeit slower that molasses at times...  I guess if you are good at what you do, you are easily over booked.  Let me know if you are interested.

If it is just nailed up Paneling it should be easy to remove.  If they glued it, a little elbow grease and a scraper you should be good to go.

Greg,  

What I was wondering was should I use cash then refi against the home value.  I am buying the home under value, refi against the value should boost my cash on hand to renovate.  

Thanks Sam!

Can you clarify "Finance it for 75% of purchase price..... so you put in 80, borrow 60 back out.... use that to finish the house... with a budget back up to 140 for fixing and any overages"?    If I borrow 60K out I will come up short on the cash needed to get the project done.  You then mention with a budget back up to 140 for fixing and overages?  Where does this come from?

Another thought, the house should appraise for $110k or more, the refi would be based on the appraisal value and not what i payed for the house correct?  This method would actually boost my cash on hand by going this route then.