All Forum Posts by: Curtis Gabhart

I just got done becoming a certified renovator for lead based paint.
I did it because the fines are potentially HUGE if you don't have it and I buy and rehab a fair amount of properties.

Here's the take away - your best off getting a 300 lead based test and if you and clear of lead in the paint you don't have to do all the crap.
If you have lead you just have to proceed with the work exactly like you would have anyways.

Point is a majority of places pre 1978 don't have lead in the paint.

I don't know what the additional costs will be exactly to properly comply with the new regulate but I do know IF done right it will be at least double.

A great place to find great deals is pending and contingent.
Look at deals that make you go "ship, I wish I would have bought that"
then call and find out if it may fall out, lettnem know you are interested if it does, see if they will give you an idea when contingencies are up and keep following up.

I have bought quite a few great properties this year with that method.

Dave,

I would recommend partnering with a client but keep your name in the deal. Make the equivalent to a wholesale fee + get a commission on the back end, run the construction and then you would have successfully flipped a property.

This is how you start building a track record. Once you do 1 or 2 deals you won't have problem getting money for deals like these.

The money is the easy part the REAL deal is the hard part. The problem I find is everything thinks they have a diamond in the rough but they really have a turd in the yard (just made that up btw)

If I weren't in San Diego i'd be all over that deal (based on your numbers and assumptions)

Lights, hardware, cleaning, have you considered taxes on the material?
Not sure how you can put in 144 ft of fencing for 500, that's 3 per lineal foot and wood fencing is 10 per foot for material almost.

Does the water heater work and strapped? What about the heater? Do you have gfci plugs in the kitchen and baths?

If the took a bat to the place have you checked the plumbing to make sure they didn't do the ol cement in the drains trick?

Looks like your close though. Jv with a contractor or get a hard money loan

If you have a good written plan demonstrating you understand your project, you have a team in place and a good exit srategy and your numbers are accurate you can probablyget away with only having to come out of pocket for closing costs, holding and construction costs.

Curious -

Why don't people just get their real estate license instead of trying to wholesale a deal? Sounds like a friggin pain in the neck to try to wholesale UNLESS you are capable and willing to buy it yourself if you can't wholesale it.

Btw get a good realtor who has experience with reos and investment properties.
Your best bet is someone who owns properties themselves and does the same type of investing you want to do.

You usually always get an inspection period. You can back out for any reason during that time.
If it's after your due diligence you'd have to fight for your deposit back but I have found it very difficult to keep a buyers deposit unless you can show damages. I wouldn't risk it if I were you.

As far as requesting repairs you have to look at the whole picture. Are you asking for a new roof when it was obvious it needed a roof before you got it under contract?

Now of you can bring a new unknown condition like maybe foundation, sewer line etc. You MAY have a shot IF you document it with an inspection and back up bids.

Good luck.

If you go to my latest blog post (the cat pee house) that house costs us about 20k and it was a light rehab (There was an additional 15k to remove the septic and hook up to the city. But the construction was about 20k)

I do a lot of these and get great prices. I also know my costs to the penny.

11k is REALLY cheap. I own a construction company and can't even do cleanup, landscape, paint, flooring and appliances for that.

It's the construction end where I see most people mess up with their numbers

Rehab costs are running me about 30-50 per foot.
This looks like a good deal and my suggestion would be to get it under contract before you spend any more time on it.