All Forum Posts by: Charles M.

@Steve S Its a mixed bag. If you're buying enough that you're willing to deal with an eviction or surprise big ticket items it can be worthwhile, but if your volume is low then I probably wouldn't consider it unless its a really great price.

I have been working with wholesalers recently in order to increase my deal flow. When doing this, I found a likeminded person who I think I'd want to work with. We were speaking about a potential deal as follows.

Him: Good lead gen, contract assignment is a bit high, very open and easy to work with, no time to go to homes, not a lot of knowledge in estimating rehab costs

Me: Also open and easy to work with, or so I like to think! Cash investor, decent amount of time, most of my day spent looking at homes already, no income other than rentals, accurate rehab estimation.

I think this works for us both, but the reasoning for me:

• Only 1 stream of income
• I already look at houses all-day
• More reps at houses doesn't hurt
• Can still manage my rehabs and tenants while doing this
• Already have sales experience
• I enjoy it
• Hand selecting properties
• Literally no lead gen of my own

The big question is compensation! Of course as an investor, I'd like to actually be able to pick up some of these deals. This is something we both agree on, but he still needs to be compensated on everything up to getting the appointment.

To clarify.... his work is everything to get to the appointment through his lead funnels. My role is to go out in person and close them. 

What is a fair split if we sell the contract to someone? 50/50? What is I sell the contract to someone I know?

What amount is fair to pay him for the contract assignment I'm able to close? Note he will not have to spend time to sell the property to his cash buyers.

I don't think we'll ever see an abundance of deals in RVA!

No but really - For me, right now, I probably have an abundance of deals. I have only ever worked on 6 projects with 3 current BRRRs. I'm looking for 4 and 5 over the next month, so I am definitely looking however, when I only had 1 property, I felt like I had to go with whatever came first. Perhaps that is a common thing, or that's just me, but after locking down 2 homerun deals I'm now looking at 4 and 5 extremely selectively. I am having to pass on quite a few things, but this is because now I'm looking at more options also. My properties previously were from MLS and auctions, but now I've added the off-market component and have established relationships with wholesalers so my property selection is stronger. At this point, I have a completed property, property with a tenant waiting for the refi and one that just started its rehab today. I'd like to have one property in each stage of the cycle that way I don't burn out or make colossal errors. I'm the same way with time management, but my major fix was to not worry about doing sweat equity rehabs, or do my own lead gen and simply manage the projects coming through the pipeline and find new deals. Have you ever tried a virtual assistant? What was your experience like?

I'm looking at new development in my market since I found a good deal on land. Its an extension of an existing neighborhood that fits my target property perfectly both in location and sizing. I've never built a new home but this property has been approved for 10 homes already. I'm wondering what costs I will need to consider when analyzing this deal.

The road, water and sewer will need to be extended from the existing road ending to provide access for the 10 lots. There aren't any requirements from the county (like road drainage etc) other than actually having public sewer and water connections made by us. I'd like to get an idea if anyone has experience doing something like this? What is a typical cost for water and sewer hookups for a singular lot, and what kinds of discounts are available for multiple water/sewer hookups and road being created at once?

I've gotten myself into quite a situation since March. After closing my personal training studio I have been looking for alternative ways to invest and have loved reading through this community over the past few months. I have 3 properties currently. One that is fully rehabbed with a great tenant and has a private loan on it with a cost basis of 10K. The second property is also a home run with great upside and has already been fixed and I picked it up off auction. Unfortunately this property has a tenant who I am having to wait until July 1st until they're out of the property. The last one is at the start of the phase and should be closing in around 10 days. I have the cash to close and rehab, but I'd like to be able to get my 2nd rental (the one with the bad tenant) refinanced once I make some of the changes necessary to the property and get a solid tenant in there. Obviously once I have the new tenant and fixed property, I want to be able to get the cash back out of the home to put into the next deal. So what are my options?

- I dont want to wait 6 months for Freddie mac

- 635 credit score (only just started using credit this month)

- no mortgage history on prior 2 homes that I have owned

- no job and no income for past 2 years (i reinvested everything back into my personal training studio which I decided to let go after covid)

- have access to some private capital

Sorry for the formatting - on mobile. 

@Patrick Pierre I would say no, absolutely not! You just have to account for this expense as if it is some closing cost. People listen and talk money, so most of the time you can get your way although with Covid we don't have a lot of rights.

To recap on this home - It has a comp that just sold for $250K! I bought it for $157,500 and have this small eviction loss. The only systems it needs is HVAC and some small bath remodeling. I would 100% do this again.

There was $520 for rent (which isn't even the correct amount) on the HUD statement.

UPDATE: Finally was able to get a verbal agreement for a situation that works for both parties. The biggest problem was getting her to the table.

First I started by apologizing for the entire situation and listened to her concerns about everything. Why she can't move out til mid-July etc. Why she felt that she was being pushed out. I apologized, listened and gathered more information. I told her about my perspective, and how this is what my family has in order to support ourselves to put her in my shoes for a moment. I explained that I wouldn't be able to pay off my partners, contractors or the loan (none of which I actually need to do except repairs and my contractor) if she stayed there. I also explained that if she can't pay rent now, why would I want to continue the relationship. So I offered her to stay in June completely rent-free, with a return of her deposit (which I had not recieved from the seller) on July 1st after she signs things and returns keys & offered her $200 in credit to a moving company.

Total Cost:

$1175 - Rent not taken for June

$200 - Moving credit

$1175 - Returned deposit

I don't see any signed document exactly related to the security deposit, but I can check with my Lawyer to see if that information was communicated by email by their representative. If they did this through a call I suppose I'm not able to recoup that.

Cost if successful litigation: $200 + $1175 lost income for June

Cost if unsuccessful litigation: $2550 

I had a lawyer with me at closing. All we are told is that there is no lease agreement or deposit with the tenant, and by doing so we can't exactly get any more information. If they are going to lie, which they clearly have then yes I am able to pursue them for the damages.

@Frank Luna Hey my bad that was a bit much. Its been a long day and that was a lil blunt and non-productive. Thanks for weighing in.

@Beth Matherne Thanks for the vibes! Yeah I know it will get better, it is just frustrating to actually have to evict someone from the property yet feel powerless in the situation at the same time. Still collecting information on her will keep y'all posted.

Okay the tenant has produced a document that appears to be unsigned but still getting more information.