All Forum Posts by: Josh C.

@James Hamling

That’s great. And if the market goes up and rent goes up you’ll make a mint on your bet. No problem there. But not everyone can afford to that and this guy flat out said he doesn’t have money so he can’t make mortgage payments on a mortgage he likely can’t get anyway while he waits for his A+ tenant to pay first and last.

But besides that losing money right off bat even makes me a property manager and a general contractor nervous. Not sure I can stomach that. But the 0 maintenance is pretty awesome I do agree. I own a lot of 100 year old places and old foundations and broken clay sewers aren’t fun.

Good for you but the hesitation is understandable. Have you looked at building small apartments that could CF day one? Seems that would be amazing.

@Brent Huling

Being attacked. Lol. We just disagree with you. That’s ok. You said house didn’t appraise. You said house appraised for contract amount. which seems to be 1.5MM. Which is it?

I would think it's hardly the problem of the sellers that you calculated your ARV wrong and they should pay for that mistake. Your contract likely has an appraised contingency, but that would be the as is value and not the future value. Also, you usually would be required to provide that to sellers to prove that anyway. I think a judge would laugh in your face. But that's me.

Can’t be mad about free markets. No one is taking advantage of you or extorting you. Strong offers win period. I haven’t accepted an offer in 2 years with less than 20% down because I don’t want to deal with there additional bs the lender puts everyone through. So people that didn’t or can’t save up 20% aren’t able to buy those houses and might feel like you.

That’s unfortunate everyone doesn’t get what they want all the time, but in a free market with low inventory there are going to be a lot of people left out.

At the same time I haven't offered anything but cash and no inspections in 2 years and I remember 7 or 8 years ago getting seller financing offers accepted on MLS homes. Just the current market and we can accept that and adjust or sit out til we get what we want.

@Sarah Moncivaiz

You likely don’t have a law about removing tenants in this manner. However, as Nate said did you talk to them? They probably don’t want to stay there without plumbing. Most people enjoy working toilets and hot showers.

I would offer them a couple of weeks if free rent as concessions for moving unexpectedly.

Or you can try to schedule it so they move in with family for a few days while the work is being completed. They can stay there during the permit process etc.

Sounds like they are just dealing with you. Also that’s a big spread if your numbers are right. I will say doing a 200k rehab is hard to complete under 6 months. My always take longer. If you feel another 10k would get it done seems worth it based on your numbers.

Different areas have different laws I guess. Indiana doesn’t. We either get a big draw upfront or we don’t do the work. Every good contractor I know operates the same. We care about our rep and would never bail on a job. Homeowners/investors have no rep and might not pay therefore we need upfront money as insurance. Only desperate (likely bad) contractors will do anything but a small job without a draw in our area.

@Bruce D. Kowal

I didn't click on the link and I see your accountant so I'll tread lightly. But did that change really recently and are you sure? Partnerships doing 1031s is very common and we see those transactions in our business often. Two years ago I did personally was involved in a 1031 that a partnership LLC owned.

Just wanted to make sure the right information was out there and people don’t get the wrong idea.

I would suggest getting a part time job in the trades. Working on real estate yourself is a huge asset when starting out and you have no money. That’s what really helped me early on. Continuing to read on BP and listening podcasts is great as well.

Good luck!

If you don’t want the house. Don’t want to fix it. Don’t want to pay the taxes on a profit. The easiest solution is just sell the house for what you bought it for then you don’t have to fix anything or pay any taxes. Easy peezy.

The smart choice is deal with it and fix it and sell it and pay taxes (or keep as a rental), but non smart choices are made everyday in RE.

Also find this very difficult. I still work a lot and really enjoy it, but am the owner and don’t like saying that. I usually tell people I work at a Real Estate company. I feel like it if I told people “I own companies and lots real estate”, they would think I was a jack A.

Does get weird though, I was once at a fancy fund raiser deal and some attorneys I knew from high school were trying to convince me to go back to school to become a lawyer like them. I said I was happy. About 5 minutes later someone came up and said, “I heard you were going Costa Rica for a month! So happy for you.” And I had some odd looks from my high school friends and the questions kept coming, lol.

Might start just saying I’m in real estate, but with all the house flipping shows around that might just create more problems.

As we all know the moment they find out you get same questions: how many rentals do you own? Do you flip houses? Aren’t you worried about a crash? Aren’t you worried about interest rates? Hey, my uncle had tenants who trashed his place so real estate is bad investment.

I just changed my mind. My new line is I’m a taxidermist. Bet there aren’t any follow up questions.