All Forum Posts by: Corey Davis

@Ethan S. If you're looking for investments in Portland drop me a line. I'm in L.A. Right now, but will be living up there in February, and already starting on several projects.

@John Malahay thanks John, I should have mentioned the most important part... I'm using hard money.

The house JUST went on the market.

My wonderful agent dug up an off market SFR in Portland OR that's listed at about 20k less than it's comps in the area(short sale). That's if you're using the tax recorded number of rooms, baths, and square footage.

Turns out this little 700 square foot 2/1 has a converted garage with its own full bath and kitchen. So now it's a 1000 sqft 3/2, or a duplex. The problem is not all of the permits were pulled before the work was finished.

So, I can get the property for 100k. As a 2/1 700 sqft it's going to sell for about 130k. As a 3/2 1000sqft it's going to sell for about 170-180k. Those are current market values both my agent and I have worked out. The house sits on a corner lot in a neighborhood projected 13% increase in value this year. I REALLY want to flip this house. But...

I don't have any experience getting permits for work that's already done. If all permits were in order I'd be looking at about 15k total for rehab. All of the work is 90% done.

What's my first step on this? Or am I walking into a flaming pile of burning disappointment?

I was handed the deal 4 hours ago. I haven't had the chance to speak with the city yet, or a contractor. It's after business hours and now I can't sleep.

I will often hire out the photo/video work on properties, because I myself am a photographer, and I know it takes all day to get the right shots, and then another day to edit them. I personally value my time at a certain dollar amount (right now it's 100/hour) so doing it myself, regardless of not having to pay someone else, a two day job is going to cost me the loss of funds I'd normally be making elsewhere.

If I know one of the photographers I work with can do the job for a couple hundred dollars, I always hire out.

That said, the ONLY reason I ever use my own pictures is because I have the professional gear and 10+ years of experience as a photographer. So if I absolutely can't hire it out, I trust myself to do a good job.

I've never paid more than 600 for a full package. (50 edited photos) but I've never paid less than 200. I feel like with photography, you don't always get more by paying more. Seeing the portfolio of a photographer before you hire them, and comparing to the others on the market will get you a better deal than just paying top dollar.

I've seen photographers charge 1000+ for packages, (100+ images HDR) but I've never had a property worth a million bucks or more, that's the only time I'd ever consider spending that much.

I love sites that have video walk through, but I've also seen so many of them that I wish had NEVER hired the person they did you talk through the tour, so much so that I think good photos would have been a better plan.

Good photographers are an essential part of real estate. All real estate gets listed on the internet now. No one is driving around looking at a bunch of properties without seeing pictures first. The photos are you first impression of a property, and, much like all things, that first impression will make or break interest.

The average DIY enthusiast can pick up a thousand dollar camera setup, watch free tutorials on YouTube, and be producing quality work for their own purposes, and maybe even for other people, but it's a serious trade to learn. It takes time, it takes understanding, it takes gear.

If you don't want to be a photographer, hire one who already has the drive and knowledge, and save yourself some brainpower for what you're already good at.

After this thread I managed to speak face to face with some seasoned financial advisors. It's not uncommon for an LLC to acquire multiple "credit partners" for huge multi million dollar projects.

I'm in the multi thousand dollar range, ;) but I'm going to try and follow the same structure.

Obviously, the benefits of having a credit partner that understands real estate investing sounds like the right move, though I've been advised to find non real estate type investors, so that they stay focused on their position within the company, instead of becoming involved in the real estate aspect, therefore keeping the number of "cooks in the kitchen" manageable.

I get that, but I'm on the fence. I can also see great potential in having a credit partner with a grasp on what I'm doing and why.

Any thoughts from the community?

I was hoping for more info than the Zillow on the properties. Still waiting on a response after I submitted my contact info.

I clicked on your link. Just a sign up page with no real info. So far I haven't received an email, how long should I be expecting a response?

I am speaking from years of experience handling the design and maintenance of three high end hotels in Seattle, Portland, and New York.

Cheap carpet wears out three times faster than carpet that's only twice as much.

If your flooring is top of the line, a few dollars a month increase will pay it off, and it's easy to get a few more dollars when your property looks spectacular.

No matter what you do or say, someone's always going to smoke inside, spill drinks, potty train a dachshund, practice naked yoga, and/or feed their kids too much sugar. Carpets collect all of those wonderful memories and keep them for the next tenant to breathe in during those all day television marathons. Carpets burn easy, stain easy, and stink easy. Concrete may not cuddle to your toes in the winter, but the last time I had to do major repairs on concrete it took 48 hours and cost about a hundred bucks. The last time I had to replace a carpet, it cost as much to pull it and dump it and replace the new one as it cost to install the original carpet... A year earlier.

The cost of solid flooring is often double the cost of carpet. The maintenance of carpet is often triple or more the maintenance of solid flooring. You're in Southern California, so people aren't often bringing the rain in on wet shoes. You're in one of the areas that concrete can actually make sense. Instead of waiting for your A grade property to use refined design styles, why not upgrade your property now with a slightly more expensive material, and save on the maintenance while possibly raising the status of your rental?

Just sayin...

@Gilroy Buller I formed a Delaware based LLC through Legalzoom. Fast, affordable, and transparent from beginning to end.

I'd highly recommend them for LLC formation. As far as your specific issues as to whether or not you are classifying yourself correctly, I think Bill Gulley laid it out completely.