All Forum Posts by: Dell Schlabach

Suburbs of Akron Canton is where we focus our rehabs. Selling is pretty easy if you have a good product, finding profitable deals is a bigger challenge.

Our group is on target to rehab a little over 40 houses this year, stark, summit and portage counties, excluding Canton, and Akron schools. 

About 70% of our buyers ask for radon inspections. Roughly half the houses tested have radon levels above acceptable levels.  

Cost of remediation is about 1,000.

The way we handle it, whenever we get an offer on a property and the buyer wants a radon test. We write in initial counter offer that if there is radon, buyer and seller will split costs, most buyers will accept that. If we don't write it in before inspection, they always want us to pay for it. 

Thus most radon mitigation costs us about $500. Not a major expense. 

There are plenty of good subcontractors in Ohio, assume gcs as well, although I haven't hired any, we act as our own gc on our projects, as do the other rehabbers we work with.

If you check with a local portfolio lender, they may be able to do it much quicker. 

We have a couple local lenders that will refinance right away. 

We close with cash, you could also use hard money, soft money (transactional funding) from a friend or acquaintance probably be cheaper. We start the loan process right away, within 30 days or less we are refinanced, and have our/transactional funding back. 

Dont know if you can find such a lender in your area, but we do a couple of these deals a month here, we dont have any seasoning issues with our bank, only criteria; they will lend up to 80% of appraised value, or in case of rehab and flip, 80% of ARV.

Good luck in finding a good loan officer, they can make your investing life a lot easier.  

@Rochelle Wilkinson

Get contracts and close on two rehabs we put on the market this week. Olentangy and Valley Crest.

Complete rehab, and list Chamberlin by Nov 15. Contract within a week or two and close before end of the year, closing 2015 may be challenge.

Start Diana Lynn Rehab Monday, complete and list Dec 4, contract before the end of year. 

Finish and list two rehabs that we are doing with separate partners,  (cactus and callander)

Close on three buys we have under contract.

Get eight more (4 per month) deals under contract, sell four of those wholesale to rehabbers.

Finish real estate classes before the end of the year.

Take a few days off, plan strategy, structures, partnerships for 2015. 

• @Andrew Fisher I seem to have messaging trouble as well.

If you are interested in talking real estate, exploring ideas. You can email me (address in profile) to set up a meeting. Typically meet a couple investor, partners, contractors at local coffee shop on Saturday mornings, if you are interested. 

Welcome to Bigger Pockets

@Andrew Fisher, good to have you here, as a contractor, homeowner with a paid off  mortgage,  and a few rentals under your belt,  I'm sure you will have valuable insights to contribute to the forum.

The most sucessfull, profitable rehabbers I know locally are also contractors. 

Good to have you here!

He is in our mls area, I've anaylized a lot of his "claims",  if you search josh cantwell  in the search button you will find some of them. 

 The distortions of truth, hyperbole  and outright lies about his sales, days on market and profits in his other strategic coach training programs are enough to make me seriously doubt his rehab funding program is any different.

 We use Colonial Title in Canton, investor friendly title co.

Don't know where you are located, but Firelands Title out of Hudson would be a good choice as well, very investor friendly and involved in the NE Ohio Investor groups

risk vs reward

My inclinations are similar to @James Wise if the comps are there and you can make 20-25k, and sell it quick with minimal headache, and I can get my money back to invest in something else, I would do that in a heartbeat.

I have done lease options, some worked but many of them ended poorly.  Maybe you can sell the property for a few thousand more by doing lease option,  but it is also very likely your buyer won't be able to get financed in a year, its very possible he will walk at that point and you have to sink money into the house again to sell it to another buyer. 

In regard to making more money by not paying taxes as earned income.

Capital gains rates at 15% if in  25% tax bracket, on 20,000 profit gain is 2,000, while significant, to me the hassle, the delay, tying up my money, and the potential for greater loss if the buyer destroys the property... would not be worth the potential increase profit. 

We all have different risk reward tolerances, cash needs, consider them then you can devide what's best for you. 

Congratulations on completing a successful profitable flip! 

Are you planning on doing equity split with the investor, (more complex) or borrow at a fixed interest rate. We do most of our rehabs with private money, in the beginning we did a lot of profit splits, today we don't do that anymore. Fixed interest rates rather than ewuity sharing really simplifies the paperwork. 

Typically the property is titled to us and the private lender holds a mortgage and a promissory note and is added as an aditionial insured (very similar to the documents a bank would require).

We have a couple people that invest via their sdira, we close with a title company, they make sure all the required paperwork is in order.