All Forum Posts by: Don Hines

I didn't know this could/would happen. My builder's risk policy will expire next month on the 6 month anniversury. My agent really couldn't give me an answer as to why except to offer me an uninhabited policy unless I could provide an reason the company would accept for the length of the rehab. The reason I am not finished yet is because my job got in the way. That ain't acceptable. I don't know if this is a plot for more of my money or not.
Don

On the otherside of the rehab, I don't want to be the mostest or the leastest.
Don

I have problems competing with owner occupants for the purchase of light rehabs. I still offer on them. But, I am generally blown out of the water by the competition. If it ain't ugly, I don't get excited about my chances of purchase.
Don

Learn what realtors represent the REO's in your area. The banks will not give you the time of day; unless, they are a local/regionally owned bank. That is the type of bank I deal with and still, I am refered to the agency/broker that represents them.
Don

Ditto the wife is the decorator. I could do the cookie cutter thing if she was not involved. I get in trouble when I venture off into her area of expertise. But, it is perfectly alright for her input on plumbing, electrical, foundation,ETC.
Don

Most of my rehabs are DYI. So, I let my wife think she is the boss and all is well. There are plenty of threads on this subject that will tell you more than I can remember. Keep each seperate project close (or under) to your guesstimates/budgets.
Don

I didn't understand from your post, what the exit stratagy is. Rehab/Flip or REhab/Hold?
If you are flipping why does the $50k loss in a write off bother you. If you are holding, you should still be more concerned with cashflow than a write off.
I can't tell you anything about the LLC question. I am currently using one of the types of banks J Scott suggests. I intend to create an LLC on my next project and see if I have enough history with them to borrow and purchase in the LLC name.
Don

Me Too!!!!

With $80k spent on the total rehab and purchase, you want an ARV of around $110k to come out. Don't underestimate the cost of a rehab even with Uncle's help. I am neck deep into a DYI rehab that I thought would come in around $30k. I am at 25 now and can see another 10 needed. It will not put me in the hole. But, tells me I need to learn more about guesstimating expenses.
Don

If you DYI and have a big belly, upgrade the kitchen outlets before you install those new cabinets. They will be much easier to reach.
Don

I DYI and extra 1/2 bath similar to your prject. It cost me around $3000. I thought I had ruined the project when I crushed the main drain line. Older pipe is thin on the bottom. :cry: I ended up cutting it with a grinder instead of the tool real plumbers use. :lol:
Don