All Forum Posts by: Eric Schultz

HOMEWYSE is an online resource that can be used as a place to start for “ballpark” estimates. You do need to know enough about the scope of work in order to generate a rough range of cost, otherwise it is just “garbage in, garbage out”. For more accurate estimates on rehab or repair costs, definitely engage at least 2 or 3 contractors to bid the work. Realtors and property managers are good places to get referrals. Then start your vetting process based on price point, character, commitment, capacity, etc.

**When building up an “opportunity fund”, a good long term option is to use high cash value life insurance. It needs to be structured correctly for purposes of investing (aka “infinite banking”). The dividends and interest beat inflation and are not correlated to the stock market or any real estate market. When the next recession hits, your funds will have been growing and be there to buy at a discount.

When deals are may be a good idea to just build up an “opportunity fund”. Bank savings accounts, CDs and treasury bonds aren’t the best long term option as they will lose to inflation in times like these.

The thermal seals are completely compromised. Do a retrofit (not a full replacement) with dual pane insulated windows on the problem area. Vinyl is usually the best price. The retrofit windows can be field measured and ordered to size. Anticipate any where from 4 - 8 weeks lead time and a one day install for just a few windows.

A crawl space with disconnected ductwork, mold growing on floor joists, leaking pipes, etc. It cost over $10K to mitigate the issues. 

$150 - $200 / door / month net cashflow in most Midwest markets. If you are setup properly, this is tax free income while the tenants build your equity every single month. In today’s market, it is still better than the products offered by Wall Street.

Run the numbers on Aimloan.com. I bet you can find a lower rate on 30-yr fixed with 25% down, especially with 760+ credit score.

New gas furnace and ductwork for $7k - $9k is a fair price range. Add on new AC unit / heat pump and coil and you may be looking at another $4k - $8k installed.

Keep leveraging your time and hustle to bring value to those with expertise and money. While you are learning the RE game, one recommendation would be to focus on time management. Schedule every single waking hour of your day for the entire week. There are 1-page templates out there for this if you want to write it down, or use your mobile device. Schedule in time each week for education, networking, interning, analyzing deals, walking properties, driving neighborhoods, meeting clients, etc. This will help you get really clear on where and how you are spending your time to move forward on your goals.

While discussing with the attorney, make sure to discuss asset protection under an LLC. Their are a few different options for taxation with an LLC structure, which allows some flexibility when bringing in partners.