All Forum Posts by: Evan Wiesner

I've never been a fan of escalation clauses in my offers but I've used them plenty of times. I'm always a proponent of understanding your metrics and what works for you and just making the right offer according to that. If you know you can pay 35K and you think you might lose it at less than that, then you need to be ok if you offer 32K and don't get it. 

I have lost on deals when I put in an escalation clause because they assumed it was a way for me to simply pay less and it was viewed as "screwing" with them. That perspective is rare, and usually from inexperienced agents, but it does exist also. 

I love Des Moines, Fort Collins, and Cincinnati for that. Fewer investors overall, colleges, growth, places people want to live (NE Cinci BTW). Philly is going through some crazy gentrification but if you aren't from there, I wouldn't try it. The locals will pick you apart and if you buy on the wrong street you're in deep trouble. The urban sprawl of Florida and millions of investors would scare me away. North Chicago is decent but spendy, south is rough and not to be messed with if you're not local. Indy is loaded with hedge funds that have moved in on the tail end of the rental boom (along with KC and STL). 

Figure out Des Moines and I think you're golden. Growth, jobs, seasonality you can deal with, fewer big time investors, and a great streak of gentrification going on. Look north to northwest up around urbandale maybe. 

Try to find the house they will move in AFTER college, not the one they want while they are in school. Fewer headaches, longer term tenants, more likely to pay.

I think you have an opportunity to buy a small multifam (3-4 units) and house hack that you can keep one unit for yourself as a primary residence and have the mortgage paid by the renters of the other units. Now, there are a lot of variables in that but if you bought that in Providence, and did it right, you could rent a place in NY as a second residence. Financially you might end up in a wash at the moment but you would be building equity and an investment property in an area that's more affordable while maintaining a place to stay when you visit your parents.

Sooooo many variables involved in doing that but I just wanted to put it out there that if it works for you, it's an option to take a peak at.

@Christian Wilson you're in the position that I learned WAY too late that I wanted.... before you buy your first property there is a way to house hack 2-3 multifamily properties in a row. Find a good mortgage broker who will guide you. FHA loan first, then conventional, then hopefully a plan for a 3rd. If you do it right you can get through 3 of them in 5-6 years with other people paying your mortgages along the way.

Think about that..... if you do it with duplexes that's 6 rental units.... triplex's and you're at 9...... by then you're moving into a single family house in the burbs and your renters are covering their own mortgage, capex, and maybe most of your mortgage. It's all about planning.

Even high end remodels shouldn't exceed $65-$70/ft in Portland, where we have some of the highest construction costs in the country. That being said, if there's foundation work to do it would eat up that gap very fast since we're short on that trade. 

I'm with the others on this one, 100K should include value add, living space add, and everything else as well. If you're ending up at 1500ft and full rehabbed then it might make sense. 

My favorites know their market inside an out. They can find a contractor when you need one, see the vision for the project, control timelines and budgets like a COO, communicate clearly and effectively with either side of a transaction, and always have "a guy" when you need one. They are connectors, relators, communicators, deal makers, and my favorite...... bulldogs.

@Annie Li I think you're getting really good advice but I want to add one thing..... be strong in the verbiage. And be precise. 10K escrow holdback to be released only upon buyer inspection that the property has been delivered in broom swept and vacant condition with no additional damages since initial inspection of property. Funds not to be released until buyer delivers in writing to escrow unilateral acknowledgment of acceptable walkthrough within X days of vacancy. 

You get the point. Burden of proof on them for delivery, and only you can accept it and release funds.

Also, I would consult an eviction attorney and see if you can get a stipulated judgment for the eviction and make that a requirement as well. Then file the eviction at day 4 and by the time the hearing comes they will either be out or have agreed to a judgment against them. It doesn't work in every state but even if it doesn't, a good attorney can help you use it to avoid the eviction.

Most investors forget that every time they make an offer they need to add it to their pipeline. Just like brokers are building a network of possible future deals to nurture, investors need to do the same. Whenever I make an offer and it's rejected I respond with a "thanks for the consideration, just to let you know if the seller ever wants to reconsider please let me know. I will gladly re-look at the property and see where we are at that time." The courtesy goes a long way and I get callbacks before reductions when dealing with a good agent.

@Allen Smith you're in one of my favorite markets! I LOVE Guthrie for flipping!

No matter how you do this part, be methodical. When I've trained people it's always been with a very simple system to begin with.... room to room.  No joke.  

Go into a room and label everything you need and want to do. Flooring (how much), lighting, switches, cabinets, etc. Whole house items, exterior, landscape..... everything in every room that you will touch. 

As simple as that sounds, by doing it you'll create 1) a list of your materials you need (most of which at first glance we all overlook our first time) and 2) a clear expectation for both you and your contractors/trades of the work needing to be done.

You'll also identify questions you still need answers for (can lights or pendants over the island in the kitchen? paint colors in the bathrooms? flooring transitions from the living room to the hallway?)