All Forum Posts by: Frank Geiger

@Joe Villeneuve posts the realist content. I wish I thought more like that starting out. It's all about following your strategy to get to your end goal. Work your end goal, then find the best way to achieve that goal.

She needs to contact the property manager. They will fix it if the flooding is as severe as you make it sound. There are a whole bunch of laws regarding the habitability of a property that protects the tenant. Needs to be a safe and healthy environment. Usually, they tenant can pay rent into an escrow account of some sort until they repair the problem. I would not withhold rent or the landlord can begin the eviction process. Look up the state laws for the residence. 

No offense to you but this is why there are so many bad wholesalers out there. Are there deals like this? Yes. But you need to be able to accurately assess rehab costs. 20k will not get far. Secondly, you need to consider that the investor most likely has a lender. That costs money. Then, closing costs and realtor fees to list the property. So question for you, is the investor risking $120,000 to make best case scenario around 10k? An investor may take it as a rental. Depends on the cashflow and what type of buyer they are.

Have you considered waiting for a better deal? You fronting costs for 9 years and not collecting any ROI is insane to me. Is this HELOC your primary residence? That's even more risky. Things always happen and you WILL have to pay for tons of unknowns out of pocket.

@Timothy Chung Hopefully this quote was labor and parts (and even then about $200-$300 overpriced). Way too expensive for a simple sink install. You are making the right choice doing it yourself. 

To get out of the Army and start the next chapter of my life. I am using the income to supplement my W-2. Currently, I am two years from getting out and starting my business. 

@Ali Musliwala welcome to BP! Identifying the market you want to invest in is the perfect first step. I suggest writing down your strategy. You will want to reference it when running the numbers. I am a systems guy so next I would focus on lead generation. The more deals you have blowing up your inbox the better. Don't wait to find a PM. You should be networking with the rockstar investors. Don't waste your time calling duds. 

Congrats! That's a nice profit. I'm digging the American flag! Exterior looks good.

@Theresa Amouzou you have to be realistic about this. It's your first deal and usually only people with volume business get even close to 100% financing. Wholesaling costs money too. There are risker strategies like taking out LOC and Personal Loans but here is a safer strategy. Get your finances in order first and do the hard steps upfront like: paying down high interest debt, create a savings, then look into "having your money make money".

If you only have $1000 to your name, I would suggest looking into the safer strategy. 

There is a huge knowledge gap on construction costs for most investors. I have been renovating homes my entire life and honestly there is no easy answer to your questions. Having a detailed SOW before viewing the property will definitely help with any miscommunications during the rehab. A signed General Service Agreement will SAVE you if a contractor tries to short you on your finishes. Be as descriptive as possible and do not leave anything out. 

Walk the property with your realtor/contractor as many times as you need. The best advice I can give is to watch YouTube or search the internet to see how complex it is to lay flooring or drywall an entire house. In addition to learning the construction process, go to Home Depot or Lowes and price material. Put it into a spreadsheet. Once you have more experience you'll be able to estimate work hours/days more accurately.