All Forum Posts by: Marcus Geiser

It seems every lender I have tried to deal with conventional wont work credit is not good enough. Working on it... Close.

I own my home. No Mortgage.

I own a Duplex that needs $40K renovation for $90,000 ARV Renting at $750 per side $1500 month. Aliquippa, repository property.

Good income, $5000 working capital, but the renovation will stall self funding to the tune of a couple grand a month. 

I also have another property under contract for $55K, $30K Reno, $125 ARV in a great school district, perfect flip or turn key for buy and hold. New Roof.

I also have a commitment to purchase a home on the same street that is nicest on the street, maybe cosmetic updates, well maintained. 

I could really use some direction, currently working on projects in Aliquippa, PA.

I have a SFH under contract 3/1 with a new roof in Quaker Valley School District, ARV $125,000 to $135,000 have a good comp a few doors away from 2/2/22 SOLD for $145K but was a 2/1.

Up to this point  my experience has been on the Contractor side of the equation. The property needs a renovation of $30K, which I feel is adequate, I mean I'd price the job at that. 

I understand the process but have never gone through it. Any suggestions or help are appreciated. 

I just has a similar deal close up. I purchased a property from my Father-in-law. It was a very simple process. We had a deed created by an agent. Went to the recorder of deed and filed the paper work. All it took was a signed and notarized deed. All handled by the agent. We purchased the home for $1 and the transfer cost less than $200. I planned on a whole day affair, I was at lunch in Robinson by 11am! The deed came in the mail less than 2 weeks later, yesterday actually. 

When you begin the research the first thing to consider is will that third floor apartment need a fire escape? This could in and of itself be a $10,000 plus project. Here is the link to to the City of Pittsburgh Building Code: BUILDING CODE. If you need help interpreting the codes I can help. If I were you I would make 100% sure I completely understand my exposure before doing anything. 

If your goal is to flip... I would suggest finding someone to be boots on the ground with construction and remodeling experience. They can help to analyze deal by providing solid renovation budget numbers. Many wholesale deals I look at have unrealistic rehab numbers. Build your team starting with a good agent. All the guys above are the real deal and can help. After the purchase they can help manage the project and ensure timelines are met. 

A sober living house is a value added service. Keep in mind that there is a lot more to it than a typical rental. You will need to furnish the place. This means having a bed for every resident. You be responsible for all the utilities. You will have to have a set of very clear rules, consequences for breaking them, and a way to maintain oversight. The resident manager, house manager will assist but at the end of the day it will be your responsibility to ensure the goal of having a sober living environment is met. There are many other considerations it is a worth while venture if you are looking for more than cash flow. Helping people should be the real goal, the cash flow will be a result if it is well done.

@Pinank Parikh Pursuing a JV deal with someone like myself who can manage the work load of a flip? Then flip to yourself and use the funds to repeat? It is a solution that provides a turn key with a little extra work and the reward of the equity. If your looking in Pittsburgh I'd be glad to help.

What do you provide in your deal package? Some of the deals I see are barley recognizable as deals. They seem to have the minimum of effort put and expect a big assignment fee. The more the fee the more worked out the deal should be. Renovation budgets, detailed estimates of repairs, pictures inside and out, and not fluff show me the problems and propose solutions. I include recent sales, comps, DOM, everything I use to put together my deals would go with the wholesale deal. I can even nail down the renovation cost with an estimate from a licensed contractor that will be good for the buyer if the close and start work within X number of days. 

Too many wholesalers seem to stop working after having a purchase agreement. 

Sorry, first and foremost I always make sure the roof is good and the windows are closed and not allowing access or air. I follow that up with securing the house and making sure the doors lock. Once I am sure no water will ruin the work I am doing I begin the project. I have been considering using alarms or cameras or something because I have had some issues with security, so I am looking for a security solution. Rehab houses are like advertisements that no one will be there after hours. 

That is a very involved answer you are looking for, 

1. Demolition
2. Plumbing
3. Electrical
4. HVAC

This is my general first 4 every time without fail. Your contractor should be able to assist in scheduling the tasks needed to complete a rehab. He should also be able to explain in detail why projects are be undertaken in the order they are. If I can help you in any way reach out. I can meet in person if need be. 

Marcus Geiser