All Forum Posts by: James Letchford

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $77,175
Cash invested: $55,000

Foreclosure in need of full renovation. Before and after pics attached.

ARV: $189,000

What made you interested in investing in this type of deal?

Home in the area where I grew up.

How did you find this deal and how did you negotiate it?

Online auction.

How did you finance this deal?

203K / Homestyle

How did you add value to the deal?

Full renovation

What was the outcome?

Fantastic townhome that has been rented out going on 3yrs.

Lessons learned? Challenges?

It's very easy to over-improve if you don't really stick to a solid budget.

I have a friend who would like to put some of his money to work in my real estate investments. He currently has an IRA with ~$55K in an UBS account with a number of market investments. The investments are marginally performing.

Because he wants to invest in what I'm doing, I'd like to make this process as smooth as possible. Here are my questions:

1. What does he need to do in order to convert the current UBS funds into a Self-Directed IRA?
2. Any recommendations on who to convert with?
3. What type of fees, tax implications, etc are associated with this conversion?
4. How long does this process normally take?
5. How soon after can he start using the funds to invest?

Thanks in advance for any help you can

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $47,500
Cash invested: $102,000

Property with need for oil remediation. Full renovation. Before and after pics attached.

ARV: $210,000

What made you interested in investing in this type of deal?

The challenge of purchasing the property with a large remediation project ahead caused a lot of the competition to go away.

How did you find this deal and how did you negotiate it?

MLS.

How did you finance this deal?

Cash purchase w/construction loan re-finance.

How did you add value to the deal?

Full renovation, inside and out.

What was the outcome?

Fantastic little property with over $50,000 in equity and $500+ monthly cash flow.

Lessons learned? Challenges?

Timeline for rehab can really effect how much money you make on your deals.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Upen Patel @ The Federal Savings Bank (Lender)

Frank - Send me a DM. 

Thank you both, @Jim Cummings and @Matthew Olszak. I really appreciate your advice and participation.

One of my tenants just contacted me and let me know that the unit (that is owned by another landlord and occupied by a tenant) sprung a leak from the washer unit in the laundry room. The water from the leak has seaped under the shared wall between the units, saturating the drywall and underneath my laminate flooring.

I contacted my insurance company to look for their suggested course of action, but they didn't really help much. I don't think I should be responsible for the damages.

Can anyone make some solid suggestions? Is this damage on the neighboring landlord or renter?

Thanks in advance.

Skip - DM me and I'll connect you with someone that may be able to help you.

Michelle - Please add me:

[email protected]

Manolo - So I'm clear, are you looking for a good contractor to do the work?

BP - I promised an update after coming to some sort of resolution on this property.

After applying some pressure that @Josh Caldwell recommended, I was able to instigate further negotiation with the seller. After some back and forth, here was what we were able to negotiate:

• We would enter into a new agreement in which I would turn over the results of the soil and foundation testing. In return, the seller would put the cost of the testing ($3,800) into an escrow account.
• After receiving the test results and remediation proposal, the seller would take it to their trusted environmental service company for their proposal of work. This contractor would provide a bid, SOW, and contract for the project.
• Once we received the SOW and costs, we would have a better negotiation point.
• If we couldn't come to a new agreement, the $3800 would be released to me and we would go our separate ways.

Ultimately, the new proposal came in significantly under the original SOW/proposal and we settled on a cash purchase of $52,500.  We closed on May 17. The remediation of the property will begin next week.

I'm very excited about this property; mostly because we methodically took the proper and prudent steps to protect everyone involved. We didn't cut corners, we were transparent about our intents, and remained focus on the long purchase (9 months). This should be a great property.