All Forum Posts by: Justin Polston

I hand it to all you guys that are able to invest across 6 state lines. 

How did this ever turn out? Because Hansen just showed up as the current employment reference for va $1350 rental I have.

It's easy to see now that a rehab itself is a loaded question, besides the one you asked in the thread starter.

A rough "BALLPARK" figure that has always worked for me is to literally count up the retail material cost, double it for labor to end up with your total BALLPARK cost, and even add 10%.

If the final cost just doesn't seem right, then you have a not straightforward job. For example, this doesn't work very well for high end rehabs ($50,000 kitchen doesn't cost $50,000 to install). However, for quick fix and flips in suburbs/vinyl villages, this is a quick go to for coming up with numbers you need quickly

Another example, someone will probably paint $500.00 worth of paint for about $500.00 if you assume cutting in walls, ceiling, and trim.

I always go back and adjust up or down as I see fit, but I do most of my own work and recognize what's worth paying a lot of money for, and what's not.

Hi all!

It's been awhile since I've posted - been very busy! I'm hoping someone knows someone who knows someone trustworthy in the specified area I'm looking to relocate for personal and business purposes.

I've got approved for my first line of credit against several properties I own in Indiana, and I'm looking to potentially relocate to Collier County, FL area within 18 months, and I'd like to connect with professionals there who have a keen sense of the market.

I'm an agent in Indiana, investor friendly as I'm an investor myself, and will be in the area beginning of may for a couple of weeks.

If anyone has a good network there in that area, or knows of trustworthy professionals that would be willing to talk to me about some homes/investment opportunities/employment opportunities, that would be great!

Thanks BPers!

I wanted to let everyone know the recent important news for me individually and those still looking for traditional financing. I've had several properties with plenty of equity for some time now, and I finally received approval for bank financing that will help in raising my personal portfolio to the next level! This is something I find important because many normal institutions around my area don't do commercial loans unless you have a golden credit score and can show proof of liquid funds to repay the loan back ten times over.

I also hope this helps new RE investors keep their heads up when everything seems to be throwing you to the ground. You don't have to read everything below this paragraph, but those of you searching for financing, please know that with hard work, sweat, and answered and unanswered prayers, it can be done!

I know the following seems dramatic, but it's my story leading up to this point in my professional career, and I'm hoping it will help those discouraged with bank turn downs to keep striving to reach their goals and begin using OPM. It was actually my original post, then when I was done...I noticed how lengthy it had gotten. Enjoy if you do read! The first paragraph is enough to get my point across

For the past 7 (going on 8) years, I've been investing. Not like the normal folks on here, posting their out of state REI questions with the normal cost analysis. No. My strategy has been anything but normal. Obtaining funding from a private investor, every single one of my near 20 flips has been without bank funding. I've been shelling out 15%/annum, paying $2500 in origination fees for each deal ( and sometimes a closing fee on the back end). In the end, my potential profits are cut in almost half due to such high financing costs. But, if you want to buy real estate and the year was post 2007, your options are limited. Especially when your credit history is limited due to age.

I've checked in with banks every 4 to 6 months since late 2007, diagnosing their appetite for financing my deals. Each time, I was met with an emphatic "we don't touch those anymore" or "we can't consider your income, income". So, I kept doing deals and living off of the limited income because this is what my heart was set on. I kept going to school and paying for college, picking up real estate law and entrepreneur courses as my optional classes. I was going to be my own boss and do what I loved to do.

As the years have passed since 2007, I watched regulation take over commercial lending. I decided to start calling those gimmicky red and white "for rent" or "for sale by owner" signs in the yards. I was going to buy homes on contract to expand my rental portfolio, and I acted like my life depended on it. 1 respectable deal came into fruition within a year. After calling about 100 phone numbers, hearing "NO" 95 times, and figuring out quickly that out of the 5 that were interested, 4 of them obviously had no interest in making a deal that didn't line their pockets, I made a deal.

I acquired my first commercial down town property on contract. It was big, and needed work, but it was stout. I rented the downstairs to a gentleman who counsels, and he rehabbed the downstairs to a certain level of mutually agreed expectations. His rent made my payment. I leased the upstairs 2 bedroom apartment to hard working tenants that worked off the rent as I kept buying and selling flippers. Soon, the building was coming into shape and it looked like a respectable brick troubadour on my small town down town street.

It had been a couple years since I checked in with banks. I had worked with a real estate investment firm, and also received my Realtor's license. But I still wasn't getting ahead quick enough. It was time to see what banks had to say one more time.

So a couple of months ago, and just over 7 years after my first RE deal when I was barely 18 years old, I walked into a new bank in town; it was a Savings & Loan. I mentioned to a banker what I did and I was interested in obtaining financing.

"We can do that."

Finally, the words I'd been searching for. Building my credit, building my income, and building my contacts was about to finally pay off. I did not get my hopes up, though.

So I prayed. As a testament to God I thanked him for the sunrise that morning, and the sunset that night, and thanked Jesus for living the life we all should live and dying the death he did to save each and every one of us. I didn't pray for the deal to go through, but I was definitely quick to mention how this potential new relationship with the new bank could help me help my family get out of debt and stop struggling.

I gave the banker everything she asked for and then some. She accepted my several letters of recommendation with a smile and told me the bank would take them into consideration when trying to ascertain my credit worthiness, as none of the properties/mortgages in my portfolio would be on a credit report. She said she would know something in a couple of weeks.

The first week of the new year rolled by. I heard nothing. The second week, nothing. Almost to the end of January and almost 5 weeks after I had turned in the mountain of paperwork with proof of income, LLC documents, etc, she called to say she's still waiting.

Then another call yesterday afternoon. The package needed at least three board members to sign off before approving the loan that would refinance my debt and establish a new line of credit against 2 of my properties, with the potential to refinance more of them in the future.

Well, it received three signatures.

Water proof snap together works great, but also the thick loose lay vinyl $0.99/s.f. on sale, plus 14% off!

Troy, I want to elaborate on something now that I have some more time to read over what you guys had to say.

Seller might continue to live upstairs but has remarried recently, and may move in with significant other. If seller does continue to live in the upstairs, while placing property in a trust, will there be a rent liability to the seller at this point?

And as for collecting money, I'm trying to figure out if the seller can sell this once in a trust and collect money from that sale? I wasn't sure with how you worded your comment (or I may have worded the question/situation wrong) if you meant a check can be written to the trust, or out of without certain proof or documentation that the trust incurred an expense on behalf of the subject property? Thanks for the insight on how selling is just as easy when in a trust!

What would you suggest if you were in the seller's boat? I spoke with her this afternoon for a bit, and she's stated she doesn't want to rent out and let the trust collect money, she wants to cash out. But, she's unsure of her tax implications or capital gains taxes without being in a trust while maintaining it's her primary residence. @Bill Exeter

Is the previous paragraph something you have some insight on? Thanks all! I don't like asking for help but I really want to be able to give this seller everything I can as far as suggestions and insight.

@Troy Fisher

@Bill Exeter

Thanks guys so much for the insight! I have to get to an appointment, but I will come back to this thread and continue the discussion because the owner will probably be pursuing some of these options if not both.

@Rick H.

Thanks for the specifics on your comment! I've never heard of a 1031 (and I'm trying to figure out why!).

I have been pushing the seller financing strategy, but the seller is well into the prime age of 80s. Not really an option, but leaving it to the daughter is something that would make the seller happy and I think that's where we'll end up is a sale within a trust.

Having, reluctantly, not heard of the 1031, is it fair to ask how this works (if it's not using the funds of a sale within a trust to purchase a similar property)? You said relatively simple, so your continued insight on this is appreciated. I'd always like to be the hero!

Do we think it might not even be the best scenario to place this into a trust?

@Abel Vazquez

If I were looking for a PM, I'd always request references. The PM should have some sort of information sheet for you to look at as well. I would ask for addresses of several properties they manage and go check them out in person (make the long trip if necessary).

It's easy to get taken advantage of from states away (if that's your situation). Once you get some addresses of current properties they manage, double check the owners on the tax record, and see if you can get in touch with the owners directly and ask them how they like them.

If you find there are only 3 or 4 references, that's not good. A good PM should be able to hand over every owner they've managed for. If they are a young PM with only 3 or 4 large clients, that's something different to consider.

So have you not made your deposit yet @Aaron A. ? If you're using these funds for an investment, whether this one or another down the road if this doesn't work, you should probably get it in there.

Just be careful that you aren't rushing the deal, there's always something else out there, trust me.

And if you want a good reputation, go to the seller and let him know your offer will need the extended amount of time to close, BUT make sure the seller knows you are 100% prequalified for the loan.

So make your offer with that stipulation. Have you obtained a prequel letter yet?