All Forum Posts by: Jean-Thierry Aleman

Thank you @Bob Okenwa.  You are correct and I know this.  Sometimes we just need to hear it again.  

Thank you @Bill B..  I will definitely be putting in an inspection period.

@Corby Goade, Thank you.  that is kind of what I was thinking as well.

@Russell Brazil, Thank you. I did not know that Fannie got involved. This will be my first REO and we are using hard money so it didn't even occur to me that there could be those kind of imposed rules. I hope your right. This will give me exactly what I need.

I am currently going after an REO. It is a full gut rehab. Everything needs to be ripped out and redone except plumbing. I had my contractor walk the property with me already but (there's always a but) this house has a pool. He does not know anything about pools. The pool looks more like it's own ecosystem..... Frogs, plants, primordial ooze/slime. I know I need to have it inspected so I know what I'm getting into in case of leaks or other catastrophic issues.

My fear is others will not have inspection period just to get the deal. They already know everything needs rehab so why bother attitude.

1) How many days inspection period should I put into my offer to still be competitive?

I am currently going after an REO. It is a full gut rehab. Everything needs to be ripped out and redone except plumbing. I had my contractor walk the property with me already but (there's always a but) this house has a pool. He does not know anything about pools. The pool looks more like it's own ecosystem..... Frogs, plants, primordial ooze/slime. I know I need to have it inspected so I know what I'm getting into in case of leaks or other catastrophic issues.

My fear is others will not have inspection period just to get the deal.  They already know everything needs rehab so why bother attitude. 

 1) How many days inspection period should I put into my offer to still be competitive?

@Chris Seveney

Thank you for your response.  We are using a hard money lender. I think it is worth the asking price but my main source of fear, which I intend to mitigate by going back with my contractor, is condition of the trusses. I know there are leaks as there is a tarp covering the entire roof, there are plenty of stains on the ceilings, and multiple places where the ceiling is missing altogether.  The level of rot on the siding is the other thing that makes me think twice about the trusses. Thankfully the house is concrete block.  I have done rehabs but never had to mess with structural integrity of a roof. 

Thanks again for your comments.
 

Hey BP family,

I am currently going after a bank owned property with significant neglect and damage. It has an old ugly pool.  The roof needs replacement, The wood siding outside the house is destroyed. The list goes on and on..... 

Its your typical FULL GUT rehab. They are asking $285k. ARV is about $500k. Needs approximately $110k in rehab. We are putting an offer in 30k below asking.

There is plenty of meat on the bone from my perspective. I have never bought an REO before. Thoughts? What should I know/avoid? Specifically in relation to this being bank owned. Should I even bother trying to go below asking and risk losing the deal altogether?

Thank you

--JT

Thank you Melanie.

That is a great looking letter and I appreciate your thoughts on consulting a legal expert.

--JT

My neighbor has had 2 trees fall on my house in 2 months. He says it's my problem and won't even help with my deductible for what is now 2 separate insurance claims.  Legally he is correct.  In the state of Florida, anything that comes over my fence line is my responsibility.  My insurance agent instructed me to write a certified letter to him to have any trees I am concerned with cut and or removed by a licensed arborist.  This will then put the responsibility on him legally should any further instances occur.  Does anybody here have experience with similar situations?  I want to craft the best letter possible to cover my A$$.

Thanks in advance!

Thank you everyone for your input.  Going with the Stainless Steel option.  I was already leaning that way but after reading what you had to say, I think SS is the way to go.  Might not make much difference in rent amount but might decrease vacancy as it will likely rent faster thus equating into $$. I will look into the baby oil recommendation.   I bought new appliances but discounted for "scratches and dents". They are all on the backside of the units and not even visible.  I just got back from the appliance store and inspected them myself so I ended up saving a few hundred dollars there.

Thanks again.  Really enjoyed reading everyones input.

In the middle of a rehab (full gut)  Going to Brrrrrrrrrrrrrrr it.   Wondering if I should put black vs stainless steel kitchen appliances?  Main reason for question is do you think steel will get me higher rents?  The cost difference is probably only a few hundred dollars but my budget is already approaching the upper limits.  Not sure if $ put in now will really make a difference in rents.   Thoughts???  Any and all feedback welcome.