All Forum Posts by: Jonathan Wilks

Jason

In regards to your first question. I always get 3 bids and use them as a general guideline. I also ask for a portfolio of previous work. I'm okay with the contractors willing to undercut each other. it seems to be how they keep each other as a industry honest with each other. They do this because they believe that after you use them. they will possibly receive additional work. 

When all is said and done i personally am going to select the individual. I believe will do a great job, and whose actual will be actual. I personally hate when contractors underbid themselves and begin looking for other work to and don't finish well. It is is worth more to me to pay more and have a contractor that will complete what they said they would. 

As far as the second i personally don't care when they bad mouth each other. I understand it though. they are doing whatever they can to make themselves look better. I personally don't usually like that behavior, and if i think the individuals work is good. ill confront them about that behavior. Ill just say on my jobs that behavior isn't necessary. At the end of the day you have the control in that part of the relationship. 

I hope that helps   

In regards to your first question atleast in California It use to be able to be a check, however a copy is made for the file. this is no longer the case. We now want a proof of funds from the bank, and a electronic wire to the escrow company is now wanted. A new LLC in totality would be needed once you sold the first one. I would recommend simply using apart of the address as part of the LLC to make it easier. Your final question i can't answer hopefully someone else can help you on that one.

I would simply wait until you get MLS Access or you a realtor. However in regards to the real estate sites you have mentioned above. Realtor. com is attached to the MLS in California where i live, so the prices are usually current. Zillow has pretty good rent value per property.

You need to know the rent roll/ cashflow, length of current leases. If the properties also have cam or NNN and what the current owner pays such as taxes and property management. When you look at commercial property everything is based on cashflow.

I would also want to know the basics of property when built, parking lots needing resurfacing, Why the owner has put them for sale.  I would look at any other opportunity i can force appreciate. I also would want to know what the new tax cost will be. 

whoever loans you the money will want to know how you will be able to pay the loan. 

you are going to need to research the numbers on having a single mortgage on one property is enough with rental income to cover that loan.  If that is not possible and you use  a cross collateral option. I wouldn't raise the ltv on those 2 properties above 50% and i would want the two rentals beable to cover the mortgage, insurance, taxes, and cashflow. 

Personally for me it is based on my familiarity with the area, and if i'm willing to go to the location in the middle of the night.  So i generally stay in a 20 mile radius of where i live. 

It is similar to a foreclosure / short sale.  They are trying to get the cash they lend on. Usually if the bank has a savvy real estate agent they usually already have placed it at a price to move.

First and foremost any time you form a partnership you need to be able to trust the individual. Second with the use of contracts, operating agreements, and a creation of a entity it could possibly be the method to move forward.  I personally would keep the activities you have already accomplished completely separate.  The partnership would be for any new purchases and they would be partnering in a business, that purchases property. I would in the operating agreement completely layout out exact roles and expectations. Build into the operating agreement exit plans and how difficult situations will be addressed. 

I hope that helps and good luck!

Electrical, plumbing, and HVAC systems may need to be upgraded if the property has never been remodeled. asbestos could be a problem in the house around that era, once again if it hasn't been remodeled.  In addition some of the paint could possibly have lead in it.  If it is raised foundation make sure the house has no foundation issues. 

One method would be take a equity line of credit on a property or refinance a property. 

another would be to get a commercial loan on the properties owned. 

Hard money.