All Forum Posts by: Joanne Basecki

I too don't have the answer but would like to congratulate you on your courage.

Is your goal to buy and hold? What exactly are you hoping for?

There is one factor to think of as investment aside from money and that is time, obviously. Is your time available as well?

A good example, I feel, of an opportunity less known to RE "newbies" is transactional funding for wholesalers (back to back closing) where one could get away with minimal amount of own money, but end up investing time instead. End effect could be profitable in MANY ways. Just look up "transactional funding" on these boards.

Analysis of your specific example I will leave to the more experienced... I am sure you picked that particular example for a reason... Almost if you'd wanted to ask: "what's the point?"... Am I correct?

Originally posted by Scott Hubbard:

Second, you will be required to permit the demolition which is more expensive than adding. The sale of unpermitted additions in violation of local zoning should not be done under any circumstances.

Scott, are you saying that it is not legal to sell/buy unpermitted additions? Or possible only when the buyer will permit the demolition? Does it mean I could buy if the expense of taking off the addition works within my numbers and time frame? Is it possible the numbers might actually work in such case? Obviously the huge discount is likely...

I hardly ever shop but when I do it, it is on line. I wish I could do groceries this way...

Jason,

Thanks so much for the reply on this.

I fully understand your point and I understood it for a while. The fact is you made it even more clear! But...

1000 was only an example but even that much is not so easy available via work for some otherwise GREAT people. Only those who are in the situation themselves know. Foe example older teachers with disable children... but examples could go on and on... And, if and when such a person made a 5K investment it could be worth for that person a million!

AS FAR AS THE FIRST QUOTE:

I was talking here about the REHAB money, a case where Mike would purchas a good ARV deal "for next to nothing" but still needed REHAB money.

Thanks.

Hi Raul! I am from San Jose and love SF. Have family members who as well spent time as a no budget film makers! Welcome! Your RE plan seems so very sound. Keith observation is of course realistic but focus and passion can overcome everything. I will be among those cheering for you.

Originally posted by Chris Clothier:

Mike -

Money itself may indeed be a big part of accountability but so is a percent of life savings. What one dollar means to one person may be same as one thousand to another.

But even aside from money, how about the situations where the entire future and life itself or someone else's life seems or IS at stake? Many people likely deal FUTURE and LIFE aside from MONEY, particularly now days.

I know I may be wrong but I thought on that so often, the subject became very dear. This is why I follow threads like this one so closely. Wonder why I at least was not able to find the argument for this other type of "skin". Could it be that it is actually not valet?

Chris, a few days ago you said:

"Skin in the game is based on the deal. The closer you are to ARV the more risk for the lender.

Find a good deal to lower the risk."

This in itself is a positive statement, giving hope.

Now, would Mike purchased his property for "next to nothing" ending up with no holding costs, could THAT be considered a skin in the game as well, from a point of view of a lender? Would the rehab money come in even easier for a good ARV deal?

Theft via "overdraft" fees alone committed on countless of small accts throughout the country, assumed legal on some strange bases, makes the downfall of BofA an impossible dream. Yes, they need to be shut down.

Obviously, since no one throughout this thread mentioned exit strategies, those likely have no value to HML. Still, I cannot resist asking this:

If Mike had an end buyer with a pre-approval in hand (from a major bank) and a written intention to buy the property from Mike after the rehab is done, would such end buyer (holder) absolutely make no difference? Such end buyer could in fact be a family member of Mike's.... Would Mike still need to resort to a JV of some sort?

And, an experienced GC involved in the project aside from the exit buyer, still would not do?

I know, there are a few lenders, needles in a hay stock (one of those on this very thread) who lend based only on the value of property but to hope for one of those would be like hoping for a lottery win? Exit strategy and or experienced GC would not make a difference? Is that what most of you are saying?