All Forum Posts by: Joe S.

Lots of places but the cap/ex will kill you if you aren't self managing. Don't fall for the trap you are much better off using the $50k as a downpayment.

I got SFHs for $50k, that would cashflow very nice. Blue collar, not a war zone. Professional management.

@Ben Clark

If youd like you can report them to the board and they’ll start an investigation and he’d have to show proof that he received an offer.

Imo you should, agents that lie to get an advantage for their seller is against the law and the fact he got an offer the same day when it’s been up for almost a year is too much of a confidence. I’d bet he’s lying and has done this before to give his seller an edge.

Really, the same day or so when it’s been up for that many days??? Jeez

I agree with your assessment to an extent. However, you have overlooked a major issue.

After the facts were presented and it became clear to Lenza that the public wasn't buying his allegation that I attempted to scam him he made his apology. 

Then............

Shortly after the apology he began firing off new unfounded allegations that I was trying to scam the seller who hired me. This is a pattern of slanderous behavior, not an improper usage of one word.

I think this thread is both instructive and informative so I would not be in favor of removing it. I do sincerely apologize to James for using the word "scam" in the title.

The instructive part is on two topics: (1) How are historical financials viewed in the market? and (2) Is 7809 Franklin a hot deal?

1) How are historical financials viewed? Should buyers want them and should sellers be expected to provide them?

• Universally agreed that you should regard any seller provided information with several grains of salt
• Also universally agreed that historical financials are a must in a "commercial" context
• There is disagreement on if "residential" sellers should be expected to produce trailing numbers. The debate can be summarized as: For smaller properties trailing financials have many reasons to be wonky, but many believe it is a good signal of transparency and (as @Ben Leybovich points out) this higher variance is exactly why due diligence on the leases can be more important for smaller properties.
• Line between "commercial" and "residential" seems to be driven mainly by number of units (i.e. is it eligible for FHA loan), even though many commercial banks will underwrite loans on residential properties with fewer than 5 units (especially at larger loan sizes).

Is 7809-7815 Franklin a hot deal?

• Using standard assumptions a property a Cleveland property purchased for $500k grossing less than $60k/yr in rents is is going to net less than $30k/yr. This gives a best case Cap Rate of 6%, maybe 6.5% with value of tax abatement. Quite low for the Cleveland market. If you watch the video, believe everything James says, and are very concerned about the panty thievery he discusses at length, then this still might be the property for you. 

Seeking input for a frustrating situation with a greedy, and what seems to be, an unethical concrete/brick mason contractor. I'm rehabbing a brick ranch home in North Denver area.  At first, it appeared it needed extensive cracked brick repair, due to settling of this 65 year old house.  Cracks on all sides of the house.  He had me believe it would take days to repair and quoted me $8,000. Yikes.  I've never done brick repair. 

Well, it took three of his guys one full day to do the work.   They only used half the bricks. Total cost for labor and materials is probably $3500 at most.   I've asked him if he would consider lowering what he is charging me.  He won't.  I've already agreed to it of course, by email.  And I am partly at fault here because I did not get other bids, as  I've used this contractor before and he does good work.  I work a demanding full time job too, so it's hard to do all the necessary things on a project, from start to finish.

I am so mad at his greed and how he was misleading. I'm mad at myself for not doing enough due diligence.  Sound familiar?  Also, he had an arrogant "my way or the highway" attitude, would not empathize.  Told me he had many more jobs to do, which he does and how he "squeezed me in" to get the job done.  The worst part of the house is now fixed and they did a good job.  We are just finishing up the inside for new paint and flooring.  

Last night the had the audacity to email me the invoice -- not even a formal invoice, just an email listing what was done and the $8000 charge that is due.  And he asks me "when can I stop by the house tomorrow to pick up a check?"   Aargh!!! He also quoted me $4500 to pour concrete for a new drive way.  I told him to disregard that and if he gouges me for $8,000 that I would NEVER use him again.  He made a sale and a profit here, but he lost a long term customer.

Any other input you have on how you could negotiate with him?  If I don't pay all of it, he could slap a lean and then I can't refinance to a conventional.   So frustrating.  Help!