All Forum Posts by: Jon Spencer

Hi, 

I am working on a few deals in Columbus GA and I am in need of some professional working contractors to help with renovations.  I can use a GC, flooring, kitchen, bathroom landscaping contractors.  I am motivated to get to work and build up my company JSpence Investments with some hardworking people with integrity.

I actually do have the experience to handle this. Sometimes it's worth dealing with a headache if you will come out ahead in the end.  I always calculate my risks.  I don't need a realtor at this stage.  It is just up to me to decide if I just want to walk away and keep it moving or hold him to it to make him "pay" for not knowing what he's doing... I just wanted other opinions.  It isn't costing me anything and I do my due dilligence to see whether I want to deal with the tenant situation or not. I usually find a way to come out good in the end. Even if the tenant never pays and it takes 4 months to evict it's still a good deal in some cases.

I'm moving on unless he comes back correct. Because after closing I don't have to babysit him anymore.

@David Miller It does somewhat.  To me it seems like he got these houses for cheap and saw an opportunity.  But never sold a house before and is nervous or intimidated.  I've caught him in a few lies already. Like the tenants.  I found they just moved in a few weeks ago. I told him I wanted them out if there is no lease... I believe he created a lease and back dated it for last month so I couldn't make them leave...

Sometimes dealing with a headache gets you a good deal but I will walk away if this escalates further... I just still want it because its $1250 a month for a $45k investment.

@Mike M.  I do believe he is the real owner.  He and his brother have about 5-6 houses that I found by research they got for $4-8k each.  They say they have a "Construction company" but meeting him and seeing how he does business it looks like this is the first time he is doing business like this.  He doesn't know how things work.  To him a construction company seems to mean he got these houses and they paint the outside and inside and try to sell for the highest price he can...

As I've been working with him I see on the website he has been decreasing the sales price everyday in an attempt to get someone else to buy it.  But he already accepted my offer and signed the purchase agreement.  My lender is ready to order title and appraisal.

I am dealing with a "for sale by owner" situation that is getting frustrating...

Here's the Deal.  I found a house that I wanted to buy as a rental. Asking was $23k.  I found he had multiple homes for sale so we negotiated for me to buy 2 houses for $55k.  The other homes asking price was $40k.  When talking to the owner he wanted to close real fast... like me hand him the money, he hands me the title and we walk away.  I told him I don't work like that.  I would be crazy to do that.  So I kind of felt his personality and saw that he doesn't do business too often and doesn't know how selling a house works...  Every time I talk to him it's like I'm teaching him how to sell me his house.  I even had to talk to his lawyer to tell them how to write the purchase agreement...

Anyway, so since this wasn't going to be a 24hr sale I could tell he is trying his hardest to sell to someone else also and whomever comes up with the money first he will unload the houses.  By the way to sell the homes fast he says they are already rented out to tenants (I know this could be good or a nightmare!)

I went to go see the houses and found that one of the tenants keeps the house really messy and doesnt have furniture. Just a blow up matress and stuff everywhere.  The area was definitely C class but I see potential.

After seeing the houses I renegotiated the price to do both houses for $45k.  He quickly agrees because he had some other buyers come to buy the house and for some reason they didn't want it anymore.  I know it's probably because there were supposed to be renovations done in the house but you can tell no renovations were done really. I already saw the buyer bought the homes for $6k six months ago.  I expected at least $5-10k reno to be done but it looks like he just painted the exterior and interior.  And even though I would like to pick my own tenants they are paying $625 each.

Long story short... When I talk to him he whines about when can we close.  I told him I am going to do an inspection on both and check them out.  It took me a few days to get him to send the purchase contract and sign it.

Now that he and I have signed the purchase contract.... he stopped answering the phone... What can/should I do?...

Ok...

So if someone was starting over building up their portfolio and had the means to get their first property (hard money), what would be a good exit strategy to pull the money back out to do it again if:

1. Personal credit was bad

2. Business LLC was just started with no bus. credit

Mind you this is for a buy and hold so since it's not a flip they wouldn't get the cash back after the sale.

Would they be able to get a mortgage with no bus. credit and bad personal credit?

Ok I definitely understand @Ryan Blake and @James Wise. It's a better strategy to get the best rate and rate of return. 

I just thought it was better at the end of the day to have the investments in the LLC name. Thanks for your input.

Regular as in under you personal name?

Hi I want to know what are some of your strategies for refinancing out of a BRRRR. Can you use just your business credit to refinance without personal guarantee?

Great deal! Congrats!  I tried the auction a few weeks ago.  I heard many horror stories about the closing and dealing with the auction companies.  Won't let that stop me though... Your deal is a winner!