All Forum Posts by: Joe Horan

Hi Marcus. 

This one sounds a little tricky. Normally, I'd just include flood insurance as a line item when doing the numbers. In this case, CAPEX, maintenance, insurance, loan payment, management, etc... and then flood insurance. If it still works at those numbers and cashflows it might be a deal. But given it has flooded, it might be hard to get rid of. That said, I've bought properties and sold to investors that are in a flood plain but they were in pretty popular rental areas.

Congrats on your first campaign! 

Talk to Call Porter. It's owned by an active member of BiggerPockets. Not affiliated with them, just a happy client. 

Call Porter. Go with them and never look back. 

I use Monument Title for almost all of my closings in Indianapolis. They're quick, knowledgeable and professional. 

Down to Earth Lawn and Landscape. They just did some work on a flip I'm doing. They are affordable, reliable and prompt. I work with Sam who I believe is the owner. PM me if you'd like contact info. 

@David Smiley Definitely agree. The plan is to treat and fix. I had a typo in my original post. It was suppose to say NOT compromised. In your opinion, is an appropriate fix sistering the joists or would you replace all together? 

Hi everyone. 

I've got a house in Indianapolis that I'm currently under contract for that I was planning on flipping. The details are below: 

Conservative ARV - $125,000

Rehab Costs - $60,000 with GC

Purchase price - $16,500

On paper, this looks like a deal but the inspection returned evidence of wood destroying insects with some of the joists in the crawlspace. The joints are structurally compromised but it would pop on an inspection with a buyer. 

My question here is how much more risky do termites make the deal? How difficult would it be to sell once the flip is complete? Should I renegotiate to give me more wiggle room? 

Hi @Ross Denman Hope you're doing well. Would you mind sending your inspector's info to me as well? Looking for 'Investor due diligence' type of inspector. 

I'll hop in here. To answer your first question, unless the seller needs to sell within hours/days, I usually let them know that we'll close on or before a date, assuming title is clear. It's usually 21-30 days after the contract is signed. If we can close earlier, great. If not, it gives me 30 days to find a buyer and deal with any title issues before the contract expires. 

The second question is usually a hot button issue. Some will say to have an exit clause such as an inspection contingency or 'partner approval'. I hold the opinion that you shouldn't make an offer unless you can close on the property yourself. I hate the idea of tying up someone's property with no intention of closing. It's bad for your business and it's bad for your reputation. 

Do a quick search in the forums as well. The topic has been discussed a bunch and those threads should help you navigate those 'what-ifs' a bit more. 

Good luck. 

I do put it on my marketing piece but only to cover me from the local real estate commission. They’ve indicated in the past that if I’m marketing at all, I’m required to put something on their stating my license status and my managing brokerage. 

That said, I generally don’t bring it up during my initial appointment at all.