All Forum Posts by: Jeffrey K.

If you are looking at REOs and dont have cash then you should be looking at fanny and freddie and HUD. These have a wait period for investors.

Not worth the time. They will not deal with you because it is listed. Make your offer through the listing agent and make it for the most you are willing to pay. Do not ask for any repairs. Also, it this place in good enough shape to get a loan? Most REOs that dont sell at retail are all cash deals because of condition. This is what drive the price down and the bar to enter higher.

It is never good to not be paying cash. What is the property worth? What is the property worth to you? You should use these numbers to come up with a purchase price. It does not matter what the bank has into it or what the city says it is worth etc... It is your house so buy something you can afford and that you like.

LLCs do not cost as much in Wisconsin and if you have equity in your property it is a good idea to keep each one in its own LLC. I have nothing to gain by telling you to do this (Will). This is how I have done it and seems logical. If LLCs are expensive then I would reevaluate. I got this advice from my mom, a lawyer who wrote, "LLCs and LLPs: A Wisconsin Handbook." My mom is not always right, but I think when it comes to the structure of my REI business, she is. BTW, she does not stand to make any money by you forming an LLC nor does she run an LLC mill ( I think that comment was coming next). I also think the book is for lawyers so don't ask me for a copy.

Maybe its because I do quit a bit of business, but I trust my lawyer will not screw me over billing a few hundred more bucks. You should not be doing business with someone you don't trust.

I am not sure it is you Turscheca. I think wholesaling is something very few people can do well if at all. It is really not for people starting out, but, rather people who are established and see a deal that they just don't want to do. This happens to me from time to time but I dont ask for money I just pass it on and hope they send me business in the future.

How long do you spend trying to do these wholesale deals? Have you thought about owning a property? This is often a good way to figure out what goes into a deal so that you can represent the deals you find in a more sophisticated way.

Good luck.

I was wrong. Now that I know that you only are going to use two rooms because you only have enough furniture to fill two and your "Edwardian" colection can fill the rest it starts to make more sense. That is a big place! I was thinking it was going to cost a lot to furnish.

I also did not know you had a degree in landscape and all of those rare plants to put in. You do have to budget for transport from Georgia to PA for the plants. I also would assume that many will not grow in that zone (not sure I dont have that type of degree). Maybe you can get some money by selling some of the plants before you leave.

It is also helpful that you have managed hotels and it is easy for you. I worked in the service industry before my REI and I hated it. With your skills, a project like this should not be hard compared to running a big hotel.

Who do you plan on making the meals for $7/day will heat and electric? I am not sure they want the number 5 meal from McDonalds at the castle! Once you acid wash it you could call it "White Castle!"

Are you going to put in cable and TVs for your guests? I would think that would cost 50k right there just in LCDs.

I would make a theme to attract guests. Hooters did this with their airline.

The budget will go a long way because you plan to do all of the work yourself. The strong construction background from you last flips will come in handy. Remember to wear a mask! That Irish dust from the 1800s is nasty.

Had you told people this from the start you would have that loan by now.

If it is worth over 1mm a buff and coat on the HW floors on the 4th floor and some window repairs are not going to matter.

Why dont you get a FHA with 3.5 down? I think they do castle loans still as long as they are not jumbo castle loans.

I think his influence might be going back negative! Also you could spend your 60k budget on just a kitchen or a bath or two on a house like that.

I think when you pressure test a house you take the angle stops off and cap all of the lines. When we test waste we cap everything. We just use water to test water pipe.