All Forum Posts by: Mel Park

Hello all..... I have a few TH's -  metro areas.  Use a property manager that I feel the relationship is good, everything is orderly - and while it comes at a cost, it's truly as passive as a non-paper investment can get.  They recently did some work on the garage. I'm putting the charges here - curious if folks here think it's a little high, or reasonable. 

Wayne Dalton conversion kit 1 Wayne Dalton conversion kit 1.00 $95.00 
Service Call Service Call 1.00 $69.00
Labor Labor 1.00 $30.00 
Wayne Dalton torque tube
double
Wayne Dalton torque tube double 1.00 $273.00 

Total is $467.00

Appreciate any thoughts - I don't have more specifics than this. I don't want to Monday morning Qback every expense - first off I don't have the knowledge and also, it's tough to tell someone "handle it" - -and then want to look over the shoulder for every move.  If I'm maying a bit more - fine. I just want to make sure it isn't blatant fleece-age.  

 Michael thanks for the post.  Are there wholesalers - who do suburbs of Atlanta? Yes I can Google it - -- but I'd like a way to verify someone being legit, with track record.  Also on waiving Due Diligence - - I'm not disagreeing just playing dumb (easy role for me to play....).....by waiving DD -  if I find serious water damage, or problems with 'bones' of the house - doesn't that mean - my profits are pretty much gone?  Thanks

Disclosure: I have ZERO to do with this listing. I live 30 minutes from it. It went under contract in 2 days. I've never ever rehabbed and flipped. But I was curious - just based on the listing, and the homework you can do vis a vis comps and the neighborhood...... what would be your back of napkin guess for rehab cost, and ARV?

https://www.zillow.com/homedet...

IF LINK doesn't work:  3701Kingston Way.   Bensalem, PA 19020.    Again I am not buying nor selling anything here. Just really curious to see what someone experienced would think.  

About me: 47, family, did well in my small-business life for 20+ years, up until about 2019...grrrrrr. Luckily have a decent nest egg, barring major depression scenarios, I think I'll be 'ok' with a a few lifestyle cutbacks and I haven't worked for 2 years now.       Rehab experience: NONE.  I currently live in suburban Philly. 

I own (2)TH's Metro Atlanta for 1.5 years.     I own (1) TH in Northern Virginia for 8 years.  Both under property management - the worst thing that's happened so far was (1) late payment, and I got $25 late fee so the diner breakfast  tasted good that day:)

Advisors: NoVA Prop Manager -same for 8 years, good relationship.   In Atlanta - happy with my broker and property manager - he is the SON of my Virginia guy....and thus far I'm pleased.   In Metro Atlanta - I've made about 7 offers in the last 5 months --  no dice. On 1 - I was actually $5,000 higher on my offer (240k house)....but the other guy waived any due diligence so lost that one.  My deal with Atlanta Broker is that he will oversee the whole rehab, he has the contractors and subs -- - and yes, he's done these before with his Dad.  In return - I use him as my agent on my atlanta properties, in addition - use him for Property Management.  I trust the relationship so far because: MANY times I send him a listing and he'll disqualify it with good explanation. It would be easy for him to say 'write it up' and collect his 3%....but when he rejects MOST of the listings I send - I feel he is also wants me to do well.  He's not a full time rehab realtor -- but he does do some.

I realize, this is not Cable TV where it's all easy and big money is made.   

Frankly -I'd LOVE to average 1 flip a year.   2 would be absolutely amazing  - - vis a vis my financial plan for hopefully 'making it' financially. The flips would be extra --  but a very welcomed plus.    A few thoughts and questions:

1.)Is it just plain the wrong time? Odds are values drop 6 months from now. Sellers seem to still want high prices. BUT I'm getting beat out so someone is paying the higher price....does that mean they are dumb? OR does that mean perhaps they are contractors, and have expertise and cost savings that I just don't have?

Is it prudent to just say "I'm waiting 6-7 months. Sadly, rates will be higher, prices lower, some jobs will be lost, and more homes might go to crap and be listed for sale as fixer uppers..."

2.)I chose ATL because I feel I have a trusted counselor there.  Also, I like homes under $250k.  If I'm gonna do cash deals....that's manageable.

3.)I am tempted to start in my own backyard - suburban Philly albeit units cost more. I'm wondering - yes, I have NO experience. But if I get the right software OR the right Realtor to give me honest comps....and I buy a home....I would do so fully aware I can't do the work myself. At that point....I wonder - why can't I see that the paint sucks, the hardwood floors need finishing, the bath and kitchen must be gutted, etc.....and get the appropriate subs to do it knowing full well one must stay on them and there will be fits and starts and late jobs, and change orders, etc.  Will I pay more? Yes. But even if I make a below average profit - I'd be a happy camper.    I

4.)If I decide to do one and go it alone - does it make sense to have a Real Estate Broker License - theoretically i'd save 2-3% on buy commission and 2-3% potentially on sale commission - --that assumes market is decent and I don't need a talented agent. If market sucks - well, then I'd need an experienced person

Time: I have plenty. Most of my days are spent following stocks, playing with retirement calculators, doing stuff with kids, and playing more poker at the casino than I care to admit.

I refuse to give up.  I feel that I know what I DON'T know.  I feel I have CASH to do deals - I think that is an asset.  I've never flipped a house - but in my 20 year history there was tons of buying and selling -- - and I knew all that time that I make my profit when I BUY the merchandise - not when I sell it and I think that lesson carries on into houses .

Geez, all I'm trying to do - is my first rehab.

Hoping some of you will chime in. 

Questions, comments, insults - all are welcome. 

Thanks everyone, keep it coming.  Yes.  I'm using the broker I use for my personal home, and cars.  For my home stuff - he's been 100% super accessible even after hours - - I wanted to give the business to him. The Markel proposal comes from him. 

Hello, I've got 3 rentals, 1 personal home - and of course, 2 cars.   These assets are spread out between 3 states.    I have $500k personal liability on the rentals and $1mm on personal house.

I'm looking at an umbrella for $3 million - - thus far I've been presented "Markel" .  I really don't know how good a company they are vis a vis paying claims, staying in business etc.  Cursory online search shows less than stellar reviews.

Anyone know a reputable company that can do an umbrella for properties that in in various states....that is a reputable insurer, or is Markel ok?  Thanks

In my previous life I owned decent sized companies and the CPA just did all my personal tax stuff - it was just part of the deal.  Anyhow  - now early retired - that perk is gone.  My scope:

*3 rental properties (with property manager)

*Rather decent sized stock portfolio - some long term stuff, but decent amount of shorter term trades too.

*Oh - and I'm the AntiChrist of paperwork and being organized - part of the reason I don't want to do it myself.

I've been Googling - but frankly I'm not sure what to look for.

Any tips on how to find a CPA well versed in these things - who is accessible and good to work with?

Any idea what they charge for the whole thing?

Thanks

I am curious about buying residential land.  Take a growing Metro - -be it Raleigh, Charlotte, Atlanta, etc.  Obviously, the suburbs around there have exploded and houses  (at least these days) are selling quick, and for tons of money.  Forecasts say population will increase in these Metros - and that housing supply is short.    I am wondering....what if one simply went an hour, even 2 hours down the major freeway.....and bought land.,..and waited.   It could be a $10,000 lot, could be $50,000.  I'm wondering how realistic it is to say "I'm buying these few plots......I'm fine sitting on them......and in 5-6 years I think a developer will be knocking on my door".  Any thoughts? Thanks

Hello all.

I have a rental townhome in suburban Atlanta - no mortgage, and 4 months ago I bought an insurance policy and paid for a full year upfront.     Now, I'm buying a 2nd townhome - also suburban Atlanta.   I know it's not a lot of money - but every little bit helps - - I was hoping that I'd get some sort of discount for having more than one unit.  Initially- the agent I bought the policy from says that thru  "American Modern" - the company I'm insured on the 1st Townhouse for -- - that there would be no discount for multiple units.       Does that sound right?    I know that having 2 units doesn't make me Jeff Bezos but I was hoping for something at least :)

I'm trying to refinance a rental property. Also want to get mortgage on my next rental property and I have conditional approval. My LLC - the underwriter wants "Articles of Organization" and proof that I'm authorized to sign. I looked on the state's website and my LLC comes up, with my name - but I have no clue how to find Articles of Organization.

Is this something I can just buy a template for, and fill in blanks?

OR, can I just put the property in my personal name, and buy an umbrella policy with a high dollar coverage amount?  Thanks for any ideas....