All Forum Posts by: Nishi Lagoo

@Dominique B. Great job. Looks like a great deal.

@Ron Singh I did buy the property without a lawyer from the wholesaler. I met with the wholesaler and personally saw the property to make sure I wasn't making a decision blindly. The process went smooth, I had some help and guidance from my lender since this was my first purchase. I still own the property after 1.5 years and is rented out since Feb 2018. We finalized the deal in End of Oct 2017 but didn't get the possession until mid November. Rehab took almost 45 days and one month to list and rent the property and refinancing in March 2018.

Below are the stats on the property:

Purchase Price: 98K

Rehab: 20 K 

ARV: 180K

Rent: $1650

The biggest issue I faced was with the appliances (All upgraded by previous owner) in the house which were running at the time of renting the house started breaking down one by one.  I had to replace Microwave, Oven and refrigerator (all in built in cabinetry) within a year. Other major expenses to the property were the fence (shared with the neighbor who was unresponsive and unwilling to share the cost to replace it) and trimming large trees in the front yard and back yard. 

Hope this information helps and wish you luck with your investing.

Looking forward to attend this meetup and connect with seasoned and new investors (i am a newbie too).

Closing on a flood property myself by end of the month. Great opportunity to get more insights out of this.

 Great Advice. I did my due diligence on rehab price and comps. I have few GC contacts that helped me with these numbers. And I am using all worst case scenario numbers here. I really liked the idea of vetting the wholesaler. I googled his company and found few reviews but that's about it.

Thanks for the help.

 Thanks for the great advice, that is exactly what I was looking. I will do some research on TREC contracts and assignment form before moving forward. I understand there is some risk with going forward with wholesale deal and this being my first investment, I am excessively cautious. Thanks for offering additional help via DM. I would definitely reach out if I have more questions.

 Number 1:  I am not a guy. I am a woman, yes you read it right. Thanks for assuming.

Number 2: if I had already made up my mind I would not have posted this question. I am open to opposing opinions/suggestion with sound reasoning than someone just telling me not to do period.

@Richard C. and @Brian Pulaski,

Thanks for the insights. I guess I need to do some homework before jumping into buying from wholesalers. 

 Thanks for your response. Can you educate me a little on if I decide to go with the buying, what should I look into seller's contract that might work against me. Can I use my realtor as Buyer's agent?

@Brian Pulaski, The property was already gutted and the insulation was removed. Some of the cabinetry was salvaged and the upper cabinetry are in good condition. This property was remodeled recently and the pictures show it. So, other than flooring, cabinetry and drywall and some touch up work there is nothing that needs fixing. HVAC is also working, but I will know it for sure only when I see the property.

I have been in talks with 2 hard money lenders and I am qualified for the property in this range.

I will loose that $3000 only if I back out. That being said, unless there is huge structure /Mechanical issue or huge rehab required (more that 60K), there won't be reason for me to back out.

I really appreciate your help. 

@Brian Pulaski, This will be my first investment property. I have seen pictures of the house but since this property is owner occupied I haven't had a chance to look at it yet. I have few contacts in residential GC, and I have shown them the pictures to which they estimated same 20-30K range.

I am not worried about the flooded property, because it only flooded for the first time during Harvey (6-8"). and the Owner is still living there. Which makes me think it is still safe and habitable. I am more worried about buying without any legal protection. To answer the deposit question, yes I will loose the deposit money $3000 if I back out.