All Forum Posts by: Adrian Pillow

Being a contractor myself let me weigh in.

Look for signs in the neighborhood and evaluate the work they are doing. That way you have someone local and might have an interest in the neighborhood.

Then again a lot of contractors never advertise and are word of mouth, like me. Heck my truck is not even logoed!

You have to find a contractor that you get along with and can see as a friend. If they come across as a dummy or a jerk you probably do not want to deal with them as the heaqdache factor is high... Same goes for contractors interviewing clients.

Also ask yourself what kind of quality are you aiming for? Perfect, average, or cheap. Most likely you want an average quality job as this will be a good balance between investment and making a profit. Cheap is cheap, just run away form it... Sure it is a rental, but you want it nice as well.

The BIG issue is finding someone who is licensed, insured, and PULLS PERMITS! A handyman generally will not be able to give you all three items listed. Since you are busy you want a full service solution from your contractor. Trust me, pulling permits is a total drag, inspectors can be a drag, and also you are putting all the risk on the contractor to get the job done right.

That being said, watch for lazy contractors up north... A lot of union mentality for some reason. Find a skinny contractor who does not live off of Dunkin Donuts! You know what I mean.

PS Please if you see Barney Frank up there in your free time, kick his *** for me. Thks!

http://www.december212012.com/

First thing I found quick, but it is basically derived from the Mayan calendar. With a lot of other supporting information.

Apparently there is mention of the same thing in Revelations, but I have not bothered to research that angle.

... If you are into doomsday scenarios this is the most legit one I have seen.

x2 Joshua's summary of the situation.

A lot of the problem is the "mark to market" accounting method that is currently devaluing long term assets.

In our area the illegals or low income labor workers just abandoned the properties. Literally just left the house. Of course then it gets foreclosed on and up for sale later.

This has not been just immigrant labor it has been low wage earners of all types that took out risky loans.

In a few cases the houses were stripped out on the inside and the parts sold off. I am not sure as revenge to the bank or just getting some $. In these cases though it has been middle class white peoples houses! Like 400-500K houses, not street corner crack houses.

FWIW I own a remodeling company and still workers are greedy for top dollar. So times are not that tough yet.

More to come...

But just to clarify it is a very nice home for 1954. Not trashed at all. Well maintained and kept up.

BUT not nice enough to draw the crowd for this zip code. This is a Ritz-Carlton type of buyer, not DIY buyers.

... In a normal location this would be a regualr Joes kind of house.

I need to work to numbers and see what happens. I can easily get a line of commercial credit for the rehab and a personal mortgage loan on the property itself if need be. Again I need to do more homework to let you all know the specifics. I am kind of wary of hard money, as I can use my credit to save a few bucks on interest in theory.

I plan to flip on this, but rent in this area would be 3-3.5K per month.

MikeOH... Your book should be on its way from Amazon to keep me more learned :) LOL

Thanks,

Oops, I meant to say Rent To Own.

I have Lease on the brain on another deal I am trying to put together.

Thanks!

Okay, vacant house listed for sale. Vintage untouched 1954 where the original owners died and the kids are trying to sell the property through a realtor. Owner financing a possibility.

... The realtor is strong and knows the market. Been in the local area for 45 years.

Essentially he priced it as a "lot" and get the house for free since it needs a total remodel if not a teardown.

It is a HOT area even with the slow market elsewhere. Great great location.

Priced at 480K :shock:

Property still needs 60K for repairs. Luxury small house type of deal for a quick sale. Cheap will not fly in this zip code.

I figure only investors will touch this place. But I think 480 is high. Would it be too balsy to go 350 outright, or use the leverage of owner financing to lease option it for a 6-12 month time span?

480K for a first time deal is a bit scary... Then again the payback is potentially there for a flip.

Any insights are very much appreciated!

>knocking down walls is a blast!<

Especially if it is load baring!

Some floor plans are not what they seem until the drywall comes off... Especially the 70's houses.

"House Porn" that is classic!!!

Just checking to see how smooth the transaction was and thier timeliness.

Also how "negotiable" they might be :)

I have a property near me that I have set up for a Lease To Own, but I need the numbers for the deal to work out on the purchase.

Thanks!

I LOVE this post! You are preaching the truth.

My excuse at the moment is Fear and Ignorance. Similar to the FUD factor.

Fear of making a bad deal because of ignorance of what I NEED to know to make an educated decision(s).

I am quickly fixing the ignorance part with lots of reading of RE books and with the excellent info and helpers on Bigger Pockets.

Soon oh very soon deals will be made :) Actually I am in the process of building my "team" for RE deals. Also I am hoping to finance a little bit differently than hard money lenders, but I will keep it to myself until it comes to fruition. If it works I will share how I did it.

Thanks for the excellent post.