All Forum Posts by: Ramzi Alldredge

@Linda Weygant That is a great idea! I have an LLC and I was thinking that doing the sales through the LLC would give it some history when it comes to going to banks and such, but i like your idea much better. The LLC can still get the proceeds and show some business.

When you say:

Note: Make sure you are not acting as an unlicensed General Contractor if you manage this. I don't think you are, particularly if you get a Power of Attorney from her for this project. But check into this to be sure.

Can you elaborate a little? I will be doing most of the work myself.  My wife has full power of attorney for my mother in law.  Are you cautioning just because of the ability to pull permits as the owner?

@Joe Santoro heeeelllll no! :-P

@Daniel Mohnkern It's weird, I even got your "mention" for the first post, even though I didn't see it.

@Krystal Grubbs Thanks for the info.  I did include the repair figures in my calculations. You've hit on my dilemma, I don't want to low ball her, but I still want to make some money. I'll definitely look into Olde Town Title, they are only about 25 minutes from me.

@Daniel Mohnkern I wouldn't be using a realtor when I purchase the home from my mother in law.  I was using a realtor to try and find my first deal, before this opportunity presented itself, and that's where she came from.  

Hey BP'ers,

I am posting to try and get some advice about a situation that has just come up.I’ve been actively looking around for what would be my first real estate deal.

My mother-in-law recently had a fall, and has decided that her townhouse is too much to care for on her own, and she would like to downsize.

The townhouse she is currently living in, is your classic little old lady house. She bought the home in 1991, and if you walked inside now, you would instantly be teleported to 1991. Nothing in the home has been upgraded but it has been maintained. For example, it is the same carpet as 1991. You can imagine what 24 year old carpet looks like.

My wife, trying to be helpful, suggested that I buy the house from my mother in law, in order to fix and flip it.

My mother in law realizes that I want to make a profit, but at the same time I don’t want to screw her out of her hard earned equity.My contractor and I have gone through the house, checking all the mechanicals, roof, foundation, etc., and it is in great shape, it just needs a lot of cosmetic work.Further, the contractor I used is a bit on the expensive side, so I do have a little buffer there.

My problem is that I’m not sure what to offer her exactly, or even if I should take this on.Thanks for any thoughts or suggestions.

Rough Numbers (assuming 6 months of holding costs):

Purchase Price - $290,000

Closing costs - $10,150

Property Taxes - $1,700

Appraisal - $400

Total Acquisition: $302,050

Cost of rehab - $29,000

HOA - $456

Utilities - $2100

Total Funds Required: $333,606

ARV - $389,000

Cost of the sale - $38,900 (This seems a bit high to me, I got this from my realtor.I believe she is factoring in closing and 6% commission)

Interest on Loan - $3,700

Net Sale - $346,400

Estimated Profit: 13,794

Thanks for the warm welcome all.

@Ned Carey - Yup the Montgomery County auction, and your absolutely right.  I had researched the the level of over bids from the previous year, and thought my bids were in line, but for whatever reason, the year I bid others seemed to be much higher than most other years.

Hi all,

I have been listening to the podcast for about a month and have been lurking for about 2-3 weeks now and finally wanted to take a minute for introductions.

I have been interested in real estate most of my adult life.  I was always the guy to pick up those homes and land magazines in any new place I went.  After purchasing my first home (primary residence) in 2008 and watching the value just plummet, I was a little bit scared away from real estate. 

The itch never went away and in 2013, after saving some money, I tried my hand at tax lien investing.  After hours of research, driving to several on my list, bidding on the homes, and being super excited... I didn't win anything in the county auction.  

My current goal is buy fix and flip properties.  I intend to jump in with both feet and buy a rehab in April or May of this year ('15)

I look forward to connecting with the Bigger Pockets community.