All Forum Posts by: Randy E.

This thread is much more entertaining than it has any right to be.

Thanks, everyone!

@Ayodeji Kuponiyi, if I took an application fee and did not return it, I would feel obligated to inform the applicant why they were denied. 

 LOL back at you.  I just spent an hour today cleaning out the crawlspace of a house that had three trash bags of stuff under it.  I had planned to have someone else do it, but as it turned out, I was there today and no one else was, so I just went under and did it.  Fortunately, there was no moisture (even though we've had rain for two days) but I got dirty enough.  First thing I did when I got back home was take a shower.  Next thing will be to have a beer.

EDITED:  OOPS, DIDN'T REALIZE THIS WAS AN OLD POST.

@Stanley E., I understand your trepidation.  I was confronted with the same issue my first time out.  When you say, "no HVAC", I'm assuming you mean it has no central forced air heating or cooling.  I'm assuming it is heated with baseboard heat or kerosene heaters, and that it is cooled with window ACs.  These are not insurmountable problems.

Of course, cost is the issue here.  For a house under 1000 square feet, a new furnace, including installation, might run you between $2000-$4500.  The range is for whether or not the house already has duct work, model choice, and regional price fluctuation.  If you want to add AC to the system, it will cost more.  I've heard slightly higher prices mentioned, but not many that come in under $2000.  

Don't make the mistake of going with a national retailer who offers the option to pay by the month.  I got an estimate a few years ago for $10,000-$15000, and that was with all the duct work already in place.  I couldn't get the sales rep out the door quick enough.

As long as you incorporate the cost of the HVAC into your analysis of the deal, it shouldn't be much of a hindrance.  I've had two installed in different rental properties.  It took about a week from first visit, to ordering the unit, to installation.  Sometimes it might take a few days more because of waiting for permit inspection, but that shouldn't be a problem.

Honestly, I'm happy to find a property with a dead/damaged/missing furnace.  I can use that "problem" as a negotiating point and get the property for a lesser price.  Then, after the new unit is installed, I know the house has a brand new energy-efficient furnace that is going to last for at least the next 20-30 years.  That's better than waiting for an old furnace to die in the middle of winter when a tenant is demanding the heat get fixed immediately.  

Good luck!

 Ana,

Just to clarify.  My suggestion was not to cancel your deal with the Owner in order for you to then sign a new deal with the Owner.  That would be pouring gasoline on a fire.  My suggestion is to cancel your contract with the Owner so that the Owner might have a better chance at actually selling her property.

This may be a great learning moment for you, but for the Owner it might be a big problem moment.  She wants to sell her house.  For nearly a month, she has been unable to sell her house because of you.

I'm not criticizing you.  I just want to put that out there in case you haven't considered it yet.  Sometimes, you have to let go so that someone else might end up in a better situation.

Good luck to you.

@Andy Ballester, I don't care how much "trouble" the wholesaler went through pursuing the deal with you.  The bottom line is he couldn't produce the results you wanted when you wanted them.  If he could have moved faster, the deal would already be done.  If you choose not to purchase the property he represents in order to purchase a duplex, that is 100% your right.  Not just your right, but it's your obligation to yourself (and your family if you have one) to make the best decision for your future. 

If you have concluded the duplex is better for you, BY ALL MEANS, get the friggin' duplex.

Good luck!

As someone who has never been a wholesaler, an idea came to mind that may or may not be feasible.

You, Buyer #1 signed a contract to buy a property from Owner.  You then signed a contract that gave your right to buy the property to Buyer #2.  You now want to remove Buyer #2 from the equation, which seems reasonable because he is not moving forward on the deal and is preventing the Owner from selling her property in a timely fashion.

Is it possible/legal for you to mutually agree with the Owner to terminate your contract to buy her property, which would then nullify Buyer #2's contract with you?  

That would help the Owner sell the property quicker (possibly to your other buyer.)  It would also keep you in good standing with the Owner, who might be so impressed with your sacrifice that she recommends you to other owners in the future.

Just a thought.

 I wouldn't get my license unless I planned on being an agent.  However, I have taken the class to get my RE license and even took and passed the state exam.  I didn't get my license because I didn't want to be an agent.  But what I learned in the class has proven invaluable over the years as a landlord and investor.  I recommend taking the class as a great way to begin learning about RE laws and regulations.

I think those are two rules that all homeowners should use when dealing with any prospective buyer and/or wholesaler. Anyone who wants to tie up my property better have POF and needs to pay a deposit. Otherwise, don't bother.

 Markup is frustrating.  But driving around, picking up parts, driving back to your property, is no fun either.  Even more frustrating is if you get the wrong part because you are not the expert, then YOU have to go back out to return the wrong part and buy the right part.  

After doing that a couple of times, paying parts markup doesn't frustrate me as much as it once did.