All Forum Posts by: Ravi P.

first, there is much more information required to see if tou were taken advantage of. you can't just take the colleague's word for it. He probably is not aware of the full scope of work involved. But he may be right as well. you should have gotten multiple bids before you started the project. that would have addressed your concerns regarding overpaying.

@Eric Gutierrez I insulated my walls and ceilings in my home with Roxul safe and sound. it was a 1920's bungalow. Roxul can be found at HD or Lowe's. it is fire proof and helps with noise transfer. I also installed Roxul in a first floor condo flip I just finished. I did not add the resilient channels. Originally the ceiling was just 5/8 drywall but with the Roxul and 5/8 the ceiling was not sound proof, but did make a difference. The manufacturer's website site shows different methods that can be used and also has STC rating for the different methods. you can add resilient channel and also double up on the insulation I'd you have the space or double the drywall sheets. good luck

@Christopher Veljkovic did you buy this property since you thought it would be turnkey? more importantly did the Seller present this as a turnkey property? and Finally does the price reflect a turnkey property? If you bought this because you it is turnkey and your price reflect that scenario. would it be too late to renegotiate. Keep in mind. your Realtor will hate you for trying to make these changes so late in the deal. if you still want the property, and renogtiating is not an option, ask your Realtor to see if you can begin listing the property for rent to minimize vacancy. that way you can hit the floor running when you close.

Thanks guys market will determine what the house is worth. @Jeff dulula, @Chris mason, @Gabe Amadee. 

As for ARV

105k PP

16K Reno labor, materials, appliances

7K holding cost (HOA, Mort, RE taxes)

128K all in

I came up with 175K based on another property for sale 159k and made adjustments for improvements I made that they do not have.  

my question is do FHA appraisals more conservative than conventional mortgages? Here is my dilemma? I have a condo flip that we have listed last week and we have an offer. the issue that I am going to run into is that all the properties in ghe complex, that have sold in the last 2 years were all distressed. 3 foreclosures, and another 1 was an arms length transaction that was aunt selling to niece. Finally, my purchase which was a short sale and now listed for sale. all units sold between $105-123k. I did a complete cosmetic rehab. new bath and kitchen, paint, flooring and recessed lighting. I listed at $175k and there is another condo listed for $159k that only has new paint and appliances, the $159k condo started at $169 and had an offer for $163k, but the sale fell through since there HOA has a rental restriction. I received an offer for $160k and need to counter. it seems like it will be hard to appraise at $160k so for asking for anymore would be wishful thinking. but there is the possibility the property may appraise out. to make matters worse they will be financing with FHA type loan. I know I am trying to push the market but from your experiance, do FHA loans come in tighter than standard loans? Thanks for any feedback.

@Robert R. pm me. I have a 2 firms I use one of residential and another for commercial. The residential is a flat fee, rather than percentage of savings. If the don't succeed they will appeal for free next time around.

@Jay Thomas You can use anyone that is licensed and bonded, as long as they are willing to pay the village fees. It typically takes a week. The biggest problem with these contractors are they don't want to pay the fee for just one deal. Another issue I run into is that many of these guys claim they are licensed and bonded but the have a guy in the trade that is willing to let them use their license and insurance for a fee. This only adds to your cost as an investor. One last thing, depending on your scope of work and how strict the Village is, you may be able to pull the permit in your name, the owner but "help" your unlicensed guy do the work. I've seen to many people get burned being penny wise, I recommend doing this the right way

Originally posted by @Carol Bloom:

@Ravi P. how long does the letter of intent (LOI) usually take your commercial bank to put something together for you?

 @Carol bloom

They typically take a day or two.  The bank is a small bank and I have a running relationship with them. 

Ravi

@Carol Bloom I work with a Commercial Bank, they provide a letter of intent (LOI). In the LOI they stipulate that the funding is subject to underwriting. Once a property has been identified and underwritten they will provide a term sheet and then funding.

@Jeremiah Wise I have used Groot in the past. They typically have an online price on their website that they will honor, but only if you ask. Their weight limit was more than anyone else I could find and I also exceeded their holding period of of 2 weeks and they did not charge for the extra days.