All Forum Posts by: Edward Briley

@Ryan Thompson This is the very reason I decided to table the property.  How can I, or anyone be assured that the tenants are responsible?  I may go into a situation that the tenants have failed to pay their rents for months, and how long will it take me to evict them, and at what cost?  As far is I know, that they may have a long term agreement with the owner of the property, or a lease they paid before ever occupying the property years ago.  It is impossible for me to make an offer on the property, with very limited information.  This even makes it more difficult, seeing how I cannot contact the owner of the property and buying a reassigned property.  All I have been given by the owner of the contract is a piece of paper showing what is suppose to be the rents paid by the tenants for the last six months, and a viewing of the property.   Every time I mention that I need something for a lender, all they will tell me is that they want a cash buyer and will not even accept  a contract unless the offer is all in cash, and they unable to provide anything more, with or without a contract.   They have even told me that  I may not be able to obtain title insurance on the property because the contract is a reassignment.   It appears to me that I would be buying someones else's problem.  What really bothers me is seeing they have to close on the property, and the property is renting for what they tell me, why are they not keeping it? 

I have a contact that has a contract (reassigned) for part of a shopping center that they are holding and trying to sell for all cash.  I have got the cash to put down at least 25% of the purchase price.  The selling price is $170,000.  I may be able to get the property for a little less if I have proof of financing.  At present, with what I have been shown, is a rent roll that has no names and just a list of the addresses of the proprietors that add up to $2,850 a month.  I tried to get a proper rent roll, but seeing how the contract is reassigned it is impossible to get.  The property has an empty residential home that is on to the same property, that is not rented, and that should rent for at least $900 a month, also.  What is odd about the property is that the city has it accessed at only $192,000, however the plat shows the entire property they are trying to sell.   My home is accessed for more than that.  Any thinking person can see that the rent they are showing is more than reasonable.  Banks will not even look at the property, or at me, because the property does not have a proper rent-roll I can show. I have really basically given up on it, because things that look to good to be true, normally are not.   Anyone have any idea on how I can get this property financed?  

@CHRIS MITCHELL Craigslist is not out of the question either, especially if you are using older hardwood flooring or need ceramic tile.  Also, just if you plan on using a Realtor to sell the property, let them know the reason for the 'For Sale by Owner Sign" is out, is because you do not want to list it until it is complete.  However, if you do get a bite let them know you will turn the deal over to them, if you desire to go that route.   A good Realtor will bring perspective clients to you, even though they cannot sell the property until it is completed.  They can get it under contract and sell it the day it is completed, however.  Also, make sure you invite the Realtor over while it is being flipped, so they will know that you are doing quality work.  In the past, and I am sure even now, that many are putting "Lipstick on Pigs".  That gives everyone that flips homes a bad name. 

@CHRIS MITCHELL  Some more advice you may not want.  A good idea is that the day you start rehab on the property is to put a "For Sale By Owner Sign" in front of the property.   You may be lucky enough to find a buyer, before you hardly get started with it, that may buy it providing you do it the way they desire.  I have known this to happen with two others I know.  I have never been that lucky, but you may be.

@Corey Beckwith Is this the reason that my garage is stacked up with Kitchen Cabinets at present?

@Chris

First of all I do my best to pay the lowest interest possible.  No, I would never buy a home for that kind of interest, and I would never buy a house that needed work, that I could not complete myself.  The last 3B/2B home I flipped cost me less than $60,000 to flip however, that home had 2B/1B when I purchased it, and was in really bad condition.  I did some additional work also to the property.  I replaced all of the electrical, plumbing, put in central air and heat along with the ducting.  All new appliances  and cabinets to include granite counter tops.  New roof, and stripped to the studs of course, and replaced with new drywall and plaster.   Everything was code inspected, and the home was basically brand new.  I paid $25,500 for the property, another $2,000 in closing.  The total amount I had invested in the property was $84,700. I listed the home for $134,900.  However, it sat on the market for 8 months that cost me another $3000 for taxes, insurance and utilities, and that did not include the interest on the credit card bills. I finally sold the home for $115,900.  I walked out with about $15,000 is all , even though most homes in the neighborhood sold shortly before I bought the property were selling for above $140,000. Took 90 days to flip. I am warning you that things are not easy right now.   For this reason, I am sitting on properties, and renting them.  I can do this because I paid cash for them.  These will be your numbers, read and head. 

 Matt if I was in South Carolina I would use you in a second. 

Attention all real estate agents that are replying.  First of all I have used the same broker, so far, and I don't feel I am getting the satisfaction I expect.  Second, believe this or not that investors are your bread and butter, and give most of you repeat business.  Third is that when I buy a low priced property I flip it, and put it up for sell for well over $100,000.  Fourth when I keep the property, I pay the agent to rent it for me, in which they get paid 50% of the first months rent.  Fifth, that when I make an offer on a property, the agent knows that I will accept a counter.  Now when you guy's tell someone that you will not accept a counter from a Government owned property, that either you want to buy it your self, or you just don't care.   Been around the block a few times here.  By defending yourselves here, show that maybe you should be looking for a new career path.  I am sorry if you cannot show properties to investors, I would not use you.  Maybe one investor will eventually buy a million dollar or two property from you in the future, especially after you see they have the money and the credit to do so.  I guess you would rather deal with people that have less than 5% to put down on a property.  You could sell a lot more sub $50,000 dollar property if you wanted to work and make more money.   Did you read this post?  Did you see how many investors got their own license or bought their own agencies, for the simple reason, they had the same problem I am having.   

First of all, who lent you the money, and why?  I cannot get financing like that, unless it would be for a home I lived in.  Second, before you signed for the loan, why didn't you line up your contractors?  This is something that you have to do in succession   I am going to tell you now, that you are going to pay complete retail for your contractor services.  Now, I flip homes, and the first thing I tell a contractor is that I do, I get better prices, because they know I will use them again, and that I pay cash for houses.   I also make sure that most of them to accept credit cards for their work, and yes I will pay them with a credit card for their service if I can.  Most roofers and HVAC contractors will do the work at a reasonable price, if you pay them by credit card.  I have found that most electricians want cash, and plaster/drywall contractors.   Carpet and kitchen contractors do also accept credit cards.  I have a local hardware store that extends me credit for up to 90 days without interest.  I use Home Depot, and Lowe's to buy construction materials, using their no interest, also.   The best thing you can do is furnish the materials to the contractors.  Even by doing that they are going to expect payment when they finish the job.   My friend you are stuck, and you will pay retail for the way your are doing this, and you can expect the flip to cost you a whole lot more than you are expecting, just because the contractors will have to wait to get paid.   Good Luck!!!