All Forum Posts by: Rick Pozos

I would find out WHY does the seller want to close in 5 days or less. Is there a pending foreclosure? or some other issue? Most sellers know that it takes time to do title work and get financing set up. When someone is rushing me that much, I tend to ask more questions and if I am not satisfied with the answers, walk away.

If you are in 2nd position, the buyer probably does NOT have skin in the game or very little. 2nd position is so much more risky when it comes to rehabs. I would only do this type of situation for a family member or very close trusted friend. Both YOU and the investor should have a great deal of knowledge of what can go wrong. Lending in 2nd position is NOT for the rookie lender or investor.

Even if the borrower has not filed bk, he can now and cause you lots of grief.

If you have to do this, make sure that you go to a title company and they give you title insurance, that the owner pays for. Make sure that the title company gives you a mortgage and a deed of trust AND it gets recorded. Do not close without title insurance.  Attorneys work for the title company so you know that your documents will be done professionally. I sure hope that you are making at least 15% because that is the kind of risk that you are taking on.

And if you make the garage a garage, then you have a 3/1 with 1200sf? Not having a garage lowers the value quite a bit. Solid area though. Are you doing the rehab?

@Tim Macy congrats, I saw you on TV!!  Superstar!!

And on the 2nd Wednesday of the month I have a group that meets on the northwest side of town. All the info on my profile.

Hey Valerie,

There are a bunch of people here in SA on the forums. Welcome. Network and meet others that you see here. The podcasts are great. 

THere are a couple of good big networking groups in town and a bunch of smaller free groups. I have one that meets every month. All the info is on my profile.

Good luck and let me know if you need anything!!

There are no meetings scheduled. When are the meetings??

I would only hire a foundation company to level a house. Too big a job for a handyman, even if he says he has done it many times or used to work for a foundation company. 

Being cheap ALWAYS ends up costing more. The people will walk off the job because, like you said, they want more money. They low ball you in the beginning to get started and they know they can squeeze you more after the work gets started.

I never do a contract with release of liens and all that, but I dont use someone new for a big project. I would use a new contractor to do a few small items that will not cost me much money. Move them to bigger things as time goes by. Build trust in the person. Then maybe move them to bigger projects. If you have to start with a bigger project, dont use someone you have never used before.

To answer your question, skilled person for several little jobs about $150-200 for the day. Some people pay less, some people pay more. 

The problem is why will a person sell you their house at 70-75% of value. They can go to a realtor and sell it with them. Or they can sell it themselves and save the realtor fee.

You would have to market to someone who is strongly motivated to sell at a discount. The person has to be on the verge of foreclosure, family issues, or some other issue that would move someone to HAVE to sell. Not WANT to sell. That person is not alway easy to find.

You never EVER pay a fee up front to get a loan. Any closing or origination fees will be taken out of proceeds that you will be getting. I think someone just got all of your personal information!!!

Dont send the money. 

The county will sell you a list for about $250.