All Forum Posts by: Ryan Stahr

Just do your math - The 1% rent rule is a "rule of thumb" for one type of strategy.  It is definitely breakable. 

you said the properties possess all the qualities you're seeking so pull the trigger. What are you worried about? 

If you want better deals, take $5,000 of your down payment funds and send out mail until you find a great deal for you. That $5k is worth every penny if you get a $160,000 house for 10% off.

@Allan Smith i agree with your OP 100%. The role of wholesaler is being abused right now and could be considered moot in many situations. I work with a virtual wholesaler and we have closed only two deals so far this year in Nashville and both have been with myself as the end buyer (so we paid a little more to the seller) and also very unique situations (probate, inheritance, etc.). 

Most of the offers I make to traditional sellers with high equity positions are seen as lowballs....the sellers regularly have 5 people bidding on their property, driving prices up to the point where it might as well BE retail. Sure, it benefits the seller in theory, but hinders the two other parties involved. 

What's driving me crazy is that sellers very rarely know when the other offers are being made by unscrupulous wholesalers or true investors. They don't ever know who can actually close! How do you convince them you are an honest businessman who is making a fair offer that will close no matter what?

I've talked with enough sellers who have experienced a sale falling through that part of my negotiation discussion is to explicitly say "this number is low because I will guarantee a close at this number". I've started offering even LOWER than normal so I can make that promise. I think that's a true value add. The sellers will eventually get tired of BS offers.

@Tim Bergstrom I think you're talking about different types of inspections. A home inspection is what you have performed when you have a property under contract, performed by a home inspector. These are inspections for your knowledge and detail what needs to be fixed.

Depending on the scope of your renovation, there are also inspections required by codes administration and performed by codes officials when certain aspects of a structure are updated by licensed trade professionals (e.g., plumbers, electricians). These usually are performed mid project. These are pretty closely tied to the build permit you should be pulling to perform your renovation. 

I'm no expert but I always have my tradesmen be licensed and pull permits for plumbing, electrical, structural work. Here are some resources. Might be worth a few phone calls. 

http://www.nashville.gov/Codes-Administration/Codes-Administration/Department-Listing.aspx

@Rylan Kean has the estate already been settled in probate court? Have your lady hire an attorney to complete or reopen the estate. Pay for it if you need to. Might be worth it? A judge can force the sale - might take 6 months, but sounds way easier than dealing with uncooperative people. 

I did something like that earlier this year. I know a good probate attorney in Nash. 

@Dennis R. No, I just kept up with it as another category of expenses on my renovation spreadsheet.  Ended up working out fine. I now use the spreadsheet from the BP Guide to Estimating Rehabs with extra rows for points, percentage rate, and administrative draw fees. 

@Austin Williams Welcome to the market. There is plenty of competition here but also plenty of work to go around. I encourage you to pull the trigger and get involved. 

That said, what does "approved for financing" mean to you? Anything can be financed, just not always by Quicken Loans. 

 What does "small budget" mean to you? I have a renovation going right now with a $35,000 budget. Does that make you cringe or chuckle?

What is your exit strategy for your fixer uppers? rentals? sell on the retail market?

All important questions to ask (plus tons others can add) before you dive in. 

I got my first hard money loan this past week for a property and the costs are adding up quick! 

Does anyone have a great spreadsheet or tracker to keep up with all tertiary hard money costs (origination fees, draw administration fees, debt servicing, etc.)? I'm building one out as I go along but it'd be helpful to see what other people have experienced. 

@Chung-Hsuan Yu is that property on Cecilia? I did an inspection on a property on Cecilia recently that was listed at $175,000 and it was a duplex exactly like you are describing. 

Mine Had termites in the back exterior wall, in the floor joists, moisture %'s upwards of 75% in the crawlspace wood, and needs joist repair before it would be considered "livable" by a bank. Also has non-working HVAC's. 

Make sure you're doing your due diligence and also PM me the address of this property. 

@Jeff Prather if you aren't marketing yourself, connect with a good realtor who will send you deals the minute they hit the MLS.

Because Sean is right - there are still deals on the MLS if your ONLY goal/strategy is to buy a duplex and rent out one side to live rent free. That's just a numbers game - loan amortization, down payment, etc.

REIN