All Forum Posts by: Scott Schultz

First I will say congrats, second, your doing it in the wrong order, ALWAYS look for money when you don't need it, so it's ready when you do! But since your in this situation, seek a small local or regional bank, speak with the mortgage person if you can qualify for a FNMA loan, if not go to the Commercial Lender, one of them will probably be able to help. Good Luck

ive seen frozen houses from dead T-stat batteries, if i can save just one insurance claim, it would be worth it to spend $12 instead of $17 on a Tstat. 

As we come into fall, I was thinking about the next 2 rehabs we are starting that will include new furnaces, and I just had a Boiler installed at another property. The advice from the HVAC Guy that put the boiler in, was to leave the old manual T-Stat, because if a tenant moves out at midnight in January, the heat will still work, because they dont require batteries, like the digital ones do. Do tenants really care about the T-stat? all mine are SFR's so tenants pay all their own utilities. Keep in mind, Im in Northern Wisconsin, we can have sub Zero temps for weeks at a time, and pretty much 5 or more, months of below 32 degrees. pipe freeze up and extensive water damage, can occur in less 24 hours of no heat.

@Chad Nagel

@Samantha Klein In my opinion, this is not a deal, sounds to me like Retail Price, even at $100K on the top end I would not pay more than $32K/2 bedroom unit, in turn key condition, you should be able to find units for half that in your area with that much work needed if you look in the right places, the key is being diligent in your search, and be patient, you need to search all avenues, and be ready to move when a deal is in front of you, I have been successfully buying at 30-40% of current condition retail, and be 50-60% of ARV total investment, I have been averaging 1 every 6 weeks for the past 14 months now that fits in those figures, but im buying SFR's. Also if there is a way to have access to cash to close, this helps greatly, i generally close with cash, and finance after repairs to get my money back, cash will generally get you a 10-15% discount over financing when you negotiate, and opens doors to Sheriff Sales, as well as Online auctions, both condition unfinanceable, and Occupied Properties, you get a better deal if you take the headache

In my opinion, unless you could get rent of $1400 or more, it's not a good buy and hold, also as for a loan, go see a commercial lender, you can buy in an LLC and don't have as many hoops, they do finance SFR investment properties. You could also Wholetail the property to an end user if it would qualify for secondary financing to a end user. Or if the seller does not expect proceeds, maybe you could work with them negotiating a short sale, and get a better price. Good luck

Here is some reading you may want to do prior to investing.  In many cases its wrong doing by the QI, but this area seems to be ripe with fraudulent administrators. 

 https://clintcoons.wordpress.com/2015/06/27/equity...

http://www.nasaa.org/5866/self-directed-iras-and-t...

https://www.sec.gov/investor/alerts/sdira.pdf

http://articles.chicagotribune.com/2013-09-29/mark...

@Evan Hughes you can buy and rehab a flip in your IRA (i know a guy that does just that) but you will not have a roll other than coordinating work, you are not allowed to so much as sweep the front porch, think of it this way, do you go to your IRA's custodian and work at their office in exchange for equity? same principal. Just be careful if you go this route, many of the "Check Book" IRA's as some other self directed are being investigated by the IRS, it would be horrible if down the road you find out from a court ruling that the transaction is deemed a taxable event. I have and will continue to advise to steer clear of these, if you want you IRA in RE, there are plenty of ways to do it that are not questionable.

I'm considering a Direct mail campaign, but my area is a heavy tourist area, with about 40-50% being second homes and seasonal rentals, so absentee owner lists are pretty difficult to weed through, obviously I will need to focus on NOD's and Tax default, and death notice/estate/probate lists, anyone have experience in a heavy second home market? Any tips? I am buying about one every 6 weeks now, but always looking for different avenues.

well if you put as much work into finding deals as you did your plan, you will be successful, will it be exactly as planned, NO, but thats the fun, just dont be too optimistic on the market, my goal is to be all in after rehab, no more than 60% of ARV, because if the Market Drops 20% like in 2007/8, i still have 20% equity to borrow at 80% LTV, watch your numbers, and you will be fine, the cost of hard money is a big nut, so be carefull with that as well. Good Luck