All Forum Posts by: Shane H.

Welcome @Shyla Burdine  Sorry I cant help with the forms as I do not practice wholesaling but am thinking there are a couple of local wholesalers active on the boards who may be able to guide you.

@Carl Willis

Welcome @Luke McGaugh another fellow Wichitan here.  My dad some years ago worked for Fed Ex for around the same amount of time you did and had to quit them earlier than he wanted for the same reason you cite.  It's a grinding job.

Welcome @Alex Peransi  Fellow Wichitan here.

@Greg H. 

@Greg H.   @Gordon Vaughn  @Andrew Syrios

Enjoyed the thread and the info contained within. Andrew I'm guessing you've bought a # of HUD homes in the KC market? If so I'm sure there's a fair share like Wichita that get the power shut off and the basement floods.

Greg, Gordon, Andrew -- have you noticed any particular rhyme or reason to what HUD will accept on a HUD house that has mold in it?

I looked at one where I feel comfortable bidding 59% of what HUD is asking due to the water damage in the basement (I couldnt see mold but I'm pretty sensitive to it and could definitely smell it -- was very strong and I suffered from some congestion for 2-3 hours after being in the basement)

HUD has not disclosed the mold (unsure if the PM company missed it or their inspections were performed before the basement flooded -- guessing it only got 1-2" of water in it) however it was in the house long enough the humidity warped some of the flooring upstairs and warped the door going down to the basement -- however I did not see or smell any signs of mold upstairs so feel for the most part comfortable buying the house.

Am I wasting my time submitting a bid 59% of what HUD is asking? I have to be in this area with the repairs I think the house needs to bring it up to my standards for investment/long term maintenance for it's future life as a rental or sale down the road when the neighborhood is a little more revived. Per the listing agent there have been no bids submitted at all on the house and I think most have been scared away. I want to buy this as an owner occupant, live there for a couple years then move on to something else as I could potentially create a lot of equity and the house would later fill my needs after I move out of serving my college student market. I've got my reasons on why I believe in the upside and want to limit my details on the house as there are a # of other local investors on BP.

Enjoy the thread guys and would appreciate any feedback -- dont want to waste my agents time bidding if it doesnt have a chance in hell of being accepted.  I found out the house has windows that are prone to fail as well hence the reason for a lower #.  It's sad as they appeared to be nice Pella double pane casement windows - however they were made in a bad part of Pellas history and are certain to be rotted where I cant see them.  The appeal of the house is it's had massive remodeling done in the past 4 years upstairs and is completely modern there, just had some poor craftmanship on a couple areas (tile work primarily).  Not much to be done on the main floor besides minor things.  most work is flooring, remediating the basement, paint and updating one bathroom along with siding repairs/likely window replacement and massive landscaping and  concrete work I like doing.

(HUD is selling as FHA Insurable if that makes a difference -- I dont see how this house would qualify for traditional FHA financing but maybe FHA loan underwriters hit the crack pipe every now and again and would let this one slide) I wont have an issue getting financing as an owner occupant due to my banking connections/past experience but am unsure how most will get financing on the O/O side most local investors will likely ignore the windows and pass them off to the next owner sadly if they are flipping. I cant do that plus it makes no sense with a 10 year timeline to hold the property).

Was this in the Colorado market?  Wichita has quite a bit of tired medical office space as well.  I've noticed a lot more Minor Emergency clinics pop up around here.  Had to use one for my 2 yo son during flu season the past winter - was surprisingly WAY more affordable than even the primary care Dr's office.  Sorry to change course, but like everyone else I'm very curious how the medical industry will change in the coming years.  One can only hope for the better while creating some investor opportunities.

Wish more people would take this advice.  Something I try to live by and I certainly echo your beliefs.

Maybe I'm a bit old school, but that seems pretty ghetto.  What kind of property are you putting this in....Section 8 or very low income?

Stuff would probably be pretty hard to paint around when you repaint as well -- something to think about.

Why not a hardwood like Ash or Oak - stain dark and  put 2-3 coats of poly on the top -- Ash and Oak are both pretty affordable if you get the smaller base.  Look pretty good if stained or painted right - If painting - buy some Sherwin Williams Enamel paint.  Oak has held up pretty well for me due to how hard the wood is.  Hard to screw it up and if you do it's easy to repair.  Last tenant move out the tenants cat used 4 door frames and the newel post as a scratching/marking post - due to the hardness of the wood only cost me $100 (well the tenant) to have it repaired/touched up.  

No offense or trolling meant for the ghetto comment - just what comes to mind and appears super cheap - looks like something you'd find around here in a 1970's aircraft plant dated C or D grade office.  Is that a normal construction residential material used in Nevada?

@Brit Foshee

Nice looking result!  And return to boot.  I lived in Ft Myers/Cape area 2005-2006 before I went back to KS.  The market heating up again down there?  Hope you all dont have another crash as severe as the one we just went through.  Cape Coral was one of the worst in the nation if I recall for the foreclosure rate at one period in time.

Been chomping at the bit to take the wife down there during the winter/early spring and enjoy Sanibel or Marco.  Our son is old enough now should be able to do that this coming spring hopefully.

@Dmitriy Fomichenko @Mark Nolan @Account Closed

Thanks for the responses! I was kind of figuring the LLC we have set up would be out, but had not run across a scenario like that being discussed online or on here...may have not looked deep enough....but thanks for the clarification.

Mark - interesting that you can do business with a brother/sisters IRA, I was thinking when they said direct family or whatever term the IRS used, Brothers/Sisters/Aunts/Uncles would be out. My aunt/uncle are a possibility if I want to look for private money however I frankly hate owing family money, never really have owed any of them anything and have seen too many negatives of family/friends owing each other and it going south, dont even want to go down that path.

Think I'll stick to relationships with banks.

That being said will throw the idea of the IRA buying a property in cash, though he may not want to outlay that much cash and I could manage it and just take a management fee - dont think he's completely sold yet on using that much cash ($100-160k or so for a house) even though I've showed him the numbers and he'd net significantly higher returns vs having it in a crappy mutual fund. Hoping he's coming around to doing a bit more financial planning now that retirement is knocking at his door. We've had more discussions on it lately than in a long time.

Thanks again for the input.