All Forum Posts by: Shawn Thom

I've been but it's been a long time. I used to do a little business with joe who runs it. I never felt like much of a sales pitch. He does do some mentoring on the side which he will pitch but it wasn't a hard sale. I did sign up for his marketing program which was not fruitful and a "burn out" class which did have some useful info. I stopped going mainly because it was an inconvenient time but also because the side benefit of gaining contacts of seasoned investors wasn't there. It was mainly newbies. If I wanted to go to more rei meetings I'd go to this one still

I had a similar issue with my first flip and a new toilet I put in.i know the toilet and plumbing was ok as I used it for weeks prior. It clogged 2 days after she moved in and was flooding. I didn't want to worry about it and didn't want the drama anymore. I offered the buyer $250 to fix the problem. She accepted. I had her sign an agreement stating she was accepting the house as is with any additional faults known or unknown . It was worth $250 for me to not worry about it anymore. In the end $250 wasn't much of the profit.

Does he have a lease or is he month to month?

I think you need to slow down. What legal reason do you have to do anything? They are paid up. For all you know he is out of town. He may have moved out but you don't know. What does your lease say about abandonment? Or leaving for an extended period. Are his utilities on? If no What does your lease say about that? Give what ever notice your lease requires for an inspection. Go over there and get more info. You need to get legal counsel before you get yourself into trouble.

well...... we really need more info to give you an accurate answer.

Is your interest rate fixed?

Are you competitively priced in your market?

Do you have reserves?

How much are you cash flowing?

If you are on the top end of your market you could have issues during a bad economy.  If you have a renter kill your property during a recession and you need a full rehab and you are properly funded you could have an issue.

if you have an ARM that shoots up the % of your loan and can't find a way out, you could have a problem.

If people get laid off and stop paying and you can't evict them quick or easily enough.

nothing is guaranteed.  You don't know if rents will stay the same in a future recession.  I'd just prepare for rents to drop at some point when making new purchases and have reserves ready if needed.

pic of rehab #6

and my hard wood floor surprise

Pics of flip (rehab #5)

Finished up rehab #5 (a flip) and got it sold last week.

I closed on it Dec 31. Rehab was cruising a long during the first part and we thought we'd be completed early. A few weeks into the project a guy tracked me down through the tax records, then found my number on my website & facebook. he called me up and was interested in buying the house. He wanted to buy it for less than I wanted to sell it.... so we worked out a compromise of me not doing any landscaping, not fixing the sprinkler, and not doing any repairs if any were found by an inspector. He went for it. That ended up being awesome because I typically do the landscape myself so that made my job easier. I had a good surprise on it as it was about 500 sq ft bigger than tax roles showed which helped my ARV. I pulled city permits and records and it showed correct square footage there so i had that ready for if the buyer's mortgage company questioned it (which they did).

After tons of weather delays and scheduling drama with my contractors we closed with that same guy.    I was nervous about selling with out a realtor.  I got a trec contract, signed up for a month of legalshield prepaid legal.  I had legalshield review and tell me where I missed some stuff on the contract.  Between that and a title company helping me out, closing without a realtor went well and I saved thousands of $$.   Ended up being my best profit to date.  

So i closed the above transaction on Monday, then closed on my next house on Tuesday which will be rehab #6.  I've never had them timed so perfectly!

This house is low end and will be my first go at selling it as owner financing.  Its a 1957 build, small 3/1.5.  It needs electrical, foundation, sheetrock, paint etc etc.  I pulled a @Brandon Turnerand pulled back the carpet and found perfect hardwood floors.  they are through out the entire house.  I'm not getting too excited about the floors until we do foundation work and see if they buckle or have to get cut through etc.

Between the sale of #5 and the purchase of #6 that puts me a smidge under a grand total of 1 million in real estate transactions.

Pics to follow.

How hot is your market ? If it's a hot market there could be an issue... Price, location, features etc. What's does your agent say?

Did he take measurements? Appraisals typically will measure every interior room and exterior walls. Also they will take exterior pics and often of street and alley if applicable. He could be getting a commercial type or portfolio loan that may not be a requirement. If I was guessing I'd say he is selling the place.