All Forum Posts by: Shawn Thom

i found out the same thing on one of my flips.  I dodged a bullet because the prior owner had already done all the aluminum to copper connections.  I just had to have them all verified by an electrician.  One thing to note on future ones because this is why I missed it.  I pulled out a electrical plug and I saw copper so I thought i was OK.  Since the prior owner had put the pigtails in, all I saw was the copper.  If I had pulled them out farther I would have seen the aluminum to copper connections.... or better yet, take of the breaker panel and I would have seen it a lot easier.

thanks to both of you.  That answers it!

dealing with contractor excuses and lies.

"The carpet will be installed Tuesday or Wednesday"-  that always means Thursday.

"We'll have everything done this weekend except for a few odds and ends"-  I guess odds and ends means all the appliances, door knobs, plumbing fixtures and painting the garage

"We'll have our part done by Tuesday"- Your the GC, its all your part... what exactly does that mean??

"I didn't notice that the ceiling fans hadn't been replaced"- so when you walked into the bedroom and you say the wires hanging down and the ceiling fan in the box in the middle of the room, what did you think it was?

When I bid on HUD homes and loose (which is everytime), i like to go back and see what the winning bid was. Do you know how they come up with that number? I seem to remember JScott or someone breaking down what they post as the final number.

For example, i bid on a house with $44,500 as my bid. Winning bid shows to be $41,500. At first glance, i should have won. if i remember right, HUD backs out commissions and closing costs since you can say what you will and won't pay for when you place your bid.

Anybody know the right answer?  i am trying to get better on my bidding.

You don't say what kind of deals these 100 deals a year are.... wholesale, buy/hold, flips...

if there are rentals, I suggest drafting rent payments.  I use erentpayments.com.

If you are signing contracts, I'd use some sort of electronic signature method such as docusign.

If you are doing your own marketing I'd figure out what your niche is and figure out how to use public information request to the city and have them do your work for you.

If you are fielding calls/prospects, i'd figure out how to use a virtual assistant to help multiply your time.

I'd suggest using quick books for accounting.  Starting it at the beginning is easier than getting migrated to it after the fact.

Based on the limited information given, that is all i have.

I agree, a detailed SOW helps resolve disputes.  Also making sure you leave some money due upon completion.

also how are you paying.  Credit cards gives you some security in that you can dispute charges and possibly get some money back.  If you are paying via check, little chance of getting money back if they bail.

I didn't read all the comments.

I think an important thing to talk about with the spouse is what happens if things go south.  Eventually everyone has a bad day and things don't go as planned.  If you are talking your spouse into something, make sure they understand all the outcomes.  It is especially important in the beginning when you are less tolerant of a failure.

I've been in both places... I've been pretty heavily in debt compared to income and I've been repetitively debt free.  I loved DR so much I used to teach his classes at my church.  I believe in what he teaches and the Christian aspect of his relation to debt as well.  There are many that will take the secular parts of debt free living and not use the Christian references.  That is fine, but you won't find the next paragraph too interesting.

Before I got into real estate, I was 21 payments away from having home paid off and being 100% debt free.  I felt more and more called to do something different.  I had always wanted to do real estate.  I felt I had some of the skills and drive to be successful and I had some family members that were willing to help me who were very successful in it.  The final straw came when my wife got an inheritance..  Eventually the calling became more deafening.  Specifically the parable of the talents (mathew 25:14-30) spoke to me on taking advantage of the opportunities I was given and the using the physical, intellectual and spiritual gifts I was given.  I felt like the last servant in the parable and had buried everything in the field.  From there I pulled some equity out of my home(still a conservative amount) and took the plunge.  Made some mistakes, had some successes, God showed me his favor and I'm still going.  

The short answer is that everyone has to make their own minds on debt.  I try my best to only use debt when it can make me money and even then I am extremely conservative.  So far, so good. I have been successful, love life, try to give often, and share what I know.

PS, for the record I think the parable of the talents is significantly about more than making money.  

 Correct.  there are several banks in dallas area that will do 6-8.5%, 1 point, 15-20% down.  Just have to start calling.

I'd strongly encourage you to just open up the yellow pages and call every local bank in there.  You can find some MUCH better rates than what have been listed here.  Also, some of the bigger wholesalers will send out stuff with all their "preferred vendors" on there.  If any of those on there are banks, their rates will typically be better than hard money rates.

I did 14% interest once, it was one of the most stressful thing i've ever done in this business.