All Forum Posts by: Account Closed

Brandon,

Looking at your pictures I would be looking to take this project down to the studs.

I have found it way cheaper to find a demolition company to do the demo vs a contractor.

30 to 40 grand for a remediation is absurd.

If there has been roof leaks or even plumbing leaks for a long period of time, removing all the rock will give you a chance to look at the frame condition. 

Then fix all that needs to be fixed and put the house back to order.

Jen,

I think I understand what it is you are saying.

With a remodel or retrofit as you are calling them, these will be installed after the sheetrock phase.

The thing to take into consideration is the labor of the electrician. He will need to cut the whole in the sheetrock, side note, I haven't found to many sparkys that enjoy doing this. This is additional labor for him and may cost you more. You will want to do cost comparisons to find the least expensive way.

I think you will find labor costs are way more than the can.

@David Yates, David,

Yes, the options gave me the right but not the obligation to purchase the property in 6 months time.

The market in the day was moving so fast you could have some serious equity in a 6 month time period. So when I exercised my right in 6 months the property was worth substantially more than 6 months prior. The options gave me the right to buy at 6 months ago pricing.

Shawn,

Great question and a tough one to answer.

I have been building for forty years and covered just about every architectural flair.

The most satisfying would be the true post and beam style houses out in New England. Putting together the frame first and then building the house around trips my tripper.

We have gone through a lot of different seasons, now we enjoy the simple straight lines of a contemporary structure, simple structures, flatter roofs with large overhangs, tons of windows for all the natural light.

When we do a flip we will always try to honer the period. For example we will take an outdated 70's house and make it a seventies modern.

David,

I have bought land on options. It is a great way to purchase at todays prices at a later date. I took the training I learned on stock options and applied it to real estate.

I found a 5 acre piece that was for sale, put an option on it. Knocked on the two adjoining 5 acre parcels and made it inviting to them, put options on those.

Now that all these properties are tied up I went to the city with the zone changes, annexation to the city and proposal for a subdivision. All looked like a go, so I started beating the pavement for money, it took awhile but I did it. Six months later I exercised my options and bought all three properties with six months equity already built in.

This is in Oregon so I can't speak to the rules and regs where you are at. You can however spend an hr at the building dept counter and get a wealth of first hand information.

Michael<

Both Mark and Jeff have given you some good advise.

I would emphasize the out clauses.

I have been in partnerships in the early days that ended poorly do to no out clause, these were defiantly ready fire aim deals.

I have also been in successful partnerships that ended well because the time was taken to think through and write out as many out scenarios as we could.

Usually when a partnership ends the emotions can be running high and if it isn't written the memory tends to be pretty short.

Shawn,

I am not a fan of tile. Don,t like the grout issues down the road. Discoloring and staining.

We do a lot of high end remodels and builds. Just recently put a LVT in a basement that is off a pool area, this product is 100% waterproof. Luxury vinyl tile. The one we put in looks just like wood, we are fans. Another product we use in most of our bathrooms is marmoleum, a little on the spendy side but it lasts. The color and pattern selections make it easy to design with.

Aaron,

Jay brings up a good point.

Having a relationship with your lender and starting there is always a good strategy.

We often reach out to our lender and quiz them prior to looking at a property. This is what I was eluding to in plan a, b and c.

If you know what you can do conventionally it will open your creativity privately. 

Ask the owner what his goals are. Maybe he will be willing to carry with the down and incremental payouts. This will spread his tax burden out and give him chunks for an extended period.

I have had many properties in second position to conventional financing.

Aaron,

I like your thinking. The sky is the limit on financing.

I have been down a lot of tubes when it comes to creative financing.

Here is what I know for sure, you will not get it unless you ask.

When I reach out to people I like to have my guns loaded. I like to have thought through scenario A, B and C before I go to the owner of the property.

By having thought through a few different scenarios when the conversation takes a different direction it is easier to adjust your thought process and become creative.

On other posts I discussed buying property on an option, similar to stock options, who new.

@Bethany McCullough

Our properties are in Bend. That companies name is Velocity property management.