All Forum Posts by: Account Closed

Hi Laura,

Congrats on the Re-Hab.... Thank you for sharing the info #'s also... I see that construction had many overruns to include delays and expenses maybe beyond your control. Do you mind sharing what you would do differently today now that you are more experienced? 

When you say you are 40k over budget is that over the 60k you initially estimated (Making the reno a total of 100k)? Have you rented the unit yet? Did you live in the property during Reno's? Just trying to understand your "profit" #. 

Thanks 

Wally

@Laura Levine

  After I "inspected" my post above I have a little bit more and a favor to ask... Crawl spaces (Inaccessible of accessible)  (safe or unsafe conditions)  (stored personal items) . Could you please check your contract and share with us some blurbs in the warranty and disclaimer sections of the report re the limitations of the inspections...As it pertains to your situation

I cannot tell you how many crawl spaces I go into where others would never venture into (because the inspector was to large and the opening to small) or that he pulled "that is a confined space and I am not certified nor have the safety equipment to enter such a space" and how many roofs I ascended to where even the pigeons fear to nest... "My insurance prevents me from going on to other peoples roofs".

Again thanks in advance for sharing (to at least help others if not yourself)...

Wally 

@Laura Levine

I can truly appreciate your frustrations. BUT I have some questions...

Where you at the inspection when it was being performed? Let me clarify, Where you at ALL the inspections when they were being performed and did you follow the inspector around? 

How did you find the inspector or inspectors that you used?

DID you read the contract from the inspector prior to the inspection?....... UGHHH talk about disclaimers.... worse than a used car sales contract!  

Being one that has been in the R/E investor game for many years and also one that is a contractor and has seen the likes of all types of issues "missed" by home inspectors I ask the questions above to help you and possibly help/educate others.

I am not going to protect or defend the inspectors at the same time there can be conditions that prevent things from being seen or not. That is why I am always at every inspection (if I am not inspecting it myself). I also inspect/visit a property I plan on purchasing multiple times prior to purchasing*.  I bring a video camera and record everything...Inside and out! Why? because of reasons just like your issues...

If an inspector misses something he/she should not have and I can document it......Bammm you will get instant satisfaction either from the inspector, his or her insurance company and or the courts... Been there done it! If no proof or documentation it makes it tougher although not impossible to get compensated for inspections gone wrong. IMH(Personal)O inspectors I feel are getting trained on how to limit liability more than how to properly inspect a home. That said there are some really good inspectors. I know I have used some. 

*If I am going to part with any of my hard earned monies I want to make sure I am truly getting what I think I am getting. I often visit a property multiple time (even if it is just to examine the outside) during different weather events (even different tidal times at the shore areas) as this offers me many conditional views to see how the property (and area) is holding up during different meteorological events. Sometimes even wind plays apart of water entering in a home where on most days or rain events it would not...other times it does. I also offer the same freedoms of someone buying one of my flips as I have nothing to hide. If i get someone selling me a property that is not "reasonable" in allowing me re-inspections if needed that is a red flag for me.

Looking forward to your reply

Wally

@Eric DeVito

Brother, what great responses you are offered. I only wish BP existed 30 year ago.... As a contractor and REI-er from when being a flipper/landlord was not very cool I strongly would suggest heeding the advice of almost all the posts here. EDUCATION is key. That does not always mean being an expert at everything but at least having resources to get answers is half the battle.

I do like the post by @Edward Shin

 Planning is very important.... Today I create a business plan for every R/E project I become involved with. It allows me to see everything in black and white, affords me the opportunity to see my shortcomings and or concerns so again I can pre-address them.  To be honest after creating a plan for some of my projects I find it is necessary to walk away. That does not mean I stop investing it means I take what I learned and move on.

I have many family members scattered throughout PA. Many have been there from generations. From owning the largest breweries in the middle of Pittsburgh to vacation SFH's in the Poconos. Some are huge commercial investors others huge multi family/apt investors.

That said, PA is like many other locations as it offers diversity and opportunity all over the state just as NJ does, NY does and Cali does. You need to create that wish list of yours, educate yourself (avoid analysis paralysis) and test the waters. 

Best of luck and let us know how you make out. I am not alone when I say we are rooting for you!

All the Best

Wally

@Bill Gulley

You need to meet the intent and the justification isn't so much as making a claim as not being guilty of violating a few letters, but being able to show that what you do is not violating the intent of the rules. Tax avoidance is fine, tax evasion you go to jail for.

The above statement is one many should pay attention to...

I'm sure everyone thinks that I'm Suzy Straight Lace, Mr. Rules and Regulations.......well, I am, to the extent of understanding how to stay out of trouble. I don't see "loopholes" I see areas of law or rules or regulations that leave the door open that allow room to maneuver. 1. Is it ethical and 2. is it meeting my moral compass and 3. Is it legal

Wow "room to maneuver" I like that one...  I will try to forever use those words in place of "loophole" in my future conversations ... Thanks Bill G.

As to the OP, I don't really buy the loophole definition or the stab at it, thing is there really aren't repetitious operations or tricks used long term to build wealth or advance yourself.

Repetitious operations are one thing I pride myself on... Doing 1031 exchanges over and over has built my wealth tremendously... That said it is always done in accordance to the letter of the law (to the best it can be interpreted by my professional consultants) and under the guidance of my Tax attorney, CPA and other advisors I use for both short and long term goals

Everyone needs to understand that there are enough laws out there to nail anyone if the powers to be want you nailed, there really isn't some unique law or regulation that will be avoided the same way for multiple operators, your case will always be different.

Lastly, Unfortunately I am not an expert in many things. I use trusted professionals that hopefully have the same interpretations of ethical, moral and legal as I... Even legal can be ambiguous as if it weren't we would not have an appellate division in the court system. I am not suggesting in any way that anyone do things that might increase their chance of going to jail. That said life is full of risks and rewards. In my opinion...as a REI those choices are that of the REI to assess and make... 

All the best and I truly appreciate your post Bill G.

Wally

@Joe Moore

Thanks

@Chris Music

 Thanx...

Hello all, I just had a double closing on a property with another BPer. What a pleasure and honor to work with someone as passionate as I ( I am humbled to say maybe more than I).

The deal offered us instant equity to which we cashed out some funds to do another project together on a refi after the initial closing. We have plenty in the bank left over to complete the reno to which an inexperienced investor walked away from to create a profit on the flip which is going to be icing on the cake... 

It all started when my significant other started a discussion with another BPer (she never knew) and I then became slowly involved and wooolaaahhh 3 months later and I have a partner with the same passions and zest for real estate as I.  Yes we come from very different worlds (them corporate america and I more blue collar). But it worked... 

So to others I suggest going to REI meet ups, Share here on BP and you never know what rewards might become of it... Lastly, I would remain cautious but diligent, Cross your I's and T's, do things with an attorney but most of all keep your eyes, heart and soul open for opportunities... Analysis paralysis almost killed the whole thing but we remained vigilant and focused all the way to the bank....

Send me a message about what you are seeking in a mentor.... I suggest  BP can help better than I because of Logistics

@Mark Scarola

UGHHH! I just saw the itinerary and topix at the top of the page.... Hope to make it but a scheduling conflict might interfere.... Will let you know...

Thx

Wally