Forum Replies Created
Nigel
I don't buy properties just because they are cheap but if you fully rehab a unit does that add any value to the property in your opinion? These properties are not war zone units but still in the inner cities. I'm seeking your opinion on cheap properties. Because to me there is the level of the rehab that has to come into play. I don't do roof lay overs but replace with 1 layer with timberline 40 year on most of my jobs. I scope sewer lines and replace MOST if not all my units have new sewer lines from the foundation wall to the roof. I rewire every house to updated standards. And put in new windows if the majority of them are in bad shape. And all my units have central Air which you would assume most people would do but they don't. And if a tenant moves out the property is in good enough condition where tenant placement will not be a problem. I feel that the problem comes in where the rehabbers fall short and just say a property is rehab but in all reality it is lipstick on a Pig. And when the house finally collapses its the new owners fault.
Zmagen
There are plenty of wholesale deals in KC still in the same price range of 2009 for sure!!!
I think you should mention that in my opinion the inspector must be independent from all parties involved he/she is only working for the buyer and that is it. Many people know each other in the industry and you can't stop that but I've have seen things pass inspections that should of never passed and I am a licensed agent but I do earn commissions…..just sayin LOL
What do you expect to pay for the service you are talking about. I am just curious.
1. You want them to find the house
2. You want them to manage the rehab
3, You want them to find you a tenant
What is your limit on what you are willing to pay for that service
I provide that service in KC and I charge a flat fee but you get my labor prices and my discounted material price because I buy so much for example I just bought wire today around 2375 feet and paid 519 before taxes 560 after taxes and that was with 20 or 30% off I really can't remember LOL as it was just this morning but I have receipts to prove what I am saying
and that was at home depot where they clearly lost money as they sell wire at cost but again I buy so much I get certain benefits.
Again just asking what are you willing to pay for the services you are asking for
I would say you do have to be careful of what you are buying in the states being overseas. I am a property manager in the US and manage several overseas clients. I have a list of things I would recommend before you purchase a property
1. Hire an independent inspector one that works for you and only you. They have no affiliations with the company you are buying the property from.
2. Actually find out what the ROI is at purchase is the property rented? Is it section 8 or market tenant. Is there an deposit.
3. Look at the management agreement and pick out all un necessary cost and cut them. All fee are negotiable. The management company may not want to bend on a few things but overall you might be able to find out what is fluff or not
4. This is most important READ your inspection Report like 10 times to make sure what you are buying is sound.
5. Ask as many questions as needed to assure you are doing the right thing by your money as remember its your money no ones else.
6. Remember this is an investment and there is Risk involved.
7. Get a good insurance company one that will stand by you at time of need and not one that will drop you the second a shingle is missing off the house.
I find that sooo many investors have not done their home work gone off what other brokers have told them and just went with it. When I sell a investment to a buyer they are getting a fully sustainable product that will last for at least 10 years without any major damages. New Roof, ( 30 to 40 year timberline) New Electrical, New sewer lines, New bathrooms and Kitchens, and most important full Heating and cooling systems most tenants don't want window units for AC in their house. So there is no way you would have issues other than tenant damage.
