I'm New...who's The Poster Here I Should Read Up On?
Hello,
I'm doing my best to learn the rehab business in my spare time. I've read a few books, etc...
I have two questions:
Who hear is the guy or gal to really listen to. They always have great answers and they love to help. If you've been here long enough you know who they are. I want to know too.
Second: What things should I have in place before I go out and place an offer on a reahb home (ex. Attorney, lender, contractor, etc...)
Thanks,
Taylor
Hi Taylor,
Answer to first question;
Depends on what the topic is........here at TCI just about everybody brings something to the table.........life experiences that is.
Some have had more experience then others obviously. In construction and investing.........there are more then one method of doing something.....its a matter what works best for you based upon your situation.
Ask the question and you will get a good answer.....if we feel someone is giving bad advice then the moderators will address the questionable advice.
Second Questions:.....
Knowledge is what you need to have in place.......if you dont have it then find someone that does. Many people will not make an offer simply because they feel they are getting in over their head.
When you are looking at a rehab and you lack the knowledge, then bring along an experienced rehabber, contractor or home inspector that can give you their professional opinion at to what problems there are and what the cost will be to address those issues.
Monies can be raised in many ways.....................you will find the majority if not all of your answers here at this site.
If you want to catch a fish......you have got to throw your line into the water ........
Enjoy the site.
NC_Yank
Taylor,
I will have to strongly disagree with the comment that if someone posts bad advice the moderators will address it. I see bad, really bad and down right bonehead or financially/physically dangerous advice all the time here.
Since you are taking the step of trying to discover who consistantly offers accurate advice shows me that you won't have a problem reading between the lines to figure out what is a good, bad and down right ugly response to a question. Advice on the internet is worth just about as much as you are paying for it.
However, to answer your question, I think a short list of posters who have a track record of consistantly good advice are:
davmille, Ny Yank, JohnNH, rajwarrior and Jeffrey Adam.
There are of course others, but those come to mind quickly.
Good luck.
Quote:
On 2004-04-16 10:54, The-Rehabinator wrote:
Taylor,
I will have to strongly disagree with the comment that if someone posts bad advice the moderators will address it. I see bad, really bad and down right bonehead or financially/physically dangerous advice all the time here.
............
Sorry Rehab,
Let me rephrase my statement......(smile) we mods try to address it IF we catch it.
There is a reporting system that anyone can report things to us that they feel are inappropriate.............we constantly get illegal post warnings in our private email boxes...........however many of us have businesses to run and we get on TCI at our leisure.
Taylor, you can also add Rehab to that list he gave............he is a very inteligent person and has quite a bit of insight.......
(hey rehab, you can send the check to NC_Yank....PO Box......)
NC
Yank - you accept 3rd party, out of state, hold checks don't you?
We're getting a bit off point here. Nevertheless, I have to throw in my "two cents" on the quality of the posts. I too have seen poor advise mixed in with excellant advise. HOWEVER, it appears to be bad advise due to the fact that investors from the mid west (for example) are giving advice to an investor on the west coast. In other words, what works (or what is legal for that matter) in one state might not be in another.
Your home state is known to have the most progressive "user friendly" RE laws. Your RE practices often make there way to the east coast (It just takes about ten years). Just be aware of this and you should not have a problem.
To answer your questions:
1) The first response post was accurate- It depends. If you had a roof problem with a historically accurate row house built between 1865 and 1910, I'd be you guy. If not, someone else on the site could probably help with whatever your question is.
2) I would agree with all the examples you gave. I think the lender is first on the list.
Good Luck.
Thanks everyone...
To add a little more info, I am a realtor here in California but only in my first year...the learning curve is still asymptotic (who remembers that term?)
I believe the rehabs are the way I want to go...here's why and feel free to comment.
1. You can always find a rehab if you look hard enough.
2. I like the idea of creating a better looking home out of a not so good looking home.
3. I plan to get cheap labor from my three kids where I can (and teach them the reality of investment real estate as I work them to death...they will see the final paycheck when I sell).
4. I'm a woodworker and gardner...not that I'm great at either one.
5. In my former life I worked for an environmental engineering firm so I know how to talk with contractors (not that I know all the tricks yet...part of the learning curve.)
6. I feel like most investors out here go after the foreclosure market...I have no facts to back that up, just a hunch.
If I may go off topic a bit...real estate prices here in so cal have skyrocketed and I wonder how you price a fixer when you really can't be sure of what your "fix up" price will be...is a sellers market a good place to be when you're negotiating with a junker that may not really deserve to get the "run down" price they want?
Does that question make sense?
Thanks again for the help.
Taylor
To be a Rehaber like our friend from Denver, I would try to spend some time in the trades. If this is not possible I would make my spare time a time of study of the actual events involved in construction.
Many times you see a project that can be done if you can eliminate some of the larger mark ups necessary to employ a contractor. If you know the trades you can do this and many times work closer on a project then any full assignment of tasks to sub contractors.
Also you are going to have to learn the mores of the Dept. of Building and Safety, you must know what to do when you see this little darby house about to change zip codes and covered with little red tags from the local building inspectors.
You do not need to follow foreclosures, you do not need to pursue listings that did not sell. All you need to do is drive up and down and when you see a house that is screaming for someone to come along and help it. Get out knock on the door. When the door opens I usualy say something really intelligent like, "Hi I was driving by and your house yelled out for help." Take it from there.
In my area of the world there are many many older persons who are loosing it. They cannot keep a house up, they are retreating into themselves and the time has come to get them to some sort of a supported living arrangement. The first step is to sell the house. That sale price will reflect the present condition which brings the price way down.
You have to build up the ability of being able to instantly assess what has to be done. You must be able to visualize what it will look like when you finish and that finish should consider the market long before you get to the end of the job.
My first trade was of course plumbing. So I am always poking around under houses and up the walls. Here in LaLa land there was a period of time when all galvanized water pipes were made in Japan and the pinhole leaks were legion. I have taken out a horizontal supply line with so many repair clamps on it I feel I should set up a hardware store and sell them.
Many of our elderly houses back in 1900 to 1930 were inflicted by an electrical system that is described as Knob and Tube. Touch it and if you do not get an imediate shock you will find your hand filled with crumbled insulation. A most satisfying experience. When you see it you have to replace all the electrical and if you are going to do that you should do
it in a manner reflective of the greatly increased requirements for electricity in the modern high tecky residence. You should know that trade also. If not I would hesitate a bit.
I am engaged at this time obtaining the first building permit for houses made from discarded 40 ft shipping containers. I am having to learn all about the trade of steel worker. I never saw a plasma cutter in my life and at the age of 82 I had to go down and make a complete idiot of myself until I learned to master this little bit of equipment . I have to know because I am going to have to teach the crews. I have become a Pharse among wood workers. Little termites in the grass spit on me as I pass, I am removing their food supply. No more wood houses.
My point is you must learn these little tasks. And in the learning there is great joy and a feeling of acomplishment.
I mean if this aspect of Real Estate Investment draws you, hell go full bore learn the tasks. As you get into the bigger and bigger jobs you will find you have gained a measure of respect by the job foreman and the trades. This will be evidenced by closer bids and less BS in the presentations for contract.
Whew! Sorry but its important. Lucius