Where are all the experienced rehabers????? - Posted by Adam(NY)

Posted by Ron (MD) on July 15, 2002 at 16:56:57:

Gerren,

A few years ago, my dad asked me what exactly I do for a living. In addition to describing it as best I could, I also gave him a copy of that book, which is very good.

Ron Guy

Where are all the experienced rehabers??? - Posted by Adam(NY)

Posted by Adam(NY) on July 10, 2002 at 18:34:44:

HR, Ron(MD), vic, etc… haven’t seen your posts in awhile. I guess your busy(good).

cya
Adam

Great Source for Rehabbers - Posted by deborah davis

Posted by deborah davis on July 26, 2003 at 11:18:38:

Hello,
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Re: Where are all the experienced rehabers??? - Posted by Ron (MD)

Posted by Ron (MD) on July 11, 2002 at 08:02:54:

Adam,

I’m still here. Haven’t been posting much, though. It’s partly intentional…I do enjoy stopping in here daily, but it becomes even more time-consuming when I start putting in my two cents. Also, rehab-related topics are relatively infrequent here, so I’m not often tempted to step in.

I’ve been trying to diversify my business lately for a couple reasons. I’ve been buying some Section 8 rentals to create some streams of passive income. (I do fairly well with the rehabs, but it is very management- and capital-intensive.) I’ve bought four units so far this year and expect to get a fifth under contract in the next day or so. The income is impressive…I’m getting into these properties for about $20k (including modest repairs) and renting them for $740 to $1,200 per month. (The higher rent is for a two unit house, with each unit renting for $600.)

Secondly, I’m trying to move toward the “pretty house” / creative financing type deals. So far, I’m just getting my ducks in a row and plan to kick off marketing efforts next month.

Still chugging away at the rehabs, but the volume is off significantly from plans. I did 15 last year and may only do 10 this year. The number of junker REOs coming on the market here in Baltimore is down dramatically this year. No one seems to know why that is, but the result is clear…supply is down, demand isn’t, so prices are way up. I’ve been holding onto my profit guidelines, so I have to work harder to get good deals. (I do take some consolation that I have been buying the rentals at the same time…a few of which I could have rehabbed and sold, but have kept.) I’m hoping that my marketing for pretty houses will turn up rehab deals, as well.

So, like I said, I’m definitely here every day trying to keep in touch and learn more about the business.

Regards.

Ron Guy

Some of us are still around. - Posted by Jim Kennedy - Houston, TX

Posted by Jim Kennedy - Houston, TX on July 10, 2002 at 22:51:08:

While I don’t do as many rehabs as Hal or Ron, I still consider myself an experienced rehabber. Rehabbing is one my three niches. The other two are landlording and “pretty houses”.

I would also suspect that there are other rehabbers lurking around this site.

Best of Success!!

Jim Kennedy,
Houston, TX

Re: Where are all the experienced rehabers??? - Posted by Mark-WV

Posted by Mark-WV on July 11, 2002 at 10:19:09:

Ron, I think your on the right track . As we talked about in March I’ve done pretty much the same, as the fixers have started to dry up and have picked up some high end houses.

I have rehabed 3 this year and sold all of them quickly (in less than 2 weeks each) and have sold 2 of my rentals on cfd with disc you sent me for the contracts.

Remember the deal I was working on during the convention ? Bought it at 22k ,put anouther 12 K into it, rented it out for 2 weeks at $900 then sold it for 75k taking 9k as a down payment and $500 per month on 30 years. I like to do about 10 of them a year !!

Good luck in all your deals,
Mark

Re: Some of us are still around. - Posted by Jason R

Posted by Jason R on July 11, 2002 at 01:39:56:

What exactly is “pretty houses?” I’m just not sure what type of property that is, or how one invests in them. I’m probably asking a stupid, or obvious question, but I’d appreciate an explanation, even if it’s brief. Thanks.
JR

Re: Where are all the experienced rehabers??? - Posted by Wade

Posted by Wade on July 12, 2002 at 17:13:44:

To hear stories like the both of you told reasures me that I’m in the right place. I’ve been reading books and posts on Real Estate Investment, and I’m looking toward starting off rehabing because it sound like the most cut and dry. Probably the best book I’ve read so far on the subject is “Buy it, Fix it, Sell it” by Kevin Myers. That book alone has taught me more than I could have imagine. I haven’t yet bought my first propery but I’m currently looking at a couple and plan to sumbit bids on each of them early next week. In years to come I hope to be sharing stories as you two and inspiring new comers into the business. If either of you could give me some advice (books/exp.) or opinion I would really appreciate it. Probably the best advice would be a few more success stories.

Thanks in Advance,
Gerren W. Babin
Gbabin56@aol.com

“Pretty Houses” defined. - Posted by Jim Kennedy - Houston, TX

Posted by Jim Kennedy - Houston, TX on July 11, 2002 at 08:05:55:

Jason,

“Pretty houses” is what I use for lack of a more precise term. I borrowed the expression from Ron LeGrand. It basically describes buying/controlling houses that need little or no work to make them move-in-ready.

I use two ways to structure the deals. My preferred method is to acquire the property “subject to” and sell them using a lease/option. Alternatively, I use a sandwhich lease/option (acquire the property using a lease/option FROM the seller and dispose of the property using a lease/option TO my tenant/buyer).

Some investors may refer to this as “retailing” because I’m selling the houses for full retail value. However, the term “retailing” only describes the disposition side of the transaction. And generally it’s used to describe a transaction where you cash out of the deal. In other words, sell it to a retail buyer who gets new financing that pays off the existing liens and gives you your cash profit at closing.

Other investors may refer to this as “flipping” because I’m selling the houses so quickly after acquiring them. Unfortunately, the term “flipping” has recently received a very negative connotation because the media has erroneously created the impression that “flipping” is an illegal activity. Flipping’s not illegal. What IS illegal is the loan fraud that’s committed by some unscrupulous investors.

If anyone knows of a more precise term for what I call “pretty houses”, I’d be interested in expanding my real estate vocabulary.

Best of Success!!

Jim Kennedy,
Houston, TX