In today’s episode, Brian and John share their story about a rehab that they did in Grove City. Dubbed the “tire house” because of how messy it was, including having about sixty tires in the backyard, this property is probably the most disgusting project that the guys have taken on. John begins the discussion by talking about the landlord receiving a mailer and deciding to give the guys a call after a few months. The tenants, who knew the landlord, were still living there at first so we hear about how Brian and John were lucky that the tenants moved out quickly. The guys also tell us about the budget they had and how much they earned in the flip.
Comment below and let us know what you think about today's episode and don't forget to rate us on iTunes!
This Episode is Sponsored by
Core Rentals offers full service, residential property management in Columbus, Ohio and surrounding areas. They are equipped to handle single-family and multi-family homes. Visit CoreRentalsOhio.com today to have the day-to-day operations of your rental property handled by professionals.
Covered Topics:
- The types of mailers that Brian and John send out.
- The terrible initial state of the “tire house” and its rehab process.
- Different options offered by hard money lenders.
Show Notes:
- 00:53 – What’s been happening this week.
- Getting close to finishing a few rehabs.
- Looking at expanding into new markets in Ohio and beyond.
- Paying staff a quarterly bonus.
- 04:29 – Buying the “tire house.”
- Receiving a call from the seller after he got a mailer.
- The shocking state of the house described by Brian and John’s acquisition manager at the time.
- Budgeting for the rehab and giving notice to the tenants.
- 08:53 – Rehabbing the house.
- Brian’s recollection of his first visit to the property.
- Converting the garage, which had been used as a living space, back to a garage.
- The lack of quality on the siding installation.
- Creating a half-bathroom in the basement.
- 14:13 – The lending method used for this property.
- The BPO program offered by hard money lenders.
- An explanation of percentage points that are paid on loans.
- 16:55 – Closing thoughts.
- Bringing up the value of the neighborhood.
Topic Takeaways
- Landlords should inspect their properties regularly.
- A city inspector is useful for helping you catch corner-cutting.
- The BPO program is simple and saves money on appraisals.
Tweetable Quotes
“It’s not about houses, it’s about people. Yes, we’re in real estate, we’re buying houses, but it’s about dealing with people.” (Tweet This!)
“Don’t get discouraged if you send out a bunch of mailers and you don’t hear something right away, because it’s something that people will hold on to and they’ll call you when they’re ready to sell.” (Tweet This!)
“When I get there, there’s no one around, the front door is swinging wide open, I just walk in and I’m like ‘no wonder they left it open. As soon as anyone walks in, they’re going to walk right back out’ because it smelled horrible.” (Tweet This!)
