Transcript (May have errors):
All right. So, we’re talking about rehab of the night which is an exit strategy right. Well we need really is buying strategy marketing right now. Right. And we have covered that. This is exit right. What do you on the back and how do we save money. Rehab so long. So hopefully you guys will learn a little bit. So, we’ll get into some simple stuff in work. Is a little bit more things that you guys might not be thinking about? But it’s simple is you know things we should know for example why I had a girl come to me. last week. I wanted to this dream home. This is what I’ve been dreaming about. It’s on the market down another and it’s a four hundred and eighty thousand dollars. Please do it with me.
What do you think I felt like? Run! Run! That’s not property is not your home, right?
Can you imagine going into partnership with somebody that’s going to do their dream home. Dream home dream home. I get it toilet it down every Costco day you know dreams every day. I’m telling you right now you know dream happiness I figured right. Right. So, it’s not your home right. We obviously need help. We need lots of help. We do rehab. What kind of help do we need? Contracting help, right. What else. Money? Absolutely. Obviously. we need a lot of your ARV in your budget. Is that the most important thing you’re looking at this. What’s the most important thing. They’re all important right. They nothing more important that. You’re after repair value. I’ve got that right. I know what I’m buying for, I know what it’s budgets for. I can make a lot of mistakes. You are going to make a lot of mistakes. Ask me how I know this. I meant a lot. Even though we’re not fond of the human. I look back and she never put something like that get. her again. The important stuff I write contractor is simple right. We don’t. I don’t permit everything. I don’t do that. I probably to a fault. That’s how you guys got do permits because you get yourself in trouble. Ask me on this day a travel speech so you can. But I usually will. For me the important thing sometimes I’ll skate on a few things. But again, that for me. no going to market the property OK. Sometimes you market it too fast in this market. You can do that. So, in other words I will put this thing I hope put aside the automotive start to advertise this thing I haven’t finished yet. I could do that. Far. All right. If it’s a down market. Oh no no no.
[00:02:57] You only get one shot. People that are in the market it has got to be ready to go. All right. So, we got to know what our different markets are and how we’re going to market. We’re going to market the product to market as soon as we can. All right. We’ve got to get out of this thing. Knowing your cost and selling costs so this is where a lot of people think actually this is where most you don’t know how much until I knew people that don’t get any training they don’t know how much it costs to sell a house and how much their only cost is they go Wow I could buy their house for this is what you see right away when you get your when you get your wholesale guys that are you they saw podcasting you get e-mail from them. They’re selling the house for two hundred twenty thousand and it’s worth to 68 ARV and they go Wow It’s frigging great. You can buy this house you know. Guess what. They don’t know. They don’t know how much costs alone do. They’re just telling you, but they don’t know how much. A lot of people do not know. They think it’s a deal and that’s our biggest problem in this market is people that think a deal is a deal number one. One hundred percent. That right there is worth the price of admission to know because you’re dealing with people you’re new and they tell you I’ve got this deal. You remember right here said Don’t break it. All of them offer to cheat because a lot of times they think they got a deal a lot because they don’t know what their exact holding and closing and selling costs is.
Five houses. Two hundred thousand dollars and it takes me five six months to sell it from top to bottom.
My only costs are going to be 15 grands. They don’t know that. my or my commissions are going to be depending on what you pay. Twelve grands. Right. They don’t think of that. my closing costs are going to be three grands from flying to sell and they don’t think of that. right. My utilities my taxes my termites. Right. What else. My insurance. Insurance. Good luck. Hundreds more than you. What’s that. Beans are my beans or that everybody hit you on the beans right. They made a lot of injuries don’t know.
Injuries was the same provider since they started selling responds the sellers the buyers and sellers every time.
And the seller can see you every time you are selling them or when you rehab a house you are held to a higher standard when somebody buys a house every time they come in with a BINSR want you to fix all this stuff because when you rehab a house in a really believing respectable lifestyle I’m talking myself you’re always. Now you don’t have to face everything in this marketing slot I get away with say look forget it. But a lot of times you go to want to fix a few things and make them happy. So, you’re always going to have a hit on the business. No one thinks of that. No one. Oh, did you wonder when I figured my numbers. I get a two hundred-thousand-dollar house in this market I get my manager at seven hundred and that’s what my number is I’ll spend 700 on this house in enough down market on my name my bills are twelve hundred when I’m figuring my numbers down market unknown a down market. We send money and adventure. See I’m saying no one thinks of that right. That’s why you have so many people in the market that they have to deal that do not have it all over the place. I understand ninety seven percent of the people. OK. All right make sure you’re insured right. OK.
Is different types of insurance and knowledge you think about that. Obviously, it’s boring. But we’ve got to be insured right. Got to be flexible. What does that mean. As you get married you get into a rehab you’re going to sometimes you run into things that you weren’t expecting and sometimes you do things that you might not have thought you would do and sometimes you got to spend money. I got into a big rehab big for the rehab and. It’s planning on spending forty thousand dollars. Got in there it was history. We were going to refurbish, and he created this beautiful custom deck recounts, but they were hickory and they looked all right. I was going to paint a white guy in there and gators could not pay here had to be flexible. I’m like OK throw all that stuff away that we’re doing I’m going to redo this kitchen oh money right. Because I just figured that this is too much money to be playing with I gotta take less on my margins and puts more money into this kitchen to get out of say. So, I’m saying that’s what I’m talking about. I say flexible but flexible. You got a change you got might have to spend money take less money. That’s the main thing. Don’t be fooled. It’s not easy right. FLATOW Yeah. Are you enough.
Seven stages. Right. Obviously, we’re going to create a plan and we create a plan. We’re going to try to understand what we’re going to have to lay off the property right. But the most important thing is in this list. What do you think it is?
We think the most important thing in this list is creating still more. Did that plan a contractor scope or. He’s got it. You know we could hire a contractor.
I mean obviously you’re going to hire contractors but you’re not going to know how to be that contractor. So, we’re going to tie that contractor down with the contract. and we’re going to let our paperwork control right by contractors even good ones that you’ve done good in the past to really turn it into Badlands later. Contracts have a lifespan that’s behind that. All right. Manage the rehab walking through inspection vital payments staging. Obviously is our last and foremost about the scope of work. The scope of work is like a screenplay to. Yes. You don’t even realize how to get screenplays words or resolved. I’m all. I did not realize that fan screenplays. They tell you you know how your movie your move your head this way moves your head up and involve quite a bit. You know what I’m saying. I mean they’re really really a lot of screenplays really in depth. That’s what our script work is. It must spell it out. And when you have that right we can move. We can move pretty good. All right. Yes. We should bring this stuff to a rehab especially a crowbar. Right. In the beginning now, I forget that a lot. That’s why I imagine that that’s the time to do it. So, we want to bring our estimate of sheets our check less of course the lock-box is the one I always remember. Which is good a copy is key. Sometimes I read that sometimes I don’t have to worry about a camera anymore.
You got it on his right. OK. Right. We’re walking to every. What’s the main thing that we’re looking at. The layout the layout will kill you lay off. You’ll find to some that. houses. a lot of houses have issues all right. And the square footage and those additions are worth half as much as the straight square footage of a house you have in Arizona a room in the back. Your wholesalers and your people say look it’s got eighteen hundred square feet. It’s wow. But the layout is 90 it so it doesn’t help that room helps. And through the years this is my own. This is my own experience and you guys can learn from this experience through the years. I came up with a number and I figured it out and was through the hard years through both due to low years I should say Work hard years the low years is when I got a lot of house in Arizona. And I figured out that I started hitting after a bunch of loss. I started getting my rooms at 50 cents on the dollar 50 cents per square foot on a dollar. So, I had a home that was worth one hundred dollars a square foot. I took the square footage on an Arizona roll and hit that it was over 50 0 square foot subtracted or added but subtracted how I could do it. You know what I’m saying right.
All right. So that’s importance of the root the layout I cannot tell you how important layout is. You can have as you Charles if it’s compartmentalized. It’s hard to do anything with it. It doesn’t have the value is a lot of other house you can see the flow of the house. I just can’t explain to you how important it is. I learned how hard. Knowing your buyer or knowing how you do have a problem how are you going to say how are you going to present the house. So, you’re going to have houses with problems you’re going to say well I’ve got this room back here. Let’s make that an office right. How am I going to work this this was a bedroom? It’s a weird looking room. We can do something else whether we can present it as an office or something to that effect or maybe we want to turn it into a bedroom. It was an office. So, knowing what our buyers and how we’re going to sell our problem child because that’s what you to happen is very very important. You’re starting to realize you might think not hanging out. Yes yes. It’s all elementary right. But it’s reminding you maybe maybe bringing you some things you didn’t think about. OK tough. Houses two veterans or less small houses those are tough. He’s got one right now. We could add square footage to could we add square footage in 2009.
There is a price for you price per square foot is high enough that we can add. If I could add square footage at eighty dollars a square foot and my price per square foot 120 or add up I could do it right. Well it was at 120 it up in 2009. It was gone. 70 average as low as 50 sometime so we couldn’t ask for it back then. So, we could take two-bedroom houses, but we got to understand that if we can’t if you’re not in an area on a two-bedroom house where you price a square price per square foot blocks not obviously you stay away and be careful with those. You can do two bedrooms in 55 and over communities where there are two bedrooms. Very well exactly right. So, knowing your market knowing what you’re doing and how you look at it you look at it. Two-bedroom houses where families are moving in three and four- and five-bedroom houses and the square footage is a love. You’re in trouble. Tell me right now. No one wants these houses. You will see them all the time. See them all down. Eight hundred ninety-two houses in the Middle East Side would be better buying cheap. It’s all right it’s a busy street. Oh my God. Somebody is straight. Hey busy streets. getting good deals on busy streets. You’re on your days on market could be a little bit longer. I’ve had so many have flooded the streets names.
Yes you know you got a life right. It’s the bottom line. You know hopefully mitigate the noise. I mean I know its war zone bad locations I could work in this market now. You know you want to be in those markets in those areas and down markets low ceilings. Oh my God is there a low ceiling. Oh my. That’s storage. Be careful that you’ll walk in some of these houses you have seven-foot ceilings when you go into a different room. The guy put it in himself and he goes to six for. several hundred square foot out. I don’t see my six my I mean Zeeland right here. He built it himself right. Stay away from. So, it’s no corporate right. Oh my God. That’s the best we don’t do housing to solve our foresee problems if it doesn’t have a pockmarked one. I tell you my famous story and I struggle with many houses without our records. But my famous one is I’m not doing a carport. This is my last one. I’m doing well. I’ve got. Fifteen hundred Sheriff White House. hundred thirty thousand dollars. I bought it for seventy-five. I’m talking 2012 at this at Camino Sago and Broadway. Now I’m going to be a delegation. Very good location right. Right around the park. There you are. I got this. I got it. This is the house that I don’t have to do a car for. This is it. If anyone ever saw a house this is it.
I Good says. Couldn’t sell.
So anyway the average days on market in that time frame was probably 60 days. I was running into 90 days on this. This is rehab so my average days on market 60 on a rehab I should get forty-five. Now these are all obvious Excel buy a second sell at 20. But I’m just saying we want our averages to be lower than the average because asked rehab has asked good but ask is the one that they want. Or some might be price. We don’t in a down market we want to price a little bit lower in that market we can price it right. We got the one they want. So, I am having two days a heart at 60 I want to be afforded it. That makes sense. I’m running into nine units. All right fine man gave up got took whatever offer went lower. We can offer made the deal and went out to give my lockbox. They were looking for fraud in the house. So that’s the last time the last the first day first day they owned the house, but the car bought it. We got a lot of locks. I don’t know. Hey everybody. You know I was in a lockbox and I wish not to put card cardboard into. my. neighbors and oh my God. I mean you run running this Rob Lamberts who doesn’t know what the planets are about. Beverly Hillbillies is. They lived in Beverly Hills and they were lax. They were the neighbors have it all right. Bad renovation. Obviously, that’s self-explanatory right. I mean you’ve had a bad renovation. I’ve heard that too that about Capello. I didn’t know anything. OK. Still more misery map like the screenplay is to the movie right. I’m emphasizing the scope of the work. detail description needed right. I mean this is simple. We want the lumen on this too much. We’ve got to create a visual of the finished house. Right. We got to convey this to the contractor right. We’ve got to walk through the sculpture work. Why is why are we doing a script work by the way less arguments. Right. So.
The contractor has their own agendas right.
We have all images is two separate guys. This is to make money. He doesn’t give a shit or just make money. We give a lot of shit right. Because he’d get paid. We might act right. We might not.
So that’s still a work in our pay for controls all that Rob Lowe knocks it right out knocks it right out.
Hiring contractors. This is you know anybody want to add a Craigslist right whatever we’ve got we’re got we’ve got to do when we’re hiring contractors. We’re trying to find and by the way one thing that a lot of people don’t do is go to the counters at Home Depot. You know the contractors you go to talk to those protests at Home Depot and you ask those guys if you need an if you need a real good general contractor maybe a major league project where you get a whole lot of promise. You go down to go down to the county ask this guy. You know those guys work with those contractors every day and they know the guys that out there high and taking off their shoes and they come in they have got this nice sunset all this they are all organized right. And then they know the guys that come in. Oh yeah, I think I had it there. You know they know those guys too. Right. It’s not hard for them to know who’s right guys. And that goes unnoticed. I mean just be aware of that. So. But we’re also we’re also. we’re also going to control this contract with our paperwork and we’ll get it right. So, you know obviously we want to know about it.
But guess what. A lot of times if you get somebody ready to go in they see good and we don’t know contractors anywhere anyway we do have to depend on ourselves. We do have to depend on ourselves. If you’re out there you got a lot of experience. You’ve done a lot of rehabs you know the people you know that that was all well and good but a lot of times even I get lost in a lot of those guys that these put they’re calling I don’t know where they are. I’ve got their phone numbers your phone doesn’t work. I’ve got everyone’s phone numbers their phones don’t work anymore. I can’t find them. So, they disappear. They come and go. They come and go. So, no one knows what they’re up to. How many people they could pull off course they may not have any employees but how many subcontractors how many guys you know. It’s a big one to know how many guys you got you know all the guys you get my driveway. Oh God. You got to be a plumber. You got this. Obviously, I want to know them too but when I’m looking for somebody a guy I’m looking for a guy that went right through that. Does that work itself.
That’s why I love.
If you hire a general contractor that’s really a good way to go. No problem there. It’s going to be more money because he or he’s running. Right. His license is not working. Guess what. All those guys general contractors’ top guys they want to be their own contract. They want to be their own general and they are already realizing I could do with that guy goes and you’re all over the place these lead guys usually guys and they want to get out and run. Guess what. When they get out on their own they got to work or not. They don’t have up for jobs alone all right. So those guys break out by work and they got their crew they got their guys that they know that they work with over the years and they were good. They know they got the mentality of a general contractor or try and get to be a general contractor need you to work on it. I call on these guys. I’m always looking for those guys. How many guys can you do. How many guys can you put together. How long have you done this? Boom boom boom. Because I know what my numbers are. I know I have a guy in this bar is to take about 30 bucks an hour. Thirty-five. They used to be my second guys and make about twenty twenty-two twenty-three. My third guys they like me my my my lowest guys get to make about 15. How many. How many is that. How much money is at it out right. How many hours a week am I working for it. Now I know my labor costs. I’m trying to quit. So, let’s say my labor costs on a major rehab is twenty-eight hundred a week. Thirty-two hundred a week depending on what I get. Right now, my labor costs are so now I go in and say what’s my labor cost and how many weeks. Well I give you this is six weeks and it’s going to be twenty-four thousand dollars loan.
Well I know you said all around me right. One day. Yes. Working right now.
Is he always good to have four guys. No. He might have six guys here sometimes you might have two guys when you’re doing a for him. But I average it out at four. Typically, you want to average four you get average pretty much it’s not rocket science I should say but you can pretty much every year that I mean you picked up on that what I just said is that’s important that’s important. Most people don’t know that. Would you just want tonight? Most people don’t look at it that way. How do I know this difference I make it up I made it myself? I ask the questions. It’s not hard it’s not hard to make up. But I made it up. I asked questions What would you pay tonight.
How would you pay him now. I started realizing what they do now. Boom boom boom.
Now this market is changing. They want more money and that’s ok that’s ok. We can make more money in this part. We can sell higher. We sell fast, and we get wholesale interest money all over the place. You can make more money. You can on a deal per deal you should make more money in this market. Herbie in down market it’s hard to make money. Tough days on markets are long. not selling properties fast. But you get more deals. So, it’s a six one way half dozen you know pretty much right.
It’s always hard.
So always are you know you go to most these days they’ll tell you that because they’re selling you something right. Not selling you anything. It’s hard.
It’s not selling. OK.
Obviously we want to project ourselves even when we don’t. This is important when we don’t know what we’re doing. Get ahead. We don’t know what we’re doing. You come to network in like this are real lives. Shoot. I got a position myself the right way. Correct. You never come to a meeting like this. You still that we lost. Right now, I can say you know be upset after one week but at least three upsides are. Am I right. I’m going to do that. I’m in business for the long haul. Where you’ve developed a company. OK. good boss makes men realize they have more ability than they think they have so consistently better word than they thought they could. Now why throw that out there. Because when your guys start boy we need to be out there and let them know that they’re buying the stuff that needs to be corrected of course but you emphasize stuff that’s good. You bring them the lunch you bring the firkin coffee whatever. You know you got to be out there making a few rounds. Well I make a lot of my mistakes, but I found out that when I’m not involved these worst things happen when I’m involved I’m out there doing the right things better things happen. Now this is the important part of the whole situation the whole rehab situation which is our important documents because art is important documents control situation. Once we got her so we’re going to put it on paper. I worry as much because I’m going to do it right. Right. So. So when we do our independent contractor agreement it’s going to spell out exactly what their work schedule is. It’s going to spell out what their pay schedule is which is the most important part of the agreement. Of course, the agreement is boilerplate.
You need to do this work V.A. or follow contract. You need to do this. You need to do that, and you need to clean up after the site. You can’t need any trash can. You know it spells out this boilerplate stop but the most important part.
To our agreement is that yes what you don’t get paid until you reach this benchmark you don’t get paid do you reach that benchmark. You get this amount of money when you reach this benchmark let’s set benchmarks. Once you once you double the house after the first week and you started your free bone you get twenty-five hundred. Once you put in your life in plumbing. And I know I get my benchmarks and you start your flooring, but you get this money. So, your benchmarks they must reach to get pay. Most important thing right. Would you agree. Right. What do most people do?
I want half the money up front manuals. I have I have a I have a student in California just gave off four weeks ago.
A contractor fifty-three thousand dollars up front.
And she’s never taught her.
Anything of the sort. Nothing. Did she go out and do the education? Did she do. Did she learn to stop? Did she know. No. She learned what she did to get to do so she got the deal and the nation was on a roll. Just go do it her way right. You said it was a hundred-thousand-dollar rehab in Southern California. You said I need fifty-three thousand to her relative’s money. Eighteen fifty-three thousand dollars.
Gone it’s gone.
It’s a mass right now as we speak. It’s gone. You know I had her. She put in a complaint with it. She didn’t even seem to do anything and I didn’t know that it seemed like that speech went on for like three or four weeks. And that’s it. Did you file a complaint with rice your contract? All nine do you do that. No. Right. So now she’s filed a complaint. That’s by time they catch up with the money early on. So yeah, they’ll put him in jail for a lot less. Who cares about money right. They’ll get him. Are you going to go somewhere? You might get away with it. OK so our contractual agreement is is on our benchmarks and our contract is up most important right. OK. Scope work. Obviously, we talked about that. That’s going to coincide with the contract agreement. Your payment schedule and your benchmarks. Exactly what we’re talking about your indemnification agreement insurance unification agreement. OK. Is it important that they are insured? Do we always get it? Sure sure. But a judgment call is a moderate long term we’re not going to be sure to give you a price. And it’s a risk. There is risk. But I take that risk sometimes. And that’s a telling you to do it obviously the way we want to do it right is we want to make sure they have liability insurance. Or I could put liability insurance on that.
So yeah, they’ll put him in jail for all and all this stuff. But who cares about the money right? Don’t get them. Are you go somewhere might get away with it? Okay. So, our contractor agreement is is our benchmarks and our contractor get it is of most importance, right? Okay, let’s go for work. Obviously, we talked about that that’s going to coincide with the contract agreement your payment scheduling your benchmarks exactly what we’re talking about your identification agreement Insurance indemnification agreement. Okay, is it important that they are insured do we always get an insurer should but hey.
Is it a lot of we’re not going to be sure they give you a good price and it’s a risk, you know, there is risk the top but you know, I take that risk sometimes I’m not saying I’m telling you to do it, but obviously the way we want to do it right is we want to make sure they have liability insurance are I could put liability insurance on that problem? Okay. So, what do you say it? So, you make sure that the contractor has insurance and then usually should the property itself like contractors don’t have insurance tell you right now. Okay. So, your question is do I make sure if they have insurance and I’m telling you many times I do jobs without insurance without their liability insurance which which is is not the best products as you have insurance on the property. I have insurance on the property. But what is it going to cover? I don’t know.
The shit is so so if he’s uninsured one of his workers Falls and cuts his arms on you then. It’s yours, right? It could be not always it’s not always like could be the pounds. You know, there’s I don’t know, you know, there’s a lot of details when you’re talking about something like that.
Didn’t work out that way, you know when you’re talking about law and issues like this. This is tough. But when you’re first starting out, you should have your you should have him a million-dollar insurance.
Okay, this is what I miss all the time. I don’t get my w9s.
Go get my Debbie. Nice finish the job. That’s what they’re gone. Oh my God. Now Jason. I need to go. I need to W naught they don’t want to get you dummy. Nice down upfront anybody to stop. Okay. This is their social security number and they’re they’re giving you their name and address. So, at new you do your books when you finish your books you are you are letting you’re the IRS know that the money that you pay him is his problem not being taxes on that money.
So, they tax him to the W, not right?
So, make sense. So basically, there are 1099 40s. It is secured in the social order as it is. He is here because he is the icon just go on by his person who gave such a personality. He inept numbers is just that basic attacks.
Okay final this is a lot why don’t unconditional waivers and Lead this happened to me one time. Okay. Got through a whole whole deal. I never got the lead waiver is hey, I did all the work. You don’t know any more money more money. I will not want to leave because your property right so I didn’t get to lie in wait. Okay, he came back to me and said, you know what you only like six thousand more dollars on my head. Oh, yeah.
I didn’t realize that you are charging for that. You know, he says I got to move this. I gotta do that. He’s sitting here telling me I didn’t know how to present himself as a hey got charged for that this kind of bullshit. He just realized he so he started bringing up stuff that try to get more money what he tried to do, right?
So anyway, I think about it and I didn’t know I never had this happen to me before and I got the thing in the mail that he was going to put a lien on our problem and I thought why material because I’ve got my contracts done. Right? Right. I’ve got this is my first time it’s my first rodeo. So, I learned the hard way. My contract said right. I’ve got every receipt paper work. Everything was paid it matches up to the contract. We did have a change order. He did get paid a little more money. I had that at all my documents in place, right but you gotta do it’s gone. Right but I didn’t know that I’m supposed to go and get that hammer before it goes too close, right? So, lo and behold I get to the closing table boom $6,000 now my boy
Our streets our secrets Lou Brown Drew is trainee in a class like this but online and invite paperwork I have read if you ever have a lien on the property from the contractor a you get to the closing you can identify the title company and work out the problem with the lane now, I’m supposed Kate make good money. Most people who deserve this is what I want to do. I want to identify you.
Where’s the paperwork they you know, that was title age goes. What do you mean? I said, I’m identify title agency. I want you to hold that big. We’re going to hold one. I’m supposed to hold one one and a third of the money and then I’ll figure this out. I’ll straighten this out because I don’t even know what you’re talking about. Well, you better find out you got to go talk to something like you better ask somebody so they went and they talk they came back to it. You can do that. We must pay for that. Yeah. No, he told me I can do this, right so booms came back. So, I signed all the paperwork so they kept 9 grands out of the deal.
In escrow until I could figure this stuff out. So, get my nine thousand dollars out of the deal. I got paid. I went through all the Motions. We went to restore contractors. I called her a short contractor. We followed claim we went to a hearing and they found out which was up dowsing me that is license that he’s tired anyway, so I don’t want to hurt the guy right now we get in we get into the hearing and he pulls me to the back she pregnant.
Just let me off the hook. It’s okay fine. So, we had to go through the hearing the ask me. Mr. Barr. Do you want to you want to add something to the effect that you want to press charges? I say, you know, we came to a settlement he’s gonna pay me a hundred bucks and we’re done and then the British or contractors’ kind of mad at me because I didn’t want to move forward with it. But I let him off the hook. I wasn’t out for blood. I just wanted my 9 Grand back. Right? So, I went to the back. I didn’t take money problem. So, we let him off plus about that. Okay. So, the point I’m making is that that’s a great thing to do is get your lien waivers and so on change order form for just talk about your final inspection checklist, very important, right our punch list.
Builders risk and make it dwelling insurance.
I don’t need that because like my State Farm covers me through that with your you may be in situations where you do need to get that type of insurance on it. It’s going to be and that my friend is it Anyway? Obviously, we have a lot of suggestions. Whatever you guys were here last time going to class. They want to hear about lease options. We could lease option claps. So, any kind of anything that you guys are going to talk about in future videos. So, to exit strategies marketing anything subjective, so if you choose okay anybody not know what’s up to do is okay. So, if you to existing Morgan’s when I apply property delete a mortgage in place subject to the existing mortgagee mortgage now there is a lot of things to know about that. So, I just didn’t want to be able Drexel because they were on a VA loan on a VA loan. You can take the property Central to and you can you can do a wrap on 722 legal the mirror where they run their route on a VA loan where they cannot enforce the due on sale Falls. So that’s cool. We have a VA loan rap a rap is a form of subjective.
wrap anybody not know what wrap is?
Yeah, it’s because I want repeated you guys all know this but a rat is where I have a loan right have a loan in place. I’m going to wrap my name around that loan but not take the title of the house. Now in Iraq, you can have a second position long. If you’re buying from an if you’re buying from a seller to maybe they want to 10 grand and Regal to take payments under 10 grands. We would wrap the 10 grands less you throughout the existing loan. Now with the rat basically says is that I have not I did not I am not taking title this house until this read upon payment is made. So once my agreed upon payment is made a certain time it can be forever until the loan is paid off. It could be five years. Maybe the guy the seller wants. Well, what if they don’t buy years? Well my rapid say it’s all that make all my paintings were next five years. I’m going to get the title this house. It’s also Without no so you wrap the tile so you’re not on fire. And then you pay that your report whatever you agree to down. You get the title. It’s almost like kind of like a car loan. I guess that’s a wrap and this is a red. All right guys.