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  • E. Single Family Rehab Case Study 3

    This is a case study of a single family deal that I purchased with cash early this month.  I’ve completed the rehab and there’s currently a lease pending on it.  The case study walks you through the deal and rehab step by step.  Enjoy!

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    Comments (25 comments so far)

    1. Hey Dude,

      Yes, it has been a long time since your last Case Study.

      I appreciate your time doing these Case Studies, THANKS 🙂

      And, of course, your Rehab Valuator is “The Bomb!”

      Richard B Maselow, CPA
      5101 Balboa Boulevard, Suite 117
      Encino, CA 91316.2731
      Win-Win Real Estate Solutions, LLC
      http://Win-WinRealEstateSolutionsBargainHouses.com
      Smartcard@Earthlink.net
      818.981.9748

    2. Danill, this tool and also your rental valuator software has made number crunching less confusing for me. They (these software packages) have enabled me to present my properties and numbers to other investor, lenders,agents,buyer and sellers professionally. I definitely recommend anyone in the purchasing side of real estate to atleast take a look at this video.

      Ceno Wilson Managing partner
      Wilson Real Estate Investment, LLC.
      http://wilsoninvestmentpropertiessells.com/
      http://wilsonrealestateinvestment.com/
      704-469-2843

    3. HI There, My first question is – where are you finding cash-out refinancing for investor property? My lender tells me it can’t be done. This would really be helpful for a couple of my properties.


    4. Daniil

      Mark – all my banks that provide cash out refinancing are local community banks that do “portfolio lending”. That means they don’t sell their loans off after they issue them, which means these loans don’t have to conform to Fannie and Freddie guidelines. That also means these banks can essentially dictate their own lending criteria, which allows them to do cash-outs.

      Look up some of the smaller, local banks in your area- I guarantee there’s a bunch of them no matter where you live.


    5. Rob

      Hello Danill,

      I discovered your website after having spent months creating my own systems with some of the same information. I wish I found your software before i got into creating my own (in google docs)…

      I wanted to ask if and how you avoid being considered a dealer for purposes of buying/flipping/selling multiple real estate properties. It appears that if you are in certain states (CA), you can be taxed up to 55% or more of your profits…

      Also- Do you provide 1 on 1 phone consultations for a charge?

      Thanks and gd bless you for all of your work


      • Daniil

        Rob – I rarely flip houses. Most of the time I hold them so I don’t usually run into the dealer rule. As far as I know, if you hold a house for less than a year before flipping it you will be charged your regular tax rate. But I’m not an accountant so you should definitely consult a profession in your state!

        And yes, i do provide phone consultations. Shoot me an email at daniil [at] rehabvaluator.com and let me know what you need help with. I want to make sure I can actually help you before charging you money 🙂


    6. Jerry DeCouto

      I’m so impressed with this software especially after hearing investors try to crunch the numbers manually…like you say…it’s a no brainer!


    7. Zeke

      Great content. I will get this as soon as possible.Thanks for the case study. Very informative.


    8. Jim Bosi

      Another outstanding video! I downloaded the free a version a few weeks ago and have been using it to evaluate several properties. My first impression was the free version would be more than adequate. However, the videos demonstrated how much more value is provided by the premium version. Thank you for developing and sharing a great product.

    9. Hi Dannil,
      Silvino here, very cool and essential tool for the real state business, Thanks a lot for your time, I am a tile contractor and painter and kind of handy man, always dreaming to become a real state investor in my free time, I am trying to learn as much as possible. so, yes I want to part of your class, and for the 97 bucks, dont you worry I ‘ll send you a money order. thanks again.


    10. Michelle

      Just wondering why you always get rid of oil and gas at your rehabs. I can see why you’d want to get rid of the oil (leaky tanks = environmental hazard). But why do you get rid of gas? Do you replace gas furnaces with new electric ones even if the gas one still works?


      • Daniil

        Hi Michelle. From my experience, tenants don’t like to pay the oil or the gas heating bills. They prefer electric in my area. Also, most gas furnaces I have encountered, even if they are on the newer side, still present major maintenance issues in the first few years after me purchasing the house. So I prefer to install brand new HVAC systems where the deal allows it.


    11. steve

      Awesome Daniil !!!!!!

      I own a piece of investment property now and was not sure what to do with it to move forward. Now i have the tool to actually analyze it properly and can now make a decision confidently and profitably.
      Thank you
      Steve


    12. BK WILLIAMS

      HEY DANIEL,

      GREAT INFO. I REALLY APPRECIATE YOUR WORK. I WANT TO LEARN HOW TO FIND AND BUY PROPERTY.

    13. Hi Daniil,
      Silvino Camacho here, really cool man, I am trying to learn as much as I can. thank you.!


    14. Dee

      Great cash study, Where can I find REO list?

    15. I have enjoyed the videos so far. Tell me if you have any updated info as the market has really changed since 2011! I would really be interested in your new evaluations of the market and if the software has changed. Thanks Daniil and keep sending these case studies. (I am a wholesaler who has the buyers and am looking for wholesalers who have the properties.)

      Richard


    16. Joseph Estevez

      After looking at your rehabs… I got 2-properties available
      for rehab. One of the problem that I’m having is financing
      the deals in Los Angeles, California.

      I can only get 65-70% to do the deals. The remaining
      30-35% I need to bring in. Getting a gap funding or
      equity partner is what I need.

      Can you help?


      • Daniil

        Hi Joseph. Unfortunately we’re only doing deals and have the contacts for that kind of thing here in Virginia. Best of luck to you though. I know that in those markets where real estate is at a premium that finding funding can be a challenge. Just make sure and keep trying and don’t give up. Tap your local REI groups and your network to find the additional funding you need and get that deal done.


    17. Wayne

      Hello Daniil,

      Thank you for making this so simple that my kids can understand the process.

      On the Private Funding Request (Refi and Hold) page, how do I get the information for the Closing Cost, Total Funds Needed and Total Loan Amount to display?

      How do you determine the interest rate you would pay to a private lender and have that information displayed also on this page?

      Since the property is not renovated the pictures would be of the before condition?

      Thank you again,

      Wayne


      • Jacob

        Hi Wayne,

        Thanks for the question! First off the Private Funding Request reports are to request financing. Therefore, on the Rehab & Flip or Hold Analysis page you have to have select “Financing” under the financing assumptions. The same idea applies to closing costs. You have to select Financing under financing assumptions and then below the closing costs on the Rehab & Flip or Hold Analysis page you’ll have the option to include those costs in the loan. All of those things have to happen for those costs to show up on the report.

        Second, in regards to the interest rate, that is completely negotiable. Some lenders have set rates. Others will work with you. Start off by requesting a fair but low rate so you have a place to negotiate from. That rate will show up on the Private Lender Funding Request report once you select “financing” under financing assumptions on the Rehab & Flip or Hold Analysis tab.

        If you have further questions email us at support@rehabvaluator.com


    18. Ed

      Great presentation and information for those starting out in the business needing lenders. I’ve been doing this rehab business for over 30 years and I must admit you have a very good presentation with good information forms. However, every house can’t be a winner, as we have experienced. We only buy foreclosures at courthouses so an interior inspection is not always an option, but a gamble.

      Here’s one question for you: What commissions do you pay your agents or is it on a sliding scale commensurate with the RORI or profit? I’m a Broker, but still list properties with other agents because our time is better spent finding and remodeling houses.

      Here’s a second question for you. In the remodeling business it’s extremely hard to keep good workers and keep costs down so what method of costs controls do you use in your business? Is your costs based on average costs in industry and get bids or do you use only contractors?

      Good luck to all of you. It’s a great business but only volume and experience improves the bottom line.


      • Daniil

        Hi Ed,

        Not sure how to answer your first question – I am not an agent nor a broker. If I ever bid on an agent-listed MLS property, I try to do so without a buyer’s agent. In other words I offer the entire commission to the listing agent in hopes that they’ll be more incentivized to deal with me and take my offer to the seller.

        As for my construction projects, I sub-contract out everything but I rarely let my contractors provide materials. I usually source materials myself and get multiple bids on both materials and labor. I like to do business with the same people but I don’t let them get too comfortable and raise prices – that’s why I always get bids against them no matter how long we’ve been working together.

        Hope that answers your questions!

        Daniil Kleyman
        True Vision Analytics, LLC


    19. Dawk

      when will the hard copy as shown( box with back up cd ) arrive or will it ?


      • Jacob

        Hi,

        There is not a hard copy/CD that will be shipped to you. All of our programs and materials are available digitally only. If you have any questions feel free to email us at support@rehabvaluator.com