<p>Good luck on #8, coralbrook. Sounds like it could be a good deal.</p>
<p>Good luck, coralbrook!</p>
<p>The flooring looks good. Hope the next project reveals itself soon!</p>
<p>House #8 - I cannot believe this but somehow 6 other offers materialized on House #8 yesterday afternoon and another investor offered $30,000 more than my offer. Agent pretty much said that they will take that offer today.</p>
<p>House #9 - There is a townhouse in exact same model for sale two streets up from the remodel that I am doing now. Normally I don’t really have much interest in these types of places because they are not ‘distressed’ enough to have margin to make any kind of profit. But, this place has been on the market now for 3 weeks with no offers. So, I did some detailed due diligence and submitted an offer this afternoon that is about $50k below asking price, but I sent a lot of comps to back up my reason for the price. </p>
<p>Also, I submitted the offer with no agent representation for buyer, I am representing myself. The listing agent tried to tell me that this was not allowed, I had to be represented by him in dual agency. I found the California Realtor form that releases him from any representation and clearly states that it is ‘allowed’. Signed it and submitted it with my offer. This should save the Seller close to $15,000 but I doubt if he is even going to present my offer, the whole commission thing is throwing him for a loop.</p>
<p>coralbrook, are you a real estate agent?</p>
<p>^ You should get a license for cases like this.</p>
<p>When we were buying rentals, DW would be the agent, then after we had an agreement, she would adjust the deal to reduce her commission to zero (no sense paying taxes on your own money) and lowering the sales price by the same amount. The sellers never cared because they got the same amount of money.</p>
<p>I am not a licensed real estate agent. I started studying for the license and then I realized that it might not be a good idea. There is a huge liability as a real estate agent during a transaction. Also, in California a real estate agent has to hang their hat underneath a broker who has a ton of errors/liability insurance. So, even if I was an agent I would have to try to find a broker to work under, and give them a cut of the commission.</p>
<p>I know a lot of competitors that have their license, or pull someone into their organization who has a license to sell the properties. This would definitely save 2-2 1/2% commission, which is a good chunk of profit. But, I am so worried about liability and getting sued. As an agent I would be opening myself up to getting sued by some home buyer at some point, probably for ‘non disclosure’ of something. As a homeowner, selling through an agent, I am limiting my liability from the transaction.</p>
<p>However, I am starting to realize that I just cannot compete with these other guys who are buying/selling with very low commission costs. For example, to sell a $500k property, I could save $12,500 in commission costs. </p>
<p>Another issue about getting a license is that I would have to break my relationship with my agent who has been with me for over 5 years. She really hustles for me… for example if I find something she will do a detailed comparable analysis within a couple of hours and tell me what she thinks we can sell for after the remodel. We are talking and strategizing almost every day. I have developed enough experience that I can do that myself also, but I like a second opinion. Also, she has given me full access to the MLS as her ‘assistant’. I cannot do any research without access to the MLS. I’d have to find a way to get full access to MLS if I break my relationship with her.</p>
<p>It’s a decision I struggle with every single time I make an offer on the property. In some cases, I could probably get an acceptance on my offer if I promise to give the listing agent of the distressed property the future sale.</p>
<p>Notrichenough,
If your bamboo flooring is still in good condition, you are very lucky. When bamboo floors first came out, the quality of the flooring was very iffy. It was manufactured overseas and had a couple of years of major issues. So, if you purchased it 13 years ago and you still have good floors, you are very lucky.</p>
<p>I’m not sure if bamboo floors can be ‘refinished’ if you need to put a new seal on them. Engineered wood floors can be sanded (usually only once), depending on the millimeter of real wood on the top. I’ve got Merbau engineered floors in my house (dark floor) and after 10 years I am now going to need a sanding and refinish. A dust/mess nightmare in a house you are trying to live in 
</p>
<p>
When we got the bamboo they told us it could be refinished. My flooring is made from three layers of thin strips that are glued and compressed together, like in this picture:</p>
<p><a href=“https://lh3.googleusercontent.com/NWrjudXtAuoLjLPkLYqFJcZ0CZ7XLiLfYpbkZzI2oaId5dyUyHbL2C-RsEewIqrsb1Mpj6gb9-KVAuPJGYrM8rfAOeAFTwQV9fq2CX-l4aSEgXQ9W1Zj-02T”>https://lh3.googleusercontent.com/NWrjudXtAuoLjLPkLYqFJcZ0CZ7XLiLfYpbkZzI2oaId5dyUyHbL2C-RsEewIqrsb1Mpj6gb9-KVAuPJGYrM8rfAOeAFTwQV9fq2CX-l4aSEgXQ9W1Zj-02T</a></p>
<p>so I don’t see any reason we couldn’t sand them, as long as we don’t go completely through the first layer. The strand style you are using seems like it should be sandable too.</p>
<p>I guess we got lucky, other than one plank ours has held up pretty well.</p>
<p>
</p>
<p>The rooms must be the size of closets…</p>
<p>The new floor looks great. A huge improvement!</p>
<p>If the new place is the same floor plan can you save time and money by basically just doing the same thing again or is that bad?</p>
<p>Yes, I was able to make a strong offer on this one because I know exactly what is under the covers and I could make same changes to kitchen layout. So I know exact costs. However I would probably change finishes such as kitchen cabinets because this owner’s taste is a little specific. She’s doing high gloss very contemporary cabinets. I personally don’t think its going to look good with her flooring choice because the flooring is a medium brown tone which is not contemporary style. Also, she spent high on floating bath vanities </p>
<p>Lots of progress on the remodel this week. Flooring is going in, but it’s kind of slow. They had to spend an entire day grinding the concrete floors and then pouring some self-leveling cement. Then it turns out there were loose plywood boards and a big squeak upstairs. We pulled up the plywood subfloor and found that the original builder never really nailed the metal hanger for one of the floor joists. So we had to renail the floor joist properly and then nail down the plywood sub floor. The room was still not level, so more of that expensive floor leveling cement stuff that takes another day to dry.</p>
<p>I learned one thing… One bag of leveling cement at Dixieline $50 (only place open on Saturday when we needed it). One bag of leveling cement at concrete wholesale place $25 on Tuesday. Big difference. </p>
<p>In general I have found that Dixieline is the most expensive place to buy ANYTHING!!, but the only place to buy large lumber and beams. Example… got stuck picking up some drywall there last week in an emergency (closest to our project) and it was $12/sheet. It’s only $9.50 a sheet at Home Depot. </p>
<p>Another thing I know from experience is that old school general contractors ONLY shop at Dixieline because they have special contractor desks and offices with donuts and coffee. They stand around in the morning and gossip with each other and the clerks. Also, Dixieline has a good delivery service for the contractors for large loads of lumber. In other words, homeowners are usually eating the high cost of Dixieline materials because general contractors want to shop at Dixieline, have someone else load all the stuff and deliver it for them. </p>
<p>I learned another thing about Dixieline a long time ago. I have to go there when I need special lumber, headers or beams. They will put the stuff in the truck for customers but they have a policy that they refuse to tie it down. So, I have to try to get up into the truck bed and tie a bunch of granny knots around all the lumber by myself. The guys at Lowe’s will help but don’t know how to do it (young kids) but the young guys at Home Depot are usually very nice about helping me tie down the load.</p>
<p>The giant truckload of IKEA kitchen cabinets arrived today and there are literally a hundred boxes stacked all over living room. We finished all the drywall preparation, ceiling paint and primer on walls. It is just frustrating how long it takes to finish new drywall to the point of being able to install the cabinets. </p>
<p>We are creating a massive assembly line to assemble all this stuff. Took about 3 hours to measure out the walls and get the upper cabinet railing installed perfectly. They have a rail system, you install one rail at top of wall and then all the cabinets hang on them. After the 3 hours we have the first corner upper cabinet installed and two others assembled and ready to go. Hopefully it goes much faster after this </p>
<p>
</p>
<p>I wonder if there is some sort of arrangement you can make with her that will make you more competitive. I have no idea what it would be, but it certainly would be to your advantage. </p>
<p>Could she become your employee, for a fixed monthly amount? She might find it advantageous too, since the way you two are working now, even after she does all her research, your deal might fall through. If she were on a monthly retainer or salary, she’d be paid for her time. If you can build in the expense of using her in your buying and selling formulas, it might work out for you.</p>
<p>I’m just throwing this out there. I hate to see you disadvantaged when it comes to buying the properties in the first place. It seems like it’s not a level playing field.</p>
<p>Just because you get a license doesn’t mean you can’t use your current agent on the sell side.</p>
<p>It could save you money on the buy side, though.</p>
<p>
If an agent is doing something unethical (and maybe illegal) like this, there’s no reason for you not to play dirty pool as well. Strongly hint they’ll get the listing, and then change your mind when it comes time to sell.</p>
<p>My husband has renovated several homes, actually doing the drywall (and taping/mud) himself. Now it has been several years, but he learned to buy different varieties of the drywall mud (he would buy powder and mix it up himself). He knew that there were times when he wanted the longer drying times, but also preferred the shorter drying times when doing those in-between layers. I assume this stuff is still on the market…</p>
<p>Here’s a tip for the drywall (similar to BuckeyeatHeart) that I learned from a pro. You start taping the joints with the 20 minute mud that comes in a bag. It dries faster. Then do the 2nd coat with the 20 minute mud. But the final coat has to be the real stuff (usually comes premixed in a box) because it has the best finish for the final sanding and texture. You get poor results if you use the hot/fast stuff for final coat.</p>
<p>I have had a serious discussion with my agent regarding trying to get this next property. </p>
<p>First, she has agreed to lower her commission on the sale. She is willing to drop it 1% for properties with future sale price higher than $500,000 and she’s going to drop 1/2% for lower priced properties. </p>
<p>Next, I came up with a brilliant strategy for buying properties. In the cases where the listing agent is not giving me the time of day or I don’t think that the listing agent and/or my offer gives me an advantage… I am going to make my offer representing myself. Many listing agents have been trying to tell me that it isn’t allowed, but it definitely is. My agent found the form that needs to be filled out that releases the listing agent from any ‘liability’ to represent me and clearly states that I am representing myself. This saves the Seller a full side of the commission, sometimes up to 3% which is thousands of dollars. That means I can make my offer lower in purchase price but much more attractive in net gain to the Seller!!! </p>
<p>I submitted my first one to the listing agent for the La Jolla Townhouse (who kept trying to tell me it wasn’t allowed, but finally called me back and said his Broker said it was OK). We will see. On this House #9 the listing agent told me that the sellers are from another area of the state, they had bought the place for potential retirement, but they have changed their plans and just want to get rid of the property. But, of course he cannot ‘find’ them right now Read… he’s stalling to see if they are going to get any other offers. I bet I don’t hear from him until next week as they try to give it another weekend to see if they get some buyers.</p>
<p>House #10
Oh boy, this one’s a doozy… I’m going to give the address here because you have to go to Zillow and look at the pictures</p>
<p>2017 Guizot, San Diego, 92107</p>
<p>This went up for sale last night. I spent all day trying to get the Listing Agent on the phone and have received no answer from my voice mails, emails or texts. Finally got his ‘assistant’ on the phone who said they have had a lot of calls. He promised to get back to me on whether the Listing Agent would represent me and give me a code to get into the house (I don’t have real estate agent key card). Never heard back from him.</p>
<p>So, I went to the house and inspected around the perimeter. I was surprised that there was only one other investor snooping the property, usually there are a lot. I called my agent and she did some magic on her phone that gave me an instant numerical code to get in. What a mistake!!! Hoarding really bad, decaying food and my carpenter swears that someone died in there because it just stinks of rotting something. I did not look very closely. Garage is boarded up, I can only imagine what will come tumbling out of that when we pry the door open </p>
<p>But, I am going to go after this one strong, really really strong. The listing agent made a huge mistake by not showing pictures of the views from this home. Views to the north, views to the West, views to the Southwest. All ocean, Mission Bay, PB Pier, OB Pier, you name it. Incredible views. This house is going to fly off the shelf. It is listed way too low right now, I guess they are trying to get a huge bidding war going.</p>
<p>It has some drawbacks, it’s small, no yard and garage is below the house. And, can you imagine the cost to clear out that stuff??? But none of that matters because the views will sell it</p>
<p>Wow, those Zillow pictures don’t do the seller any favors. Why not show the view? Pictures of mess do not inspire most people. Hope this one works out for you, coralbrook</p>