Types of Foundations

1. Block

Block foundations, especially where we do business are notorious for having foundation issues. When homes were constructed back in the day with block the walls seem to bow, crack, and shift more than your typical fieldstone wall. This means that foundation companies have to be hired to cure this issue. 

The cost of repairing your foundation can be quite significant. In most cases, you are looking at spending $10,000+ if you are dealing with multiple bowing, cracking, or shifting walls. 

The reason for such a cost is because the foundation company has to excavate next to the house in order to push the wall back straight and then backfill with a gravel mixture. 

There are several methods to repairs a foundation which include beaming the wall or installing a metal plate system. Both are quite common in areas where foundation issues occur. 

2. Poured Concrete - What all new construction homes are built out of

Poured concrete can have the same issues as a block basement and what is extremely important to note is that a poured wall can crack even further after braced. Unlike a block basement, poured walls don’t have mortar joints to take the brute force of the earth pushing against the wall which leads to hairline cracks in your concrete walls. Below is a few pictures for your reference. 

Again, foundation companies can remedy these issues, but it is quite costly. (Below I go over the cost estimate guide) 

3. Fieldstone 

Although fieldstone foundations are considered ancient in today’s standard of construction, they are some of the best-constructed foundations in history. Back in the early 1900s, the idea was to build thick solid foundations that would stand the test of time. In most cases, the old fieldstone walls are 14-20 inches thick of rocks, gravel, and mortar. However, back in the day, most masons did not account for the fact the ground would shift during the warm & cold months. Leading to the older construction homes to have some slope in the floors which is fairly common in any home 80-90+ years old. 

Foundation Summary: 

The age of the house will determine whether the house has a stone, block, or poured concrete foundation. Today, the standard is poured concrete, but when houses were constructed 100+ years ago fieldstone was the way to go. 

Be sure when you are walking through a property where there is a basement that you look at every wall closely. If the wall seems to be bowing, pushing, or cracking you will want to budget for a foundation repair. 

Most foundation inspectors will make the recommendation for excavating next to your foundation wall if it is bowed more than 1 inch. If it is less than that, they can typically brace the wall or use the ground anchor system. 

When we are evaluating deals, I typically estimate $5,000 PER foundation wall. So on a standard house where the entire foundation is bad, you can estimate at least $20,000 in repairs. 

If you are unsure on the cost of a foundation repair, reach out to a local foundation company and get an estimate! They will teach you all the information you need to learn. 

Selling a House that's Out Dated

 If you have ever walked into Grandma or Granpa's house and thought..."how can they live here?" then you will know exactly where I am coming from. Years ago I walked into a house that a lady built back in 1977. She was meticulous about cleaning and preparing things so the house was in pristine condition. 

But, You Should Have Seen the Carpet...

I walked in and was instantly greeted by the original 1977 construction. The same avocado green carpeting was lying throughout the living room with the orange carpeting in the kitchen and bathroom. She had kept up the house so well that it didn't show it's age besides the cosmetics. 

So what do you do in a situation like that when it comes time to sell? Well, my opinion would be to either list it on the market and try to find someone wanting a project, or to sell to a real estate investor. 

The first option of using a Realtor will give you the most amount of money. But, the tough part about selling a property like that is the individual needs to have $30,000-$50,000 saved to stick into the house. The renovation will cost a significant amount of money & unless they are well-capitalized it might be more than they are anticipating. 

If you own an outdated property and need to sell feel free to visit us online or give us a call 920-215-4201

How Long Does it Take to Clean Out a Property

When we purchase property from individual owners there is a good chance that most of the items will remain in the house. For whatever reason, people do not like to take a lot of stuff with them & accumulate a bunch of junk over the 5,10,15 years that they have lived in the house. So how do we mitigate this? Well, we have to offer a bit lower to account for the trash removal process & dumpsters needed. 

The average cost for us to get a 30 yard dumpster is about $450 when it is completely full. Depending upon the size of the items left behind a 30 yard dumpster can be completely full in 1 days worth of work. So how do we determine how many dumpsters a property will need? 

A general rule of thumb is for a light trash out of a 1000 sq ft house and some of a garage you will fill 1 30 yard dumpster. Then you will most likely want to order another 20-yard dumpster for your contractors to use during the remodeling process. A 20 yard dumpster should be sufficient for any scrap material leftover or misc. items being removed from the house. 

Depending upon who your dumpster provider is you will want to see how they charge you. If it is a flat cost this next section doesn't matter - but we pay by weight. So when we consider throwing carpeting or other absorbent objects in there we need to make sure no rain is in the forecast. If a full house of carpeting gets soaking wet it'll add $60-75 worth of cost to each dumpster. Over the course of 30-40 houses are year with multiple dumpsters per house that can add up! 

My recommendation would be to talk with the dumpster provider you use & see what they recommend for the amount of stuff if the property. If you have extra room, start cleaning out your personal residence & get rid of the clutter! 

Buy for Cash Flow or Appreciation

This question was most common back in 2006-2007 before the real estate market crashed. Everyone was a house flipper & was able to profit on deals. Values were going up 4-12% in a few months time & you were able to make a quick profit. That is what ultimately lead to the real estate bubble & total economic meltdown of 2009. 

Then the question presents itself, do I buy based on cash flow or appreciation. My recommendation to anyone reading this article is to always buy on cash flow. If you do, then you can typically make it through the rough patches as the property is still producing income & you are able to service the debt. If you buy based upon the value going up over the course of the next 2-3 years you could be in for a rude awakening if the market tanks. 

Cash flow is the one guarantee that you should be able to withstand any sort of economic contraction as long as you have decent tenants who are paying their rent. Establish your criteria you are looking for in properties, identify it, & don't go off the path. It is important to have a game plan in place prior to getting into real estate investing. 

If you need help or have questions on the topic please feel free to contact us! 

What Do I Expect on a Phone Call With a Cash Buyer

You inquired on our site & now you are wondering what to expect... Well, the first thing I would say is make sure to have your phone with you as Carter always tries to reach out right away to chat on the phone. But what will that phone conversation consist of? 

Questions from a Cash Home Buyer

In a typical conversation I like to get an idea of what you are wanting to sell the property. If there is absolutely no motivation to sell & you are just looking to get numbers thrown your way there is a good chance we will not be willing to help with that. Along those lines, it is also important to know why you reached out to a company like ours that buys houses for cash in Appleton WI. 

Typically, most people know that we buy houses companies can't pay retail value for a home in the area. Why is this? It is due to the fact that we need to make some sort of profit & also that we have to typically spend thousands of dollars on remodeling the property. Sure, you can always list it with a Realtor. 

But, then you will deal with 10-20 showings, inspections, repairs, & the list will keep going. 

Another question we like to ask is how did you hear about us. This one is pretty straight forward as we could have either reached out to you directly or you may have been searching for we buy houses Appleton wi. 

How can we help?

Wrapping up this article, a typical phone conversation will last anywhere from 5-15 minutes depending upon the situation. If we can be a resource in selling your Appleton wi house fast for cash please give us a call on our office line 920-215-4201. 

Using a Self Directed IRA to Invest in Real Estate

Something that is rarely talked about at the financial advisor or the brokerage level is the ability to invest in actual real estate with your retirement account. Most brokerage services such as e-trade, or fidelity, or vanguard will not allow you to do it. However, there are "custodian" brokerage services that grant you this ability. 

The custodian is essentially the watcher of your IRA account & they will grant you the permission to invest in an alternative investment other than your typical stock, bond, or mutual fund. It is achievable through the process of rolling over some or all of your IRA into one of their programs. 

Don't worry, if you have a ROTH IRA it will still remain in that category as well as a normal IRA. 

Now, the biggest stipulation with a SDIRA is that it needs to be completely passive or hands-off for your the owner. This means that you can't go buy a vacation house with the money & have it as an AirBNB. You need to invest your money in some sort of real estate asset that is either part of a syndication or that is managed by a property manager & they take care of everything. If the rules are not followed the IRS could target your entire IRA & tax you on the total amount. 

Of course that is the worst-case scenario. But, the reason behind people investing in real estate with their IRA is the following reasons: 

1) Real Estate is a Physical Asset that will NEVER go down to $0 in value

2) In most cases the "right" real estate will outperform the returns of the stock market. 

3) Real Estate appreciates in value over time

4) Rental real estate provides monthly cash flow

If you are wondering how you can diversify your portfolio reach out to us & we can set up a video or phone call. 920-215-4201

Easiest Way to Update a Kitchen or Bath

When you are looking to do the most cost-effective repairs, where do you start? Typically, you will get the highest ROI from kitchen & bathroom remodeling. Those are the two favorite spots for every house! But what is a cost-effective way to make your home stand out?

First things first, what is your budget you are working with to remodel your home? Are you working with $1,000-$5,000 or more? If you are working with the smaller budget then the best thing to do is spruce up, not completely replace.
I would recommend painting your kitchen cabinets, replacing counters, & installing a backsplash. These are all things that you can do on your own that will transform the look of the kitchen!
I wouldn't go overboard with installing quartz or granite counters, I would just go with a nice looking laminate counter that costs $400-$600.

If you wanted to go the extra mile you could even install new flooring in those areas. Flooring is something that may take a professionals help, but normally in small areas, you can get by doing something for fairly cheap. We have had great luck with the luxury vinyl plank floors & that is what I would recommend anyone to do!

If you need assistance or ideas on what to do to spruce up your kitchen please feel free to reach out! We would love to provide you with some FREE resources you can use.

How to Give Tenants A Notice to Vacate - Appleton WI

If you are reading this article you probably own rental property in Appleton WI. As a landlord, it is a never-ending battle on figuring out how to properly give notice to your tenants. From first-hand experience I know what that feels like as we own income property in Appleton. So, in this article I am going to go over a brief summary on how to give tenants a notice to vacate.

How Much Notice Is Needed for Tenants

Depending upon what type of lease you have in place will dictate how you can give a tenant notice to vacate. Are they on an annual lease and locked in for another few months? Or, are they month to month? Tenants automatically go month to month when their lease expires. 

With a tenant who is on an annual lease you WILL NOT be able to give them notice to vacate until their lease expiration. Typically in this scenario you would provide them with a form (months in advance) that states you will not be renewing their lease. Please be curious & give your tenant time. 

On a month to month lease you need to provide at least 28 days written notice. However, if they are already partially through a rental period, you will need to wait till the end of the next period. An example of this is giving a notice to vacate on April 15th. You would provide them the notice on the 15th, but they wouldn't need to move out till May 28th. 

NOTE: Please speak with an attorney regarding the legalities of everything I am providing in this article. I am going off of personal experience & no information provided in fact, only a matter of opinion. 

If you are wanting to sell your property & leave the tenant in place because you don't want to deal with it, please give us a call at 920-215-4201! We are local house buyers and can help you out. 

Difference Between Assessed Value And What You Say Your House is Worth

Assessed value is not the same as market value or appraised value. There are many homes that could be sold for significantly more than an assessed value and others that maybe sold for significantly less. The assessed value of a home is used for the purpose of taxes in your local area. The assessed value of a home is multiplied by the local tax rate to determine what your yearly taxes are. The assessed value has no impact on how much your home is worth to a potential buyer in the marketplace.

Unfortunately, there are many home buyers who believe that a home that is listed higher than the assessed value is overpriced. This is the furthest from the truth. Home buyer’s also question if something is wrong with a home if the list price is much less than the assessed value. There are homeowners who don’t pay attention to their assessed value, just to find out their municipality has been slowly raising it, year after year, even though the market value hasn’t been increasing.

There are a handful of methods that Realtors use to determine the value of a home due to its condition. The most common method to determining the value of a home is by completing a comparative market analysis. A professionally completed “CMA” will consider many features of not only a home, but also the local area and neighborhood. Considerations that a professionally completed “CMA” include:

1. Square footage
2. Number of bedrooms
3. Number of bathrooms
4. Upgrades to kitchen
5. Window quality
6. Roof age
7. Lot features
8. Location primary or neighborhood street
9. Style of residence
10. Flooring type

If you don't want to sell your house through a Realtor and would interested have the process go faster give as a call 920-215-4201

1

What to Ask When Buying a House in Appleton WI

If you are looking to buy a house in the Appleton WI area, there are a couple questions you should be asking. The three that I would recommend would be why are the sellers leaving, what’s the neighborhood like and how old are the appliances and major systems?

Why are the Sellers Leaving?

When looking for a house to buy you should get a good understanding of why the seller is leaving. Weather it’s downsizing, financial problems or a job relocation, this can help you know how motivated the seller is. The more motivated the seller mean that there might be more room for negotiating. A good agent will try and find out this information and will help gauge on how flexible the seller is.

What’s the neighborhood like?

When it comes to picking a good neighborhood, you want to look for affordability, good schooling and low crime rates. Appleton has many great neighborhoods to offer, the two that I would suggest are Apple Creek and Darboy. The housing cost in these two areas are mid-high, but with that comes low crime rate and great schooling options. When looking for a family friendly neighborhood in Appleton these areas are a great place to start.

How old are the appliances and major systems?

No one likes to buy a house and within a year already has appliances breaking down on them. When buying a house have a good understanding when it comes to the lifespan of essential systems, such as the air conditioner, furnace, water heater, washer, dryer and stove. Having to repair these can cost you a lot of money. If some of these appliances are in rough condition, ask the seller to purchase a home warranty. This would help cover the replacement cost if there were something to break down.

If you are looking to buy an under-priced or a newly remodeled house in the Appleton WI area contact us today 920-215-4201

How Long it Takes to Sell Your House

Are you thinking about selling your house, but your worried about how long it will take? Having to keep your house in perfect condition for those short notice showings can get annoying. Then there is the inspector that can make things worse.

Going Through a Realtor
The most common way to sell your house is to go through a Realtor. By doing this it may take anywhere from 35-50 days to find a buyer. This timeline can be affected by a slow market, which can make that number reach triple digits! Another factor to consider when going through a Realtor is a house inspection. An Inspector can cost you a lot of time and money due to outdated/damaged appliances and property foundation that you'll have to pay to get fixed.

Other Option
Another option would be to go through us! At CB Home Solutions we help to make this process move as fast as possible. Unlike Realtors we are willing to buy your house in as is condition for cash! This saves you a lot of time and annoying short notice showings, by not having to wait for us to find a buyer because we are the buyer. 

Give us a call at our office line 920-215-4201 & have a conversation with Carter. He will walk you through the process & explain everything.


 

How to Wholesale Real Estate - Appleton WI

If you are just looking to get started in real estate investing, wholesaling houses might be your best option! You can do this with very little to no money down & make huge profits! So, how do you get started?

The first step in wholesaling real estate is to become educated. You don't want to be known as the investor who says you are going to close & then at the last second you have to back out because you realize the property is not a good deal. If you say you're going to buy a house & have a contractual obligation, you better go through with the purchase.

Now, how do you become educated? The biggest resource nowadays is either online via Youtube, or actually attend or sign up for other Real Estate Investors courses on how to get into the business. Most of the time the courses are $500-$5000 but they will teach you everything you need to know to get into the business. Personally, I went the course route & believe it was the best investment I could have made.

After you learn the basics then you need to start marketing for homeowners & cash buyers. The homeowners to actually make a deal happen & the cash buyers you will be assigning your contract to once you have a deal. If you don't have at least 150+ cash buyers, I would recommend using the tool called propstream.com 

This is a great resource to build your cash buyer database at a rapid pace. Once you get the deal under contract you will need to schedule a time with the owner to bring your investor partners through aka your cash buyers. Make sure you disclose to the seller what you are doing so they are fully aware of what is taking place. The last thing you need is a lawsuit because you didn't disclose the right information.

If you want to be mentored 1 on 1 & the cost of mentorship is the splitting of your first 3 deals please reach out to us at 920-215-4201

Thanks for reading!

Best Place to Buy a Duplex in Appleton WI

Hey you guys, Carter here with CB Home Solutions... Are you considering buying a duplex in the Appleton WI area? Do you want to live Downtown or on the out skirts of the city? In this article I will go over the need to know information so you can find your next house! 

What Style Duplex Fits Your Needs?

Are you looking to stay on the cheaper or more expensive side of things. One thing I know forsure is that an upper/lower duplex will be significantly cheaper then a side by side. Upper/lower duplexes are more common in the downtown area as they are an older style duplex & very rarely built nowadays. 

In most situations, the side-by-side duplexes are more expensive and they’re more popular. This is because you won't have neighbors running above you & hearing footsteps at all hours of the day. People will pay a premium for quality housing.

College Campus or Normal Neighborhood?

Then, one thing I would say to watch out for, things that you need to be aware of prior to buying a duplex, and finding one in the best place in Appleton. Do you want to be close to campus? So, there’s Lawrence University in Appleton, which is a private university. The average rents are college campuses are higher just based on the fact that there could be more damage from the tenant base. Most college rentals are re-leased every year causing high turnover expenses.

With most college rentals I would recommend have 2x the security deposit and having parents co-sign on the lease. Most parents want their children living in nice quality housing so they don't have a problem doing this. 

What Style Duplex is More Expensive?

Like I had mentioned previously, the side-by-side duplexes are more expensive than an upper lower. People will always pay a premium for a higher quality house & that is present in the side by side duplexes. I personally own a more expensive side by side. 

Do You Want to Drive Past the Duplex Everyday?

Are you the type of person that needs to have a pulse on what's going on everyday. Well, if you are then I would recommend buying as close as possible to your current residence. 

What is the Better Investment Vehicle?

It depends if you're looking for immediate cash flow or long term appreciation. Most upper lower duplexes cash flow very well, but the long term appreciation is much less. It is totally up to you to decide, & the best part.... you can have both! 

You can call me on my cell or text me, (920) 252-2864, if you have questions on where to buy a duplex in the Appleton WI area.