When you deal with owners and place your offer how much do you give them for earnest money? Also what do you do about showing an owner proof of funds or pre-approval from a lender?
House Flipping Thread
- Thread starter The Don
- Start date
HacksawJimThuggin
All Star
I'm in a little bit of a different situation because I own a title company. So it's easy for me to draft my own escrow letter and send it to the Sellers.
However, I have other investors that will send me $1,000 or $5,000 or how much ever they want to send and it essentially serves as a rolling deposit for any ongoing deals they're trying to get under contract. My advice would be to build a relationship with a title company that will let you do something similar and reach out to hard money lenders or transactional funding sources and let them know you may be interested in using them moving forward and they'll typically be fine with granting you a proof of funds because they know you'll actually be using that money from them if you sign the deal and eventually close.
Great advice
skyrunner1
Superstar
Man Biggerpockets changed soo much
, really went corporate. Used to be on there over a decade ago, knew the owner Josh and all the main players over there, at time I dont even think he had real estate or in his words wasnt really good at it. Met up with him in Denver and all. But this thread is right up my alley, got started I guess most would call wholesaling, wholetail, have done rehabs and have invested in new construction, doing own now. This episode touched on ALOT of things but some key standouts to me was people who do this type of stuff I always wonder what their source of data and how they put it together (gonna link another video where guy talk about data, got to hunt it down.), data is king but it has to be the right data AND displayed the presented the right way.
Also one of the first guys I knew who was doing something like this was Kent Clothier, he was marketing to investors in Cali and presenting them turnkey properties in Memphis, he also did 100s to 1000s of deals, he was one of those early internet marketers and pretty good at it (think david deangelo/eben pagan). He had masterminds and such and when you get out there you realize those properties were literally on just sitting on mls and you could buy with ease just because of how that local market is set up. Ohio is the same. Detroit they were GIVING away. Its hard to understand why you cant do 100 deals in your city unless they sit down and really break it down because deals arent sitting in markets like Cali, AZ, NY, FL. #1 thing is how you can source your deals, plus their margins are really thin which is why they were pulling Cali investors used to lower returns to get more out of it. The same numbers he said is same thing kent was doing.
Last he was talking about detroit and there is some brehs and brehettes doing land banking and doing well with that. In a sea of people tryna sell "the play" this breh channel really get real players and people actually making move$. Charles also got his own channel (the landbank show)
skyrunner1
Superstar
Wasnt on site when this thread was started, good to see other brehs making moves on here, have done wholesale and flips also. Hacksaw is right at end of day its about getting your marketing on point and getting a deal flow, after that everything else is "simple" enough. You still in south florida market?
Always looking for opportunities, was looking at some land and houses yesterday. Main way to find GC is network and drive around looking for other rehabs or new construction, or go to home depot 6am (real players in there EARLY to get they shyt and be at jobsite on time) if you got gift of gab talk to the people at the pro desk home depot they can point out some also. But referral is best way. I like pulling up to job also because I can look at the work and do a quality control RIGHT THERE.
skyrunner1
Superstar
There were a couple people I seen talking about Data and real estate. Neal Bawa is a syndicator and more in multifamily but you can adapt for your own strategy.
Ariel Herrera is a data scientist and also does it on single family and with Airbnb, good video. I would also say it is good to reach out to these people if possible, we live in a time where anybody is a DM away, its less successful than in past because of the noise or if they have HUGE followings but there are tons of people in this arena with small followings making moves and I would say they are better to connect with and increase your chances. Like anything its a numbers game, dont matter who says no as long as you link with people open to network.
Ariel Herrera is a data scientist and also does it on single family and with Airbnb, good video. I would also say it is good to reach out to these people if possible, we live in a time where anybody is a DM away, its less successful than in past because of the noise or if they have HUGE followings but there are tons of people in this arena with small followings making moves and I would say they are better to connect with and increase your chances. Like anything its a numbers game, dont matter who says no as long as you link with people open to network.
desjardins
Veteran
Yea since I made that post I have found ways to source contractors, what you suggest are probably the main ways but I'll just add that going to specialized stores like plumbing stores or cabinet stores and asking employees there who is coming in buying consistently is another tip I heard
skyrunner1
Superstar
Anybody got anything cooking lately? This year been kinda crazy, feel like I am getting decent deal flow problem is moneyyyyy.. Which is complete opposite of what it used to be. Since these properties even in the hood are 500k+ you can have a home run deal and still have to put up like 10% if you doing hard money. Got my hands on a skinny deal that I bought majority cash, then a home run fell in my lap right after I close on the skinny deal I wouldnt have touched if it was flipped.. Secured the money on the home run recently but its a higher price point so even 10% + closing cost and upfront rehab is 6 fig outta pocket.. 
Now got a couple more good deals I just came across and cotdam.. 700k exit can pick up for about 500k, rehab probably 60-70k. I havent seen the other yet.. This does not include the new construction stuff and apt building stuff I got into earlier this year.. shyt was just slow earlier this year, now its flipped and this market TO ME dont make any sense
At this point, its fukk it and ride the wave..
Now got a couple more good deals I just came across and cotdam.. 700k exit can pick up for about 500k, rehab probably 60-70k. I havent seen the other yet.. This does not include the new construction stuff and apt building stuff I got into earlier this year.. shyt was just slow earlier this year, now its flipped and this market TO ME dont make any sense
At this point, its fukk it and ride the wave..What are you walking away with after holding and closing costs on something like this?Anybody got anything cooking lately? This year been kinda crazy, feel like I am getting decent deal flow problem is moneyyyyy.. Which is complete opposite of what it used to be. Since these properties even in the hood are 500k+ you can have a home run deal and still have to put up like 10% if you doing hard money. Got my hands on a skinny deal that I bought majority cash, then a home run fell in my lap right after I close on the skinny deal I wouldnt have touched if it was flipped.. Secured the money on the home run recently but its a higher price point so even 10% + closing cost and upfront rehab is 6 fig outta pocket..
Now got a couple more good deals I just came across and cotdam.. 700k exit can pick up for about 500k, rehab probably 60-70k. I havent seen the other yet.. This does not include the new construction stuff and apt building stuff I got into earlier this year.. shyt was just slow earlier this year, now its flipped and this market TO ME dont make any sense
skyrunner1
Superstar
Should be a 100k+ net profit.. Key word is should..
Pros and cons.. Its in a desired neighborhood with very low inventory (like no similar houses available).. DOM are low and go under contract quickly if priced right.. I never over aggressivley price my properties so they usually move as its usually priced right ( I would rather price low and have multiple offer scenario than price high and sit and have to drop price)
Con is overall market slows down this time of year and things priced over 600k can be tricky. Look like we got clear to close so will keep posted. This isnt a typical deal but usually get a good homerun yearly so lets see how it plays out.
Are you gonna 1031 exchange this proceeds?
Hope you get an over asking price and quick closing!
Sunalmighty
Superstar
first house i bought, lived there for some years, rehabbed it and sold it. made 130k
got the current house we are in now. currently rehabbing here and there. interest rate 0.375 so ill never sell. id be a fool to.
applied for the company name on the state of georgia website, name has been reserved for our LLC. applied for our business license. should get everything in the mail next week.
got the current house we are in now. currently rehabbing here and there. interest rate 0.375 so ill never sell. id be a fool to.
applied for the company name on the state of georgia website, name has been reserved for our LLC. applied for our business license. should get everything in the mail next week.
skyrunner1
Superstar
I have tried it before but it really depends on having things lined up timing wise.. We will see..
You already know!
