Real Estate Investing/Development

[Cynic]

Imma cook regardless
Since you're such an expert, why don't you offer some anecdotal evidence or some type of actionable advice. That's what OP was looking for before the thread was derailed

I’m no expert, I sold all my entanglements already. I’ve posted info already on this site on how to build an investor list and acquire commercial properties and businesses and how to get BMV houses BEFORE they get into foreclosure...


OP will be fine, if he’s serious. He’ll grill his coworker then consume everything he can from multiple sources and take the plunge.

 

[NeilCartwright]

How I built a portfolio of 35 rentals and $10k+ monthly cash flow

I check this forum pretty regularly. Going to look at a Turn Key property (one where i dont have to rehab) to buy to start off.

 

[TNOT]

I closed on my first flip today.

Bought as an auction property for 115k. Put right at 14kin. Sold for 185k. Netted 166k after fees and portion of closing.

Not bad for a first time.

Only negative was finding out I had to replace the plumbing under the slab. I couldn't do a video inspection before purchase since it was an auction property.


Takeaways.

Do as much as you can yourself.
Unless your an electrician or plumber by trade, pay someone for that.

Spend money on kitchen updates and bathrooms fixtures.

On to the next

 

[MMA]

I closed on my first flip today.

Bought as an auction property for 115k. Put right at 14kin. Sold for 185k. Netted 166k after fees and portion of closing.

Not bad for a first time.

Only negative was finding out I had to replace the plumbing under the slab. I couldn't do a video inspection before purchase since it was an auction property.


Takeaways.

Do as much as you can yourself.
Unless your an electrician or plumber by trade, pay someone for that.

Spend money on kitchen updates and bathrooms fixtures.

On to the next

what kind of math? please fix breh

 

[TNOT]

what kind of math? please fix breh

House sold for 185 we got a check for 166k.

Sorry, I was in a rush.

 

[kenjaminfranklin]

I closed on my first flip today.

Bought as an auction property for 115k. Put right at 14kin. Sold for 185k. Netted 166k after fees and portion of closing.

Not bad for a first time.

Only negative was finding out I had to replace the plumbing under the slab. I couldn't do a video inspection before purchase since it was an auction property.


Takeaways.

Do as much as you can yourself.
Unless your an electrician or plumber by trade, pay someone for that.

Spend money on kitchen updates and bathrooms fixtures.

On to the next

Congrats Fred. Looking to do my first flip within the next three months. How did you get access to the auction and what else would you do differently or be sure to do next time around?

 

[TNOT]

Congrats Fred. Looking to do my first flip within the next three months. How did you get access to the auction and what else would you do differently or be sure to do next time around?

It was a bank auction. Basically a foreclosure.


Well since I got burned with the plumbing, I would definitely pay for a video inspection before moving forward with a purchase. That wasn't a option since it was a foreclosure.

In the beginning I wanted to do alot of upgrades thinking that would yield me more profit. That didn't last.

I put in ceiling fans and light fixtures in all the rooms.
Painted the cabinets and replaced faucets and lights in the bathrooms

Every room got a fresh coat of paint on walls and trim.

Kitchen got new appliances and I added a backsplash and kitchen faucets, garbage disposal.

Curb appeal is a must. Absolutely spend money on a good yard guy. Nothing extravagant just nice and clean. That goes for most of the upgrades yo ui lol make to the property.

Dont go cheap on work that has to be done the right way the first time. Like AC repair and plumbing.

Not passing a buyer's inspection is a time killer and can be costly. Make sure your work is done correctly and up to code.

This house didn't need much work. I would highly recommend looking for a property that's in good shape on your first flip. The profit might be smaller but you learn the process and get comfortable with working your budget.


Good luck

 

[NeilCartwright]

It was a bank auction. Basically a foreclosure.


Well since I got burned with the plumbing, I would definitely pay for a video inspection before moving forward with a purchase. That wasn't a option since it was a foreclosure.

In the beginning I wanted to do alot of upgrades thinking that would yield me more profit. That didn't last.

I put in ceiling fans and light fixtures in all the rooms.
Painted the cabinets and replaced faucets and lights in the bathrooms

Every room got a fresh coat of paint on walls and trim.

Kitchen got new appliances and I added a backsplash and kitchen faucets, garbage disposal.

Curb appeal is a must. Absolutely spend money on a good yard guy. Nothing extravagant just nice and clean. That goes for most of the upgrades yo ui lol make to the property.

Dont go cheap on work that has to be done the right way the first time. Like AC repair and plumbing.

Not passing a buyer's inspection is a time killer and can be costly. Make sure your work is done correctly and up to code.

This house didn't need much work. I would highly recommend looking for a property that's in good shape on your first flip. The profit might be smaller but you learn the process and get comfortable with working your budget.


Good luck

Good looks.

Can you go over how you decide what exactly within the house needs to be upgraded/replaced? Do you pay for an inspection and you review what they say is wrong, then fix it?

Right now I’m trying to figure out how to find contractors, and once I find them telling them what to fix.

 

[TNOT]

Good looks.

Can you go over how you decide what exactly within the house needs to be upgraded/replaced? Do you pay for an inspection and you review what they say is wrong, then fix it?

Right now I’m trying to figure out how to find contractors, and once I find them telling them what to fix.

There is no clear cut answer on what to replace and what not to. But I would say stick to the things people pay attention to, new light fixtures and fresh paint can make a room look brand new. No one wants to buy a house that looks dated.

Ultimately your budget will determine what fix . Make a list of what you have to fix , then make a list of what you want to fix.

A contractor isn't always necessary. I didn't use one. I already knew a electrician, a plumber, a roof guy, and carpenter. This is the main reason I believe it's best to start out small. Find a property that doesnt need much work, you can hire out your own repairs. Your profit will be smaller but you will get more confidence in how to manage the flippin process.

The buyer pays for the inspection, the seller makes a decision to fix what needs to be fixed. However some sellers will say the house is sold as is . Basically you buy it you fix it. You'll run into this more than a traditional home buyer. Keep in my mind you're goal is to buy a home for cheap as possible, the cheaper you the more will need to get done in order to sell the property for profit.

Once you place the property on the market and get an offer from someone to buy it they pay for an inspection and you (the seller) need to fix the issues. It's a tedious, nerve racking process, but it has to be done.

If you haven't created an account on bigger pockets yet, you need to. It's a valuable resource.

In short

Find a property
Find comps in that area( similar houses sold in that area)
Does the purchase price + renovation cost enable you to make a profit in comparison to the comps in that area

You buy the house for 80k. You estimate 20k in renovations, you have a total of 100k invested. Houses similar to yours( same square footage, number of bedrooms and bathrooms ) have sold for 145k.

Potential profit of 45k

Every decision you make will be made with those numbers in mind .

 

[Swirv]

I started differently, granted I already had experience in other business. If you can build an investor list and develop contacts in the industry and provide value to them. The amount of money to be made without risking your own credit and capital is not even funny.


I believe Trump repealed Dodd-Frank as well so people will be feasting like never before.

Dodd Frank Act has not been repealed. Certain parts have been but the bulk of it is unchanged unfortunately.

 

[ORDER_66]

How hard is it to get your real estate license?

Also if you get one you can practice your trade anywhere right?

 

[Swirv]

Good looks.

Can you go over how you decide what exactly within the house needs to be upgraded/replaced? Do you pay for an inspection and you review what they say is wrong, then fix it?

Right now I’m trying to figure out how to find contractors, and once I find them telling them what to fix.

You have to make upgrades that will not only pass inspection but also appraise for the purchase value. Keep in mind that many buyers purchase with FHA loans and the house needs to be in tip top shape damn near to pass the appraisal.

Yes you should have a property inspection and a contractor with you to tell you how much repairs will be.

Also think outside of the box. Maybe that dining should be made into a bedroom or opened up to flow with the living room. Can the attic be finished to add extra square footage? Stuff like that. Seeing the potential and being able to bring it forth without spending to much but maximizing value is important.

Learn about what a cap rate is if you’ll be buying income property. Being a successful landlord isn’t rocket science.

 

[Cynic]

Dodd Frank Act has not been repealed. Certain parts have been but the bulk of it is unchanged unfortunately.

I know, recently discovered this when I was looking into a few things.

 

[desjardins]

I did a lot of research on this about a year and half ago
Read bigger pockets for a while (and the podcast)
Did all of the analysis excel spread sheets they have on there
Then I met Ken Weinstein (Welcome | Philadelphia Magazine) and did a mentor thing with him for while and another guy who had 50+ properties spent some time with me going to homes and evaluating them as properties
Ultimately I fell back and never put any skin into the game for the following reasons:

-It's ALOT of dumb money in the market right now. Every body and their grandma is trying to flip houses or develop real estate right now in my area, feels very 2008ish.
Now a lot of dudes who were successful from 2009-til now mostly on off the rebound of prices are starting to "sell shovels to the gold miners". With hard money loans and selling real estate courses. To me that a sure sign that most of the gains may be gone in this market

-I needed to learn more about contractors, and I found difficulty finding trust worthy ones to work with

-Tons of shady ass "wholesalers" who promise you xyz and it's some bullshyt when you look into it further

-Can't trust nobody: The one mentor I had with the 50+ properties went with me to a spot that was $45k so we can peep it. A day or two later that shyt was sold and I think the mentor bought it cash (the house wasn't even listed, it was a property we had an inside track on...which is another issue. Most of the good deals never even get to the stage of going public)

-A lot of cash buyers you just can't compete with, see above, this is especially a problem at the sheriff sale where dudes like ken weinstien go and spend $300K like it's nothing

There is obviously money to be made, just do your research, find mentors with the realization they will still be your competition, and hope you are in an area where there is still room for going returns

 

[Amerikan Melanin]

Going into this right now. Got a mentor who will give me 10% of every property I find that we flip. Gonna just keep reupping that money until I can do my own thing.

My goal is to own 100doors multi family/apt buildings/mobile homes. Also want laundrymats.