So, If I want a Mentor who flip houses...

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So, If I want a Mentor who flip houses...

Daniel Cruz
Knoxville, TN · Member since 2013 · 100 posts · 24 votes

I'm mostly interested in learning how to analyze property rather than flipping houses, but I imagine that house flippers really have a lot of experience w/ the analysis.

I can lend money to help fund deals (purchasing a place, rehabing), I can also buy lunch.

Are these good ways to attract a mentor.

I know you have to build a relationship, I'm not good at meeting people and I'm not good at long conversation (wife says I have boring personality and she's right).

Anyway, just dipping the toe...Thanks

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Jacob A.
Investor · Raleigh, NC · Member since 2013 · 348 posts · 128 votes
12y

@Daniel Cruz

What exactly is your question here? There are a million good resources out there that will give you amazing guidance on how to analyze deals. You don't need a mentor to show you how to analyze a deal. If deal analysis is what your are ultimately after go look on the MLS and do an analysis on every single house you see. Keep doing it over and over again. Look at comps in the area. If you don't know your repair costs yet, which it sounds like you don't, then figure out all the other pieces of the puzzle like the ARV (after repair value) by looking at comps, figure out your financing costs by talking to lenders, and you can back into what your maximum repairs could be. Walk through a few houses with a contractor and get him to give you estimates. After a while you will be able to tell what a 10k rehab looks like versus a 50k rehab and a 100k rehab and so forth. It's just like any other aspect in life. Practice, Practice, Practice. Anyways, I hope this helped. Good luck to you!

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  • Jacob A.
    Investor · Raleigh, NC · Member since 2013 · 348 posts · 128 votes
    12y

    @Daniel Cruz

    What exactly is your question here? There are a million good resources out there that will give you amazing guidance on how to analyze deals. You don't need a mentor to show you how to analyze a deal. If deal analysis is what your are ultimately after go look on the MLS and do an analysis on every single house you see. Keep doing it over and over again. Look at comps in the area. If you don't know your repair costs yet, which it sounds like you don't, then figure out all the other pieces of the puzzle like the ARV (after repair value) by looking at comps, figure out your financing costs by talking to lenders, and you can back into what your maximum repairs could be. Walk through a few houses with a contractor and get him to give you estimates. After a while you will be able to tell what a 10k rehab looks like versus a 50k rehab and a 100k rehab and so forth. It's just like any other aspect in life. Practice, Practice, Practice. Anyways, I hope this helped. Good luck to you!

    1Reply
  • Daniel Cruz
    OP
    Knoxville, TN · Member since 2013 · 100 posts · 24 votes
    12y

    bummer... I should really proof read my stuff before posting :(

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  • Daniel Cruz
    OP
    Knoxville, TN · Member since 2013 · 100 posts · 24 votes
    12y

    Jacob, Don't you need a real estate license to look at the MLS? I had an aunt who was a real estate agent and she was very protective of that thick MLS book, though I admit that was a couple of decades ago.

    My basic question is how to attract a mentor? I'm a better student when shown how to do something and hands on. I can read a book, but I can't ask the author questions - like, "is this a good deal for the area?". I have a long commute to work and listened to "Rich Dad, Poor Dad" and he basically says "Go find a good deal" and yet sometimes "you don't know what good looks like".

    May be I'm underestimating the ability of how much a good analysis book can teach, I don't know.

    I was pocking around loopnet for multi-family units (my real goal), and they all flowed cash (on paper), but I also know it's not good to throw a dart at such a big investment.

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  • Jacob A.
    Investor · Raleigh, NC · Member since 2013 · 348 posts · 128 votes
    12y

    @Daniel Cruz

    By looking at the MLS I meant checking out free sites like Redfin or Zillow to look for homes for sale in your area. Then get comfortable with coming up with the ARV yourself by looking at comps either on those sites or on your local tax website. It sounds to me like you are just looking for re-assurance that what you are doing is correct which is completely understandable. Go find a deal analysis on BP here that someone has posted and apply it to a deal you are looking at and make sure you've accounted for everything.

    As far as finding a mentor, I'd suggest going to local REIA meetings in the Knoxville area. Tell people what you are trying to accomplish and that you may even have the ability to put money in on some deals in return for education. I'm sure some people would be more than willing to work with you.

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  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    12y

    @Daniel Cruz

    Hi Daniel,

    Our group has bought and rehabbed over 50 properties this year in Kansas City.

    Feel free to connect and I would be happy to assist and point you in the right direction.

    Thanks and have a great day.

    Podcast Guest on Show #89
    Oz Realty4.5368 Reviews
    WebsiteView Page
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  • Jon H.
    Investor · Birmingham, AL · Member since 2013 · 51 posts · 9 votes
    12y

    Hey Daniel,
    I agree with jacob. I'll check out zillow for a deal in my target price range. I'll drive the area to get a feel for how safe it is, if i like what i'm seeing, etc. Once you get a feel for the areas in your town you can pretty much limit your search to the areas your most comfortable in. Then you can search Zillow, Hud, Craigslist for deals you might be interested in.

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  • Jon H.
    Investor · Birmingham, AL · Member since 2013 · 51 posts · 9 votes
    12y

    So How do we know if your getting a deal. What i do is i'll check zillow to see what has sold in the last 6 months. If i'm really interested in a property i'll call my realtor and have him pull the comps. If i think there is enought meat on the bone i'll then go see the property. This is when knowledge of what things cost is an advantage. Google investment property costs sheets or Construction lists. Take the list with you and check everything you think will need to be done. Or better yet to get started call a contractor and have them meet you at the property. He can go through the property with you and give you an idea of what things will cost. Do this with a couple of different contractors on a few diff houses. That way you'll get a feel for the different ranges. Also there are some great calculation tools this website offers. Use them to make sure you would be getting a good return on investment.

    1Reply
  • Daniel Cruz
    OP
    Knoxville, TN · Member since 2013 · 100 posts · 24 votes
    12y

    Thanks Everyone for the excellent advice.

    0Reply
  • Phil Z.
    Real Estate Broker · Orange, CT · Member since 2013 · 951 posts · 218 votes
    12y

    To analyse price, you need to compare the property to comparable sales. Usually within .5mi for inner city and 1 mile for suburb. Try to keep sqft within 20%.

    As far as analyzing repair values, your best bet would be to talk to local flippers who use contractors and see what they estimate for costs. Or you can try to find low cost contractors directly.

    0Reply
  • Phil Van Dyke
    Harrodsburg, KY · Member since 2013 · 28 posts · 1 vote
    12y
    Hey Daniel. I would like to contact you. Can you email me at [email protected]?
    0Reply
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