Hi, I am new to the site. I have my first potential deal. I am a General contractor who works for a few flippers venturing on my own now.
Thinking of an offer of $425k
I always thought I would start with a smaller house. How do I find investors in the Portland, OR area that will invest in the purchase, how do I find working capital, and is there a good way to structure the deal to use my company to do all the reno?
Facts: House is probate sold by a family friend. Mortgage paid for so any offer is pure profit for family. They dont want to finance and want to get rid of the house. Already had cash offers for $400k with not mls listing.
Any tips for a newbie?
Unless I could nail down the ARV to the very upper end of your range, I wouldn't consider this a very good deal.
With a $425K purchase, $75K in rehab and likely at least $60K in fixed costs, you're all in for about $560K. Unless you can sell for close to $650K, your ROI is less than 15%, which is what I'd consider the minimum for a first investment in this price range.
@Tucker Merrihew is one of the big shots in Portland. You might contact him, or he might show up in this thread since I've tagged him.
If you give me the neighborhood you are referring to and the specs of the home I would give you my two cents on the deal......from initial glance it seems like the deal would be too slim, but your ARV may be higher depending on what you do to the property.
@Michael Do Do you have the ability to fund the construction portion of the rehab, since you own the company?
Depends on the size of the rehab. I am finishing up a couple projects this week and expect payment over the next few. Im working on finding investors.loand to fund rehabs for the future. The right property and deal I could make something work.
@Michael Do Michael, when you reply to someone specific, use the @ before you type their name, and bigger pockets will notify them.