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Rehabbing & House Flipping

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Dillan Mamou
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Newbie flipping homes in Indiana

Dillan Mamou
Posted Sep 13 2022, 16:09

Hello, my name is Dillan Mamou and I'm based in Southern California. We all know the crazy home prices and cap rates in Cali, hence why I have been looking elsewhere and Greenwood, Indiana has caught my eye tremendously. I have been studying the market in Indiana for quite sometime and have got in touch with some contractors to navigate the best neighborhoods and what areas to avoid so I have a good understanding what a buyer would be looking for ( 3 beds, 1 bath, yard, schooling etc). It seems almost insane to flip a home in another state where I'm not able to see the project, but I know it can be done remotely. Being this is my first time ever flipping a home, what advice would you recommend I do? I got a preapproval from a hard money lender and I have some money for a down payment, but would like to stick with hard money. I have access to 65K in credit line if I ever need for an emergency. I Know that some hard money lenders do cover 100% of rehab costs which helps too! I'm just stuck in this decision making on whether to pull the trigger on a property in a state I've never been in before. I know people can be shady so making calls with the lender, contractor, and title company weekly is key to gaining their trust. What are some thoughts you guys have? Thank you!!

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Andy Sabisch
Pro Member
  • Investor
  • Wilkes-Barre, PA
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Andy Sabisch
Pro Member
  • Investor
  • Wilkes-Barre, PA
Replied Sep 13 2022, 20:29
Welcome to the world of flipping . . . . hope you do well.  As far as doing it remotely in a town you have never been to that brings up a myriad of possible issues.  

Do you have someone that can be your boots on the ground that is not tied to the contractors that you will need?  Agents can fit the bill but ensure that they are investor friendly and can support what you are doing - assuming you will use them to sell at the end (with the associated cost).

Be sure you run your numbers (HML costs can add up quickly) since renovation and carrying costs can eat you alive. Having a solid contract in place is key but if you are remote, taking a contractor to court to recoup money is not an option you want to explore.  

Buy right and ensure you have the renovation costs figured with a 15% buffer to ensure you will see a positive payday at the end.  If all your contractors make money but you break even, was the juice worth the squeeze?

Post details on what you are looking for and others here will chime in with possible pitfalls that can save you money.  HMLs will also do their due diligence since they do not want to take on a losing project.

Again, good luck and we open for help from the BP family

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Gloria N Gear
  • Realtor
  • Indianapolis IN
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370
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Gloria N Gear
  • Realtor
  • Indianapolis IN
Replied Sep 19 2022, 07:11

I can be your boots on the ground team.  I have a network of contractors and other companies you may need (and ones to tell you to stay away from).  One of my assistants lives in Greenwood, so we really have a good grasp of the area.  I also could point you to other areas close that would work for you.

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