Hi BiggerPockets! My partner and I are extremely new to this industry and are super excited to get our first flip started! We have an extremely knowledgeable realtor, financing available and my father has over 30+ years of construction experience. We feel we have a decent team set up for our first flip, but are having trouble finding a good home in San Antonio. We have visited several homes but none of them seem to be good flips for our first project. We also feel that we are tiring out our realtor and we really don't want to burn her out.
Is there anyone out there that might be willing to help us out? We would love a mentor and partner to help us (of course we wouldn't mind sharing the profit too!)
I know this is a lot to ask.. but hey, we won't ever know, if we don't ask! :)
I would strongly suggest you attend some of the REIA events and also check out meetup websites for real estate professionals. It will be your best bet to find those you are looking for. Find people like myself and we also may be able to introduce you to a few folks!
I was told that getting a home from a wholesaler isn't the best way to go... What are your experiences with that? Is that a good direction for our first rehab and flip?
theres nothing wrong with getting a deal from a wholesaler @Ernest Losoya , you just have to know what a good deal is. People will talk bad about wholesalers, but you've seen what's available on the market. I would start pursuing off market wholesale deals and use your realtor to give you a second opinion. They should be able to invest time even if there is no commission as long as you're listing with them when you sell.
@Ernest Losoya If you don't know what a good deal looks like before you go buy a house, you can really have a problem on your hands. A deal is a deal, so if it's from a wholesaler it doesn't matter. What does matter is that you have the skill to make sure it's a deal and not junk, and that is up to you. I would strongly recommend if you are getting in to this world that you look at the calculators that BP has and start running the numbers on all sorts of houses to start to figure out what a real deal looks and smells like.
Best of luck!
Thanks @Matthew Forbes . At this point, my partner and I want to make sure we get into the very best house possible which will in turn will allow us to profit off of it. To be honest, being that it is our very first house that we will flip for a profit is kinda scary. Like I mentioned before, we have a great Realtor and we also have access to PropStream that allows us to pull our own comps. We truly appreciate all the feedback that we have received from fellow investors.
Hey, we all have to start somewhere right?
If this was easy, EVERYONE would do it!!
With that said, @Matthew Forbes , in your opinion, what is a good deal when looking at a property? When you look at the numbers, what key things do you look for?
@Ernest Losoya I don't do flips, but I do need to understand how much money the flipper needs to make so I can buy my house correctly. Numbers that are key for me:
1) Honest Comps in the area, both high and low. I need to see within 200 feet same type of house with same Bed/bath that has sold in the last 6 months and condition. I also look at 3 that are on the market. The helps me figure out what you the flipper can get for it or ARV.
2) I need to understand what you are going to do to the house and how long it is going to take so I understand your (the flipper) holding costs (the soft stuff)
3) I need to build in plenty of margin so when I get it wrong, I don't loose my shirt.
That's a start
wholesale deals aren't always a bad option, it's just that some big and small wholesalers try to resell you a property they found on the mls. Those properties were seen and looked at by me and a bunch of other investors, and there's a reason why no-one bought it in the first place. Also, I have had wholesalers provide me with horrible rehab estimates where they overlook some important issues (like an $8k electric wiring update). Some won't even mention foundation/leveling issues on their estimates, yet the house flooring looks like a bow.
I'm not here to say I know it all, but that's my 2¢
Tell me the area you're looking to buy, and if I see something I'll let you know. Your realtor might be awesome, but most agents don't know where to look for off the market properties.
When you say you have visited many homes, were those homes on the mls? If so, it's definitely gonna take a lot longer because that's were everyone is looking. Try to do a flip analysis before you even step into the house. Kind of guesstimate the obvious repairs and work from there.
What part of town do you live at? Good luck.