Rehabbers and flippers--speak up

Rehabbers and flippers--speak up

Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes

I'm curious about a couple things in rehabbing and flipping.
1. What is the average purchase price of the flips or rehabs you're buying?
2. What is your average time from purchase to sale on homes?
3. Do funds available, limit the # of properties you purchase or are the properties getting harder to come by or both ?
4. What % of the properties are financed with borrowed funds?
5. If you had more funds available at EXORBITANT rates, would you purchase more properties?
6. On financed properties, are you paying interest, sharing a % of profits or both?
7. How many properties have you turned in last 18 months?
8. What has been your biggest concern or problem with your process?

I have some of my own thoughts and experiences, but wanted to look at a larger cross section
Thanks for any replies. Rich

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Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
16y
Originally posted by Mark Yuschak:
Where is this "thread #2" you're referring to? Link?


http://www.biggerpockets.com/forums/67/topics/46387-reabbers-and-flippers-2-there-is-a-reason-for-my-madness-
See this reply in the discussion

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  • Real Estate Investor · Craigmont, ID · Member since 2009 · 564 posts · 239 votes
    16y

    Rich, I didn't initially respond as I am currently partnering with someone for split of profits and I want a deal or 2 under my belt before branching out with other lenders

    This is where I hope to be dealing. I have had some challenges finding deals despite a concerted effort. The rehabbers in my area seem to be paying far to much for acquisition and for that reason I am looking at wholesaling to rehabbers instead of rehabbing myself...We'll see how that goes :lol:

    1. What is the average purchase price of the flips or rehabs you're buying? [b]125K

    2. What is your average time from purchase to sale on homes? 4 months

    3. Do funds available, limit the # of properties you purchase or are the properties getting harder to come by or both ? Yup!

    4. What % of the properties are financed with borrowed funds? 100% at this point (I'm partnering with someone)

    5. If you had more funds available at EXORBITANT rates, would you purchase more properties? Yes

    6. On financed properties, are you paying interest, sharing a % of profits or both? % of profits

    7. How many properties have you turned in last 18 months? 0 :(

    8. What has been your biggest concern or problem with your process? Negotiating deals on properties that fit my parameters.

    Sorry, The bold button didn't seem to work right :)

  • Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    16y

    Thanks Sam- you seem to add to the info that properties are getting harder to find -at least at good prices. I have a kid living in Missoula- why, I don't know. Too cold. Your 125K is the highest price. That might be causing the problems. Rich

  • Real Estate Investor · Craigmont, ID · Member since 2009 · 564 posts · 239 votes
    16y

    I am looking to stay under 200K ARV as that is what is moving in our area. Missoula is a good 50K higher.
    Could you clarify what you meant about 125K price? If I include repairs it would be 155K

  • Flipper/Rehabber · Orlando, FL · Member since 2008 · 263 posts · 147 votes
    16y

    I'm curious about a couple things in rehabbing and flipping.
    1. What is the average purchase price of the flips or rehabs you're buying?

    Between $40 - $150k

    2. What is your average time from purchase to sale on
    homes?

    Generally 90-120 days start to finish

    3. Do funds available, limit the # of properties you purchase or are the properties getting harder to come by or both ?

    Finding the "correct" properties is by far our limiting factor

    4. What % of the properties are financed with borrowed
    funds?

    None - all cash

    5. If you had more funds available at EXORBITANT rates, would you purchase more properties?

    Not really - would prefer to JV

    6. On financed properties, are you paying interest, sharing a % of profits or both?

    NA

    7. How many properties have you turned in last 18 months?

    22 - since Feb 09

    8. What has been your biggest concern or problem with your process?

    Consistent volume of "appropriate" properties

  • Rental Property Investor · St. Louis, MO · Member since 2008 · 189 posts · 75 votes
    16y

    1. What is the average purchase price of the flips or rehabs you're buying? 75K
    2. What is your average time from purchase to sale on homes? 105 days
    3. Do funds available, limit the # of properties you purchase or are the properties getting harder to come by or both ? Getting harder to come by.
    4. What % of the properties are financed with borrowed funds? 100%
    5. If you had more funds available at EXORBITANT rates, would you purchase more properties? Not as a part time investor but definately as a full timer.
    6. On financed properties, are you paying interest, sharing a % of profits or both? Paying interest.
    7. How many properties have you turned in last 18 months? 4
    8. What has been your biggest concern or problem with your process? Finding good enough deals in a small farm area - just need more time to expand farm area.

  • Residential Real Estate Broker · Grand Blanc, MI · Member since 2008 · 885 posts · 316 votes
    16y

    Where is this "thread #2" you're referring to? Link?

  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    16y
    Originally posted by Mark Yuschak:
    Where is this "thread #2" you're referring to? Link?


    http://www.biggerpockets.com/forums/67/topics/46387-reabbers-and-flippers-2-there-is-a-reason-for-my-madness-
  • Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    16y

    Thanks for all the replies to this thread. There were some interesting facts I didn't expect. Rich

  • Real Estate Investor · St. Louis, MO · Member since 2008 · 443 posts · 91 votes
    16y

    1. 100k in my area. Prices are pretty cheap compared to most markets.

    2. 26 days

    3. Properties are easier to come by I don’t worry to much about funds because I wholesale everything.

    4. Very few

    5. In wholesaling 95% of the time I don’t close on a house it has to be a really good deal and some reason I cant flip it

    6. Interest only

    7. 73

    8. No concerns or problems wholesaling is easy especially in this market people are giving their houses away. One quick thing to add is that i deal directly with homeowners I don't buy any reos. Its all about lots of marketing, wholesaling is a numbers game you gotta kiss a lot of frogs.

    Brian Haskins

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