Good morning BP,
I'm looking to get started on my first flip. I have currently found a couple of properties from a realtor were the numbers work. Here's the number.
4 bedroom, 2 bath, 1920 sqft
Comps give me a conservative 250k ARV, in the last 6 months, within a .50 mi radius. (One 4,2 within .25 mi sold for 260k in Sept)
Asking price is 60k
Tomorrow I will be going to see the property and even with me looking at several properties in the career, Im still not the best at determining the rehab cost. Granted similar properties in the area I've looked at have had roughly 100k +/- in rehab.
Here's my situation:
My first flip, so little to no experience, in the eyes of hard money lenders. (Higher rates, which is fine because the numbers work) But its coming up with the funds to start the deal. The 15 to 20 percent of the purchase the lender isn't covering. Closing cost, hard money points, and first rehab draw. Don't have the funds to cover all of these costs!!!
I am in need of experience investor who is willing to work with me on this deal and possibly help with some of the cost, in exchange for percentage of the profit. I have the contractors. I have the lenders who will lend to me but I need a cosigner (experienced investor)
Is there anyone interested in helping me get my first one done??
Where are you pulling those comps from? I would be careful going as far as .50 miles away. Philly is block by block and most investors including myself only care about what 0.01-0.25 and no further. If your agent is pulling comps that far away I would suggest you get a new agent to work with. Those numbers won't work.
@David Bokman Makes an excellent point. I am a newbie to the Philly area but, I did some due diligence and drove around some of the areas over a number of days. There are too many areas where the comps should be done on a very tight range especially as an investor.
David is right on the money. If this is your first deal you will want to be on sight everyday and make sure the work is being done right and in the correct order. You don't want to put carpet down before painting, ect.
If you want to give us a block address we can help, like 5800 woodbine. And where the comps are.
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