Looking for guidance, what would you do in this situation ?

Question

Hi BP family,

New to flipping and investing. I recently came across an owner looking to sell. Long story short , one turned into a few properties. My question is, because of the condition that the other two properties are in, I think they’d be more beneficial to bulldoze and rebuild rather than a little rehab. My problem is, I don’t have the man power for this. What would be the best move for this. Should I get a larger team and try to rebuild or should I just hand it over to someone that can benefit with more resources?

Matthew Irish-Jones · Answer

@Charleston Moss if you are new a rebuild is going to be very tough.  Flipping a property that should be bulldozed isn’t going to be easy either.

Look to wholesale to someone with more experience.

Milind Shastri · Answer

If I were in your position, I'd wholesale n-1 properties and flip the 1 property with the least work needed. Great way to learn.

Evan Polaski · Answer

@Charleston Moss, is the market able to support new construction?  It is very hard to get anything built cheaply these days, so before you buy these properties with the intent to resell, you may want to make sure builders would be interested.

From there, of course you can either sell them outright or try to find a partner, where you can share in the upside of the new construction.

Matthew Irish-Jones · Answer

@Charleston Moss these projects are very tough to pull off, we are still making errors that cost money to this day.  Small projects with small errors can be fixed.  Big projects with big errors can cost you time and money, and its easy to get upside down.  I am a poster boy for that.

Charleston Moss · Answer

@Matthew Irish-Jones thanks , yes currently working through a couple ideas, this is definitely the top option so far. I honestly don’t see me getting to it as quickly as I would need to.

Charleston Moss · Answer

@Milind Shastri thanks I believe that’s the plan we are leaning towards at this point.

Looking for guidance, what would you do in this situation ?

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