All Forum Posts by: Will Barnard

Yes, completely possible for seller financing in this and many other scenarios. Seller financing has nothing to do with the agents commission. They get paid on the % of sales price, 100% independent of the means of buyer's financing. SO yes, reach out to the agent and make an offer of X, or Y with seller financing (with Y being greater than x). This gives seller two options, and the agent a means to help negotiate to meet your terms.

 I doubt they would qualify as independent contractors in this scenario so they would be employees and as such, require workers comp, employment taxes, etc. Hiring a son and friends means they are not licensed. Another concern would be using unqualified help to perform your rehab. Unless it is just demo (and even that can be screwed up by a non experienced helper), too easy to have this take longer or get messed up and have to bring in a pro to fix it which would cost more than twice as much and take twice as long.

From the photos provided, your design, finishes, and exterior elevations are very impressive. I see a lot of investor flip that is crap and this one appears to be high quality, so congrats. YOu mentioned that your 70% rule was based on $850k exit and $250k in rehab. Looks like you went over $50k on rehab but got $150k in sales price (in part by your finishes I assume and in part by market appreciation over the last 10 months). Your numbers are fantastic on this deal.

I am working on a similar deal here in So Cal where the agent (a friend and colleague of mine) had a pocket listing prior to MLS just like your scenario. They were intending to list for $530k and I am quite sure had it hit the market, it would have gone for that or over ask. I told them I could not pay that much but could close in 14 days with all cash, no contingencies for $500k. AFter a day or two thinking about it, they accepted the for sure close deal for less money but did not have to wait longer, did not have to list and have many people through their property, did not have to deal with inspection contingencies, request for repairs, appraisal, etc. All of this was explained to them with my offer which is another reason why they took it.

Moral of my story, although you appear to have hit a triple on this one (great job again), I think you may have been able to come in slightly less on your offer with said explanation to see if you could have gained more cushion in your spread at purchase. For future reference, that may save you when you go over budget and do not have the gravy of market appreciation!

While this may be possible, it is NOT common place in this scenario. As a contractor myself, I would not give 30 days to some investor before paying me for work completed. To accomplish getting more time, one could use credit cards and credit from large box stores like Home Depot to buy materials on 30 day credit, but the labor is going to likely need to be paid right after completion from the contractor.

 Not exactly. While I agree that draws can be a hassle as you have to submit, have inspection and then wait for the draw, you should have been told this verbally and in writing with the loan docs you signed. Also, if you have a $50k rehab, you should be able to set up several draws with the lender so you do not need to come up with all $50k for the rehab, just enough to complete work to get you to the first draw and perhaps some work into the next. Once the rehab is done, you will have been reimbursed the entire $50k of rehab. SOme investors need this as they do not have the capital to cover an entire rehab on their onw without borrowed funds.

I dont know of any programs for that, but all you need is the cloud or drop box and create file folders with photos and perhaps excel files listing each line item you used.

What does homelessness have to do with TOC in LA? TOC stands for "transit oriented communities" and TOC approved plans provide developers the opportunity to add some lower income units in their development near transit to promote less car travel and help provide more affordable housing units in the area. Has nothing to do with housing the homeless.

 @Doug Ito - You can find venture capital firms in LA for real estate developments in a google search. I did one using these key words: "venture capital firms for real estate development in los angeles" and it provided plenty of leads. There are also private investor money and private investor groups who focus on RE, you can probably find some at real estate investment conferences and the like. Are you looking to fund your deal or ???

You are asking for cheaper options . . . but also asking for a general contractor. If you want cheaper, you will need to GC it yourself and hire each individual sub contractor. That takes time, effort, and you need to know how to properly schedule and manage each sub.

Cheaper is not always better. You should be considering time value of money, opportunity costs, and ability to scale (if this is going to be a business and not a hobby).

I am a real estate investor/developer but am also a licensed contractor so I have abilities in house that others may not which gives me an edge. I didn't start out that way though and had to work my way into where I am now.

With exception of the marketplace forums, members are not allowed to solicit, request for contact, etc inside these forums. For educational purposes, it is best to stay active here and ask questions of others, the more y9ou engage the membership here, the more you will get out of it.

As for boots on the ground running, find a local investor flipper near you to learn from if they are willing. As an agent, you can bring something to the table by perhaps bringing off market deals, pocket listings, or even listings that you feel can be negotiated down to "create" a deal for the investor. Perhaps provide your market analysis to them for the exit for free in exchange for their free info back to you on how to operate a flip.

All of my holds have always been held in an LLC and all my flips done through an S Corp. That is not to say that a certain person's situation may differ so always check with your CPA first as they are the experts.